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Yet another ridiculously expensive stimulus package is currently being debated as a way to aid the economy, and consumers have been fairly mixed about this one. While the first bailout was targeted at our financial institutions, this one will actually favor the average consumer by looking to repair our nation’s infrastructure. If it wasn’t so filled with other fluff, I might actually see the merits of such a proposal, as jobs are admittedly good for the economy and for my friends who are currently out of work. While the battle rages on in Congress, however, there’s still other aid being doled out as well. The rest of the TARP money is already beginning to be allocated, and we may have to actually spend more than the original $700 billion that was picked because it was a really high number…
So naturally as a voter and consumer, I’m angered by this turn of events. Why the hell are we endorsing more aid to banks and financial institutions if the first half of the bailout money was handled so recklessly. The faulty logic used by the industry that they “had to” pay out huge bonuses in order to keep their top talent rings hollow in my ears. Where are these big finance guys gonna go? To another failing financial institution? President Obama has reamed out the sector as well, calling such bonuses “shameful” and putting a pay cap on their pay at $500,000, but the damage in the minds of consumers has already been done.
Where does the average consumer fit into all of this? The fiscally responsible individuals who had kept their finances prepared to weather a downturn? Rule number one of personal finance is to have enough in the way of living expenses to keep yourself tided over for awhile if the market goes south or you find yourself without a job, but why hasn’t the government, particularly the state and local governments, prepared for this by having cash on hand as well? Why is our government so woefully unprepared for a significant economic downturn that they have to borrow tremendous amounts of money that could undermine the value of our currency?
While I also support an aid package for the nation’s infrastructure and investment in green technologies, aren’t there other ways to address the issue than government deficits that would have been unheard of years ago? If the prosperity of previous years was built upon a house of cards made of debt, fraud, and touting “home ownership” when the banks were the real owners all along, is the solution to the problem even more debt? Everyone likes to point out that this is a short term solution and that we’ll address these issues over the long term when the economy recovers, but what if it doesn’t? The “long term” could get here sooner than we think.
Last 3 posts by phillenbrand
- Loan Modification Fix - July 20th, 2009
- Free Home Loan Modification Help For Homeowners - July 10th, 2009
- Would One Mortgage Regulator Work? - May 21st, 2009
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