Tucson By Choice!: Is Congress Hitting the Gas A Little Too Hard?

Is Congress Hitting the Gas A Little Too Hard?

 

Hitting the gas a little too hard?

Do you think we're jumping into this trillion dollar bailout bill a little to fast for comfort?  The incoming administration is long on rhetoric and short on specifics, IHMO.  The banks are getting the money and power without accountability.

The consensus seems to be "Oh, it'll be all right.  If we don't do it now, who knows what will happen?"

That's the same sentiment presented to the nation when the Glass-Steagall Act was trashed after 66 years by the Clinton administration (with the help of the Republicans) in 1999.  "It will be good for the economy."  History will point back to that act of Congress as the enabler of the Wall Street derivatives that cut the floor out from under responsible lending practices.

Watch what's happening as Bank of America trys to digest Merrill Lynch over the next six months.  It won't be pretty.  Bigger is not better.  It just falls harder.

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Think of me as your Tucson mortgage expert.

Call me if I can help you with a mortgage
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Comment balloon 14 commentsMike Jones • January 10 2009 09:31AM

Comments

Mike,

I have talked about Glass-Steagall before - a really bad idea that not a lot of people have brought up.

I don't understand Obama's plan, I don't see how government spending money and giving meaningless tax breaks will have any meaningful impact on the economy.  

I also have not heard one mention of any housing stimulus to address the housing crisis.

Simply throwing money around will not solve anything until the supply and demand imbalance in the housing market is brought back to a healthy range.

 

 

Posted by Mark MacKenzie over 9 years ago

Mike, along with many here and elsewhere I have been vocal in my opposition of the bailout band wagon.  It is scaring me that the congress is set on a collision course right now and no one seems to be able to apply the brakes.

Posted by Tim and Pam Cash, Real Estate Professionals - Clarksville TN (Crye-Leike (Sango)) over 9 years ago

Mike,

There needs to be accountability tied to all of this money that congress is passing out.  Well accountability for the BIG guy but, when they send me mine I just want to go out and spend it willie nilley.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

Lots of changes, lots of ideas, lots of press.  It will be great when we see RESULTS take place and who ends up standing at the end.

Posted by Connie Goodrich, CRS ABR (McKinney Realtor)Texas (Keller Williams Realty) over 9 years ago

Very scarey out there right now, especially when looking at the Congressmen in charge. Where the heck have they been during the collision course?

Posted by Susie Blackmon, Ocala, Horses, Western Wear, Horse Farms, Marketing over 9 years ago

Mike,

I think you have a good sense of the pulse of the economy!!! Thanks,   Fran

Posted by Fran Gaspari, "The Title Man" - Title Insurance - PA & NJ (Patriot Land Transfer, Inc.) over 9 years ago

Between Glass-Steagall Act and Gramm-Leach, the decks have been stacked against us for years.  What happened when Greenspan keep interest rates unrealistically low for 4 years just meant that what happened with the market was inevitable. 

They surely didn't have any crystal balls, did they?? 

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 9 years ago

Mike, isn't it shamless?! It is so easy to spend somebody else's money. As they say easy come, easy go! And what kind of a BODY is overseaing the accountability for all these massive plans? Congress!!!LOL!!! Give me a break...I am livid about all of what I hear...It is a social engineering and interfering with free markets...Lincoln said: You cannot save the poor by punishing the successful. I escaped from communism and it is hard for me to witness what is happening...

And as far as the banks and their stimulus checks...from what I heard the money doesn't benefit the consumer but their investment programs by buying out other banks...

I hear a lot of conversations of dissatissfaction and anger from people. I hope we as a nation will stand up and actually act on our beliefs and on what values this amazing country was built on...until then bad politicians will be elected by good citizens who DO NOT VOTE!

Have a great 2009! Bo

Posted by Bo Kociuba & Buster Elliott, HOME is Where Your Story Begins (Berkshire Hathaway HomeServices Anderson Properties ) over 9 years ago

Oh, and BTW I love this picture!!! Bo

Posted by Bo Kociuba & Buster Elliott, HOME is Where Your Story Begins (Berkshire Hathaway HomeServices Anderson Properties ) over 9 years ago

Mike, hard to tell if things will get on track after Jan. 20th, or it is the frying pan into the fire. Most EXPERTS think we have a ways to go to hit a BOTTOM for many of the economic categories.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 9 years ago

I'm worried that the money is being tossed around like beads at Mardi-Gras.  Everyone is grabbing for their share but I don't see any way that they money is going to come back without taxing those who are still working.

Posted by Pat Fenn (Marketing Specialist for CJ Realty Group/Cindy Jones Broker ) over 9 years ago

Mike - I don't think there are any perfect answers to our financial situation.  Essentially, our economy has been plundered.  It is a total myth that it has all been caused by bad mortgages.  However, I believe it was the packaging, and repackaging of toxic assets into derivatives, which ultimately went on to become credit default swaps (unregulated), that contributed greatly to the global meltdown.

I honestly don't know if we threw good money after bad with the bailouts, or dodged a bullet.  I suspect in the future much will be written and presented about these times. . . .I can't wait to see the analysis of it all.  That is if we can trust those that do the analyzing!

Credibility is everything. . .And we've been woefully short of it in these past few years.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) over 9 years ago

Heaven help our grandkids.... they will be stuck with paying for our mess! Good post and love the picture!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) over 9 years ago

Dorie,

It's a great picture.  I don't know who to credit for it, though.

Myrl,

Plundered is a good word for what's happened.  Thanks for the comment.

Pat,

...tossed around like beads at Mardi-Gras.  That's an apt illustration.

Gary,

It may be the case.  Hang on!

Bo,

Thanks for the comment and the encouragement! :)

Lenn,

They sure didn't!

Fran,

Thanks for stopping by!

Susie,

Where were they!?  They engineered this fiasco!

Connie,

I intend to be standing!  I bet you will too.

Don,

There's no accountability.  Thanks for commenting, my friend.

Tim & Pam,

Brakes?  What brakes?!

Mark,

Thanks for being the first to comment.  We'll see what the outcome is by living through it.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 9 years ago

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