Monday, September 29, 2008

Elvis Has Left the Building~Houston, We Have a Problem

Say goodbye to Disneyland.

In a vote that shook the government, Wall Street and markets around the world, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, leaving both parties' lawmakers and the Bush administration scrambling to pick up the pieces.

Dismayed investors sent the Dow Jones industrials plunging nearly 800 points, the most ever for a single day.

This isn't a good thing, my friends. It is just the beginning of a financial crisis that will leave America reeling for many years to come. I'm mad that it happened; I'm mad that good honest taxpayers will be footing the bill.

We are being played. Wall Street, Big Government, Golden Parachutes, Gordon Gekko, Greed.

Who is funding the nonsense?

Main Street (that's you and me and any other taxpayer in America!)

Thru our tax dollars, mortgages, accumulation of "stuff" and general consumerism we continue to line the coffers of big business, bankers and industry, leaving our hard earned dollars disrespected and misused.

We've had our heads in the sand.

They've played us and we trusted them.

Yes, we've been conned, because we forgot whose pockets the money is coming from. It is OUR money that has been mismanaged and misused. OURS. It will be OUR MONEY that funds whatever buyout agreement finally passes.

I'm so upset about all of this I can't even see straight.

We are paying for the gasoline for our politicians, for crying out loud! We are paying for their CARS! We are paying for expenses regular people cannot even afford for themselves!

We've been conned by the best...those that gained our trust and distracted us, even as the walls were tumbling down.

I know the consumer created this along with the liberal lending, and outrageous spending. I don't have my head in the sand, but I probably was in some sort of pink cloud denial.

However, I'm one consumer who never needed to over extend myself, have a second mortgage, max out my credit cards, etc. to feel good or provide luxuries. I've never even had a car payment! We have luxuries because we saved for them and had the money to pay cash.

I hate debt; it makes me nervous. Saving and planning feels good to me, yet I feel the responsible citizens are on the short end of the stick. Other than dire circumstances, why did so many overextend and default?

I realize, the bailout is inevitable. It will happen, that's for sure. We have to get the economy moving and it won't move without a bailout.

I know that credit drives big business, and there is a major freeze on it right now, and that people could lose jobs, etc. But, if we had controlled that credit to begin with, wouldn't we be better off?

Am I one of the ones who aren't getting it?

I want to wrap my mind around WHY this happened. Because I've been very aware of money, credit and debt since I was a child, thanks to a very astute father. Am I understanding it all, from a laypersons point of view?

It doesn't help that today, out of our household income, we bring home about 55% after taxes, SSI, insurance, etc. (I live in the beautiful, yet very expensive, So. Cal.)

My area is one where foreclosures are rampant, because money was loaned on $600K houses to households with incomes less than $75K with zero down, interest only, ARM's.

Now, those houses are worth half that....and you know the rest of the story.....

The beauty has faded, Elvis has left the building, and yes, Houston, we have a problem.


Dougist said...

Hey there,

I know we've been chatting over at BC but this is the first time I've been to your site.

I feel the pain and anger in your post and share it, as I think that many do. I hope our discussion board conversation helped communicate the idea that there are two issues we face right now.

One is a policy issue about lending and the conduct of banking, but the other is the immediate crisis of banks that could fail with catastrophic implications.

In any event, I just wanted to stop by and say that I'm enjoying reading your blog...


Nancy Ellyn said...

Doug, It means so much to me that an astute, educated person like you would comment on my blog. My terminology may not always be right, but I feel I get what is going on.

In a nutshell....lots of screw solution. I know we have to keep the economy going, and a govt bailout is the only way.

That said, I can't help but be pissed at my neighbor, who took a second for plastic surgery, and is in foreclosure.

My sympathy is limited for ANOTHER neighbor who took a HELOC for a $100K wedding, and is now in bankruptcy and foreclosure.

All the while, my college student daughter is thinking I am "tight" for not throwing lavish birthday celebrations, trips abroad and brand new cars. (she has a car, BTW...a cute USED one! LOL)

Plus, her education is being paid for by mom, without benefit of student loans, because I did without. She's appreciating me more and more these days, by the way.

Yes, I'm ranting...."it's my blog and I'll cry if I want to!".

I appreciate your thoughts and wisdom, Doug!


I have really been trying to not get too upset over this but I must say your post has me fired up. This is just awful and I am very worried about the impact all this will have. Another great post. You really said that so well!

Nancy Ellyn said...

Heidi! It's probably much better to stay calm, but, I am fired up! LOL I know I need to be totally positive (for my sanity!) and I am working toward it. Love you, sweetie. You are a jewel!

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