Apparently, I get started on politics and this new info comes out… I bit my tongue last night, but it’s starting to hurt now. 🙂
It is being strongly suggested that the government may be taking over Fannie Mae and Freddie Mac in their ridiculous effort to “fix” the economy because of all of the bad loans both organizations have allowed irresponsible individuals to take out (ie. the people who think they can easily get a mortgage loan and live too far above their means).
That news seriously…ticks me off, to say it politely. Why? Because who will foot the billion dollar plus bill? Oh yeah, we will, the American taxpayers. Ridiculous. That just makes so much sense, right? Let’s make those who are responsible with their finances, those who know how to live within their means or below that (Gasp! Simplicity!), and those who did not make the bad decision to take a mortgage out so that they could pretend their life is so much more put together than their neighbor’s, yes, let’s make them pay for the mistakes that the lenders and borrowers made.
Hardly. How in the WORLD does that somehow make way for the economy to fix itself except for a quick fix? First of all, making us foot the bill will only make it HARDER on the average American trying to get by as it is. Second, whatever happened to keeping the banks and lenders more responsible for who they gave money to? Third, where is the lesson going to be for those who took the money, got the loan, and aren’t really going to have to deal with the repercussions? There are so many lessons to be learned here that are just getting a band-aid fix that won’t likely hold if something isn’t done to make people more financially responsible and make lenders and banks more accountable for the money they lend and who they lend it to.
Things got way too big and where are we? On the cusp of a blow up in the home mortgage and loan industry. Now we’ve heard Obama wants to make government or at least keep it “big”, perhaps that means he supports this band-aid fix, I don’t know. But the idea in general is essentially suggesting that at this point in time when things are hard as it is, we are all made of money that we can gladly send to the government to help those who made irresponsible decisions. Right. Interestingly, McCain and Palin addressed this today stating something that should be terribly obvious – make those organizations and businesses smaller. If Fannie Mae and Freddie Mac go under and have to be babied with a band-aid from the government, there could be a domino effect with other banks and lenders which would be horrendous for the economy. We don’t need a band-aid here, we need internal surgery. They need restructuring, reorganization of the lenders, and they need integral, vital accountability between the borrower, lender, and those watching over the lenders to be sure they are making the right decision.
Also, Fannie Mae and Freddie Mac’s daughter, Sallie Mae is causing problems. She’s the college loan extraordinaire. Well, apparently she’s suffering and having issues as well. My mom posted on her blog about the issues she’s having with my sister’s loans because of it. If Sallie Mae is in any way connected with Freddie Mac and Fannie Mae, there’s more trouble for colleges and college students and families. Just what the economy and we all need, right? Just what the college students who will lead the future need, right? Not good. On any account. And it doesn’t need a band-aid slapped on it to “cover up” the boo-boo the larger organizations and lenders (both within Freddie Mac and Fannie Mae) have made. I think we’re all a little smarter than the government thinks and we know that there’s a problem within the process of how they are giving out loans (speaking on home mortgage terms here) and who they are giving it to. You can’t just cover that up and expect it to go away, something has to be changed with that. A quick fix so that you appease the organization and borrowers in the here and now just so you have time to restructure isn’t the smartest way to go. We don’t have to make everyone else pay for another’s mistake, people need to own up to their decisions and start learning how to make the right ones.
What we really need is for Americans to learn to responsibly deal with their finances instead of throwing it anywhere they want to in our “gimme gimme” society.
Tongue bitten once again. For now. 🙂