Bailout for Homeowners

As many of you know, the United states is in one of the biggest economic recessions--or so we are told--of the century. Recently there has been legislation to help ease the tension on the banks, on the auto industry, and on wall street. Now the bailout comes to the real estate industry. According to the new package being rolled out by Obama Administration, Interest rates on mortgages could be refinanced for interest rates as low as 2%.

What is the cost to do this, 75 billion in taxpayer dollars... Recently the value of a billion has been played down so let me put this into perspective. 1 billion is 1000 millions. Therefore 75 billion dollars is 75,000 millions, or nearly enough to pay for the entire state of Oklahoma to go to college.

75 Billion dollars going towards what? Towards some people who genuinely are in trouble and need help. But also going to people who planned poorly and are now being bailed out by the government. According to the New York Times the package could help people who owe as much as $730,000 on their mortgage payment (NY TIMES.)

Do you agree with this law, If you do great! but if you don't you need to talk to your congressman. Let him/her know what you think and how you feel. He/She is there to represent you, make sure they are doing their job.

Stimulus Package?

In the video above from CNN, you will see Rep. Schock explaining his reasons for voting against the stimulus bill, that has already been passed. He estimates that it is less than 8% stimulus, meaning that out of the almost 1 trillion tax dollars that are being spent only 8% will be used to stimulate the economy.

After looking at the bill myself, there seems to be a large amount of government spending that is geared more towards updating the government than helping the economy. For instance it is written into the bill that 600 million dollars will be set aside for the purchasing of hybrid vehicles for various governmental figures. Not exactly a stimulating factor for the economy. If would like to read for yourself, you can find a full copy of the law here, or if you would like a more simple breakdown of the pieces of the bill look here.

Another thing I would like to point out is that, this money will have to be paid back in due time, which means that within the next ten years taxes will go up, or the national deficit will increase even more, moving our country even more into debt.

There is much to be done, and as demonstrated by the representative in the video, you do have a voice. Contact your Representatives and Senators, they will do what the majority of their constituents want. They want to be re-elected, so make them work for you.