Bilinda’s take on the whole money mess

money mess!

Another weekend is here, too bad most don’t have any money to enjoy it huh! Well I thought I’d throw in my 2 cents about this whole wall street meltdown. Many of you may not agree with me, but that’s what’s nice about having your own blog, you can say whatever you want! Feel free to leave a comment expressing your own views.

I think everyone can agree that most of the reason for the whole mess is the housing prices. Prices for houses kept going up and up. Investors bought many and flipped them for profit. Banks made it easy to buy these houses, even if on paper it did not look like they could afford them. Over the past year people that normally could not afford these big houses moved into them.

Then the bubble went POP! The prices of houses went down, and down. The investors who had all those houses could not sell them. The people that could not afford the houses but got the loan anyway suddenly said “hey, we really CAN’T afford this house!” So then the big foreclosure race was on. Banks got the houses back, but could not sell them. The loans they gave turned to mud, or to those politically incorrect, shit.

That started a chain reaction of people broke, losing jobs, the banks go broke, which sets off big cracks in wall street. SO, who’s fault was all this? The people giving the loans? The people getting the loans? I say it was both. Most car wrecks are not the fault of one, often it’s the fault of both, and so it is here.

On the one hand we had greedy loan companies that knew it could not last forever, but as long as the money seemed to keep coming in, who cares? So they made it way too easy to get a loan, as if they could not afford it hey, they get the house back and sell for a profit. After all, prices just keep going up, right? So they put people at risk and played fast and loose. Yes, that is true.

HOWEVER, there is a saying that goes “let the buyer beware”! These people getting the loans where not fresh from the jungle. They knew what they made, if your getting a new house you damn well better sit down and figure out if you can afford it. If you KNOW you only have enough for an $800.00 mortgage, but the bank says, heck I’ll give you that big house for $1,400.00 mortgage, you say NO!!!!

But they did not, they said “damn, everyone else is getting big houses, I’m Entitled to that big house, even if I can’t afford it.” So they got loans that they KNEW, or SHOULD have known, that they could not afford. So I blame both the banks, all those mortgage lender companies, AND the people that got the loans.

The REAL victims here are the honest, hard working ones who don’t live on credit, who don’t buy things they can’t afford. If they can’t buy it, they don’t use credit to get it, they just,,,,, don’t get it! As all this crap played out, these people went about their lives living smart and honest. But now, every single person is hurting, even though they had nothing to do with it.

So what should we do? Here comes the unpopular part. Look, prices for everything got too inflated. People use too much credit trying to live better than they really can. There is only one way to get everything back right. Let everything crash. Let the big companies lose the money they pushed people to buy. Let prices for everything go down.

Let people go bankrupt and get rid of those credit cards, SUV payments and those mortgages they can’t afford. THEN, we live life reasonably, within our budgets. We don’t use credit to buy the damn groceries, we get second hand cars, we live in modest houses we can afford. Then from there we work our way back up, only more smarter and with a better plan.

This all really is great! I mean it’s going to teach everyone how to really be smart about money and how to live within their budget. The big companies that played fast and loose are going to go out of biz and no longer be around. It’s just too bad the ones that were smart and doing everything right through all this had to get hurt too.

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