Harry Tran’s Daily 101

I am sure we all know what the consequences are of not getting the bailout. Out congressman tell you the consequences all the time to get you to believe that this is a must.

But I don’t believe this is a must.

Here is one situation I see from this bailout that will still allow it to get derailed after people get saved.

There are already an over supply of homes out there, most of these homes are out in areas that are on the outskirts of the city. If you’ve ever been to Sacramento, CA you’ll know that a lot of newly built homes are 20 to 40 miles outside of any actual businesses. These people who get saved and stay around their homes will still decide that they may need to move out of the area and closer to work, due to the rise of fuel prices, no one anticipated gasoline would ever get near $4 a gallon when they bought these homes 5 or so years ago. The only things being built around these homes are WalMarts and Targets, which aren’t jobs with sustainable income.

They’ll have to sell their homes but I wouldn’t buy them, I don’t wanna live near a Walmart and Target with no real jobs available, and second I can buy a home that hasn’t been sold yet in that same area because the ownership of those homes is not 100%. Why would a potential buyer buy from the used car owner when they can get that new car smell right next door.

The only way this whole economy will stabilize is if people finally bear the burden of what they signed up for and pay their mortgages off even if it means postponing the final payment back a few years or decades. If banks know that they’ll see this money back but its only on deferment they might be more confident in allowing businesses to loan responsibly again. All that thin air money is gone, and nothing done by the government will bring it back period. People are set to lose money in every direction and that is a must because that money was just falsely created through the repackaging of debt and selling it to someone else.