$700 Billion Bailout Bill Passes…So Now What?

Yet again, another good question, to which I must answer, “I don’t know”.  With the new plan passing on Friday afternoon, the markets had no time to react to the news although after the first reaction to the voting down the package, I found it near impossible for the vote to come in No again.  So now we have $700 Billion to bailout all of those companies that were in greed mode and trying to rape the American dream by offering people mortgages that they knew they could not afford only to take them back and resell them at a foreclosure sale.  What they did not take into account was the massive default rate across the country that noone was able to make their mortgage payments and the market would get flooded by all of these homes.

Also, another part of the new bill that I believe will need to be monitored is the “Golden Parachute” that most high paying executives get when they are let go from their jobs.  This money from this bill cannot fund those transactions, or in other words, reward all of those executives with enough money to live their lives confortably for a while (per their lifestyle) while many americans are forced from their homes.

However this plays out, I am sure there will continue to be controversy since we are all working on new ground!

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~ by ToughGuy on October 5, 2008.

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