It says:
Two giant mortgage companies get into hot water over risky investments. The government steps in to throw them a lifeline should they need it.
Hundreds of thousands of Americans buy homes more expensive than they can afford. Congress approves a rescue package.
Troubles erupt at a Wall Street investment firm that made bad bets on mortgage investments. The Federal Reserve steps in and provides financial backing for the company's takeover.
Meanwhile, tens of millions of people pay their mortgages on time, don't max out their credit cards and put money into retirement funds. They may even save a little extra on the side.
In return, they get rates on their savings that don't even keep up with inflation. They also are witnessing their nest eggs shrinking as the value of their homes plummets and the stock market tumbles.
Policymakers in Washington, D.C., seem more focused on rescuing those who behave badly by putting at risk taxpayers who've played by the rules and shunned the get-rich-quick schemes of Wall Street croupiers.
Hmmm, so since I'm not an idiot, I get rewarded with the short end of the stick? Seriously folks, that is what's happening. These companies/people have made risky investments because they thought the market could sustain it, then they got in trouble because the market couldn't, and now the federal government -- MY tax dollars -- are bailing them out.
We bought a condo (not a house) because we figured we could afford it on one income in case something were to happen, oh like, we had a baby or broke a leg. We got a 30-year fixed mortgage, not a 5-year fixed that rolled into an ARM or an interest-only mortgage, like some people recommended we get, because we wanted to be safe. I had a "friend" who thought I was so stupid for not getting an interest-only mortgage. He reamed me when I told him we finally bought a place and what mortgage we got, since "we'd be sorry" and "real estate has never depreciated" and on and on. Who's laughing now?
Well, maybe he is. If his investments were too risky, maybe he's getting bailed out by the government, which is helping all kinds of overextended people.
Additionally, we save money every month, I shop with coupons, I go to second-hand stores, I never buy groceries unless they are on sale, and on and on. Some friends (no mean to offend!) were talking about baby shoes the other day and how they pay between $17 and $30 for a pair of baby shoes! Oh my gosh! I rarely pay that much for shoes for ME, and I don't grow out of them in six months. They must be some great shoes. (What is the going rate for baby shoes anyway? Any thoughts? I am still new at this.)
Plus, we have a decently fuel-efficient car, I took the bus to work, I just all-around try to be smart about my money, my investments, my savings, my future.
But, since life isn't fair, the companies/people who don't try to be smart, and instead try to make a quick buck, get a government bail-out. Boo.
I don't mean to be a party pooper or overly stingy. I just think people need to act responsibly and not expect the government to take care of them with they make dumb decisions. Some people genuinely do need help, and I'm all for taking care of them. Perhaps it's a family who could barely afford a home and because of the interest rates were finally able to get into their first place. Good for them; we should help if they need it. But don't be alarmed if I find out they chose a 3,000-square-foot McMansion with a master bath bigger than my condo and I'm not nearly as sympathetic.
So, what is the answer to this one? Elect leaders who don't support helping people? That doesn't sound right. Not pay my taxes? Not likely. Just get mad, vent about it in the blog, and move on with my life? Probably.
4 comments:
Technically babies don't need shoes until they are walking outside, but you will want to cover up those little toes since they have the potential to turn into blocks of ice when it gets cool. You can get little baby booties for pretty cheap, but honestly, we've found only the Robeez-style (you can get knock-offs at Target) stay on the little feet (more advice on baby socks if you want it). Cute little grown-up-shoes-in-baby-size seem to only irritate the little ones, and they are heavy too. When they start to walk, you probably don't want to be super on-the-cheap about baby shoes since you are helping him develop the feet he will have to walk on for the rest of his life, mainly you want to look for soft-soled shoes with traction. I have also heard that toddler-feet can get sweaty and stinky, so natural fibers (i.e. real leather or cotton canvas) can help with this delightful phenomenon. Toddlers are so funny - as we move into this phase of life, I am constantly entertained. That feels SO off-subject from this post, but since we don't own a home, and are not in financial trouble, I will remain neutral on that point.
I could have written this post, Angela! It just bugs me so much that people are basically getting rewarded for being stupid. Maybe I should go make some ill advised purchases! My comfort is knowing that there is more to life than houses and cars etc. I think to myself, "They got their reward on earth but I'm getting a much better reward in heaven!" After all, the point of this life is to learn and grow and I think you and I are learning more than those folks. (And those grapes would be sour anyhow...)
Yeah, as far as baby shoes go, just get some really cheap, 2nd-hand store ones to keep his feet warm when he isn't walking yet. I'll let you know what works once Jackson starts walking.
As for the rest of this post, seriously annoying! I think you just have to feel good that you aren't way in debt. At least thats how I feel. Its nice to know that we don't have to rely on the government-or anyone else- to support us. We can make good decisions, and make good habits for the rest of our lives!
AMEN!!!! I totally agree. Its so unfair that the irresponsible ones are being bailed out while those who are reponsible are paying the bill.
PS I never bought shoes for my kids until they learned to walk -good! Why do they need shoes when they are not on their feet at all? And once they start learning to walk they need the natural balance of their feet and toes.
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