Congress is talking about passing a $300 BILLION dollar bail out. There are only 300 Million Americans. That’s right folks, that’s $1000 for every man woman and child in the USA. Why do we need a bail out of this size? Only a small percentage of home owners are in default. California, the hardest hit state by all this, boast a total population of 36 million. Out of the 36,000,000 there have only been 253,150 foreclosure notices sent out in 2008 as of the end of June. The numbers are reported quarterly so we won’t know what they are now until October. As of right now, they’re still what I’d consider to be relatively low. That’s not even 1% of the population. It works out less 00.6% or 6 tenths of one percent.
Worse yet, many of these aren’t actual “residences”, they’re “investment properties”. When the value of the houses dropped, the payments on the “investment properties” went up. That’s where a lot of the California foreclosures are coming from. Frankly, most real estate in California is over priced anyway. At least by my standards. What would be considered a crack-house here in Texas will sell for $750,000 in California. I know… I’ve seen it happen.
Does that mean we get a thousand dollars each? Oh, hell, no. What Congress is telling us is that they’re going to take a shit load of money from those of us who go to pains to work and be stable and hand it off to people who clearly can’t manage their money. That means that all $300,000,000,000 will be coming from the other 99.4% of us who are smart enough not to loose our houses. We’ll never see anything good come from that money. They’ll hand it off to some corporate fat cats, presumably so that they can get their bonus and their golden parachute. They’ll hand some of it off to some hot shot investors that lost their asses gambling on the housing market. Maybe one tenth of one percent of the money will actually go to keep a family in a house they own.