09.30.08
The so-called bailout is about confidence in the American economy
I read a news article today about the bailout. It was written for real estate agents on how to reassure their clients that everything is going to be okay. I understand the perspective, real estate agents are talking to homeowners who have listed their property for sale and want to know it will all be fine, that a qualified buyer can be found. It talks a bit about the bailout and how only 3% of homeowners are behind in payments and 1% are in foreclosure. Overall, a positive spin on a tough market. One to pep up the troops in a discouraging economy.
I understand where the author is and coming from, clients want to be reassured that all is okay, and real-estate agents want to assure them. But I t must say, the author missed the mark. I don’t think it’s helpful to talk about the bailout as something that can be glossed over with homeowner’s. It would have been more helpful for the article to have addressed that this is not really a bailout, it is about confidence. It is about shoring up a national and international level of trust that has been lost in the United States and its stock markets. The world is wondering if U.S. citizens will be willing to pay back what they have borrowed. They’re wondering if we will honor repaying our debts. The author never said the bailout is MUCH BIGGER than the 1% in foreclosure. It affects our stocks, our 401K’s, our ability to borrow, our jobs and our lives. This article may be helpful to an agent who is trying to quell fears of a party who has already listed her property, but it will not help the poor buyers who cannot get a loan. It won’t help the small business that needs a short term loan to make payroll, but can’t get it. Our entire economy is at risk.
The bailout needs to happen, and I am incensed that congress is not getting it done NOW