Why you are paying for your neighbors..

  • Posted by a hidden member.
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    Feb 21, 2009 3:51 PM GMT
    If we don't stabilize the housing market, everyone will suffer.
    -People who are making their payments will continue to have their houses devalue because of foreclosed homes
    -Banks that hold the defaulting assets will be paralyzed, because they need to know if they have enough assets to survive before they can lend.
    -Companies and individuals will not be able to fund projects without loans for likely a decade, because our culture has become dependent on buying with debt.

    Housing is the destabilizing asset in the market right now. Our options, as a society, are either to let them plummet and have the banks suffer, our credit culture crash, or we spend a lot of money to try to fix the problem. Since the first option will lead us into a decade of recession, we should probably fix the problem and then enact regulations to shift US society towards a savings society.

    The ideal of everyone being treated equally, or the ideal that you should reward responsibility, are, I believe, noble, but in this circumstance inapplicable.
    -The cost of equal treatment to all citizens would be enormous. The debt our society would accrue would kill our dollar's value. We need to keep our spending roughly in line with what the rest of the world is doing. If we exceed that, we could bankrupt our dollar.
    -As for rewarding responsibility, that's sending money to where it will not do any good. Sadly the problem lies with those that made mistakes, and unfortunately, the people who made mistakes are numerous enough to drag us all down with them. It's not fair, but we need to help the irresponsible to save the system.

    The stimulus package
    I am not aware of what all exists in this package, but the aspects of it that will be useful are the new infrastructure plans. The economic stimulus package will likely take a year before any real projects get under way. If we can stabilize the housing market, to save the banks and free credit, these infrastructure projects will create a lattice that new business will chomp at the bit to build around. The projects we build now will spur the next 20 or more years of growth. It is helpful to consider the opportunity this package will create for our future economy. As long as our economy is moving, we can pay off debt. If we stagnate, it doesn't matter how much money we don't spend, we won't pay off what we already owe, and those we owe will crash our dollar and leave us poor and destitute.
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    Feb 21, 2009 8:01 PM GMT
    This whole issue gives me an ulcer. I personally think the greedy f'whits that have over-extended themselves deserve to lose their houses and the housing prices should fall and correct themselves. Either way, we are going to pay, Spend a ton of money now to stimulate the economy and pay for it in taxes for the next 4 generations, or let shit hit the fan now, and rebuild the economy based on something that ACTUALLY works. This has taken the entire agenda away from creating a more sustainable planet - spending has become the new way to stimulate the economy and keep things going, but consumerism is killing the planet and this is getting us no where. This civilization is doomed. Take your shirt off, dance on a speaker and have a good time, cause the next few generations are going to be slaves to debt.
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    Feb 22, 2009 4:27 AM GMT
    Before taking into consideration all the debt we're creating to fix this mess, our government already had a lot of debt. That debt would have taken generations to pay off if our economy tanked. So consider which scenario would have been better..