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My Two Cents on the Financial Meltdown

Warning: The following could come off as ranting, or make me look like I don't know what the hell I'm talking about (and I very well may not), but I'm really just trying to process it all and make sense of it. Proceed at your own risk.

In a way I'm kind of glad that the 700 billion dollar bail-out package did not pass today. In my humble opinion, it is not my responsibility to help pay back something that I'm not responsible for in the first place. I do not have a lousy mortgage, I pay all of my bills on time, and I do not buy anything that I cannot afford. If I have something I want and it costs more than I have on-hand at the moment, I save for it until I can afford it and buy it outright. Or, if I'm charging something, I never charge an amount that cannot be paid off in one or two months maximum.

I (or any other responsible taxpayer) should not be saddled with debt that was created by bank CEOs who never should have issued lousy mortgages to people who couldn't afford to pay them to begin with. Adjustable Rate Mortgages should be illegal, and whoever came up with the concept should be drawn and quartered in public. If anything, the bill for this whole mess should come out of the pockets of all of the CEOs and bankers  who started this whole mess by issuing lousy mortgages, with a percentage being paid by the folks who got themselves into a mortgage that they knew they couldn't afford. All it takes is some simple math (it's called a budget, people) to figure out that you can't afford something.

Speaking of which, every school in the United States should require a basic financial management class as a prerequisite for graduating from high school. I'm shocked at how many people in this country know little to nothing about managing and creating money for yourself. I learned my lessons the hard way by watching my parents sink into financial problems when they both retired without any type of cushion to get themselves through their later years. Nothing to pay or take care of their mounting medical needs, and nothing to fall back on in times of crisis. I vowed to myself that it would never happen to me. What did I do? I started doing research and reading books and articles by people who know how to make a dollar or two. Then I started putting into practice the techniques that made the most sense to me. Guess what? It actually WORKS.

Take responsibility for your own actions. Don't look for people who had nothing to do with the crisis to bail you out. Learn from your mistakes and don't repeat them again.

Do I have any idea what will actually solve this mess? No, I don't. Am I scared by it? Yes, I think anybody would be. Ultimately, we will get through this. We always do. I just hope we all learn to do the right thing and move on to make things better and not worse.


( 1 comment — Leave a comment )
Sep. 30th, 2008 11:15 am (UTC)
Yeah, I agree with you. These CEOs knew what they were doing and made a load off of it. They didnt go down with those sinking companies. No way. This whole situation was contrived to make money and have the government pay the bill. It almost worked.

The people that took these mortgages live in a country that has taught them to live above their means, to get everything on credit and pay for it later. The banks assured these people that they could refinance once their payments began to rise and all would be fine.

I feel sorry for those people who are losing their houses. They are learning a lesson at a horrible price. The same way you did, by watching your parents.

But the banks were not innocents in this. They knew full well what would happen. Its happened before. In fact, they were counting on it as were many others who invested.

( 1 comment — Leave a comment )