The Obama Bailout Plan: drawing lines in the sand
The Obama Bailout Plan: drawing lines in the sand
The clamor and fuss over the much-vaunted Obama bailout plan continues, with two factions cutting a clear line between the moderates and un-opinionated, the detractors and the praisers. On one side are the praisers, who believe the bailout plan is exactly what the United States needs right now, another chance to make things right again. Advocates of this side profess a profound belief that US president Barack Obama could very well bail the US economy out of this downward financial spiral that it is in right now, and this move to pull the collective fat of the indebted out of the foreclosure fire could be the much-needed catalyst to bring the economy back up to the levels it were before the financial bite began.
The Obama administration backs this up by saying that using government funds to lower the mortgage payments of a number of homeowners is a necessary move to hinder the foreclosure of homes, as foreclosures tend to depress the property prices of houses nearby, add to that the fact that banks don’t really make any money when forced to repossess a foreclosed house, quite the opposite, actually. For their part, the American banker’s Association believes the bailout plan is bound to win over people, saying it is a constructive, flexible, and multifaceted initiative that is most likely to have a positive effect. Politicking aside, saying this to assuage the collective fears of the people dreading complete economic meltdown is, in itself, a good move, if only to fan whatever flame of hope still exists in the hearts of those involved in the process of economic recovery (or at least in the attempt to do so anyway).
Detractors, on the other hand, have a different take on the matter. Seeing as how there are also a number of people who did buy cheaper and modest homes within their budget, as well as those who only rent the place they live in, the mortgage bailout plan, it seems doesn’t sit well for everybody, mostly, for those which it cannot help in anyway. Some of these people have expressed their opinion that they have very little sympathy for people who are currently stuck with negative equity just because they gambled on the fact that home values would always go up, since there are some people who see this trend as nothing more than pure myth. Others argue that this plan is nothing more than a simple act of rewarding people in debt at the expense of people who save money, while others even go further by saying President Obama actually has a term for those who didn’t get over their heads during the recent housing boom and were actually able to pay their mortgages on time: suckers.
The Obama Bailout Plan: drawing lines in the sand
Detractors of the bailout plan have actually expressed regret at being honest about their income declaration, saying they should have simply lied about what they really make, and instead went for refinancing a couple of years back for the full amount of the loan with a very low teaser rate, and then simply used the cash from the loan to purchase frivolities such as different appliances, electronics, and maybe even a luxurious vacation.