The Bailout: Surprising, Frightening, Infuriating
I was surprised yesterday morning to hear that the House had rejected the $700 billion bailout package. Surprised, because I thought its passage was a sure thing. And surprised at my own reaction to it.
Part of me was happy it hadn’t passed, because the whole thing has smelled fishy from the start. Frankly, I’m not fully understanding what’s going on, and I’m not convinced that a $700 infusion from the government is going to help. And I’m confused: If Republicans favor less government and less regulation, why is the administration so eager for this bill to pass?
Part of me is scared, as I watch my IRA’s value plummet day after day and worry whether my husband and I will lose our jobs.
And part of me is angry — at the irresponsible and reckless behavior that got us into a mess I have no control over.
Apparently I’m not alone — look at the results of this MSNBC poll asking Americans what the next step should be. About 47% of respondents want the rescue plan renegotiated and passed immediately, and about 37% say we should let the chips fall where they may. (The rest want a brand-new solution.)
Tonight, I flipped on MSNBC and watched Rachel Maddow interview Laura Tyson, an Obama financial adviser, who gave the most cogent explanation I’ve heard yet about what’s going on. She said the word “bailout” is a mischaracterization; rather, the country is “in the midst of a massive credit contraction” that is “strangling the economy” and making it impossible for anyone to borrow money for businesses, student loans, or consumer purchases. This, she said, will lead to lost revenue, jobs, income and production, and the stock-market losses are reactions to the anticipated economic paralysis.
That makes sense. Tyson says she thinks that the reason the bill didn’t pass is because people don’t fully understand what’s going on, and she said that’s the fault of our leaders. One of the major duties of a leader, she said, is educating constituents.
I’m sure it will take a long, long time before any of us are fully educated as to what caused this crisis. In the meantime, we’re at the mercy of the financial markets and our government, neither of which has served us well, or earned our trust. Most Americans believe it’s their fault we’re in this predicament to begin with.
I can only hope that this fiasco is a wake-up call to everyone who overborrowed, overspent, and took too many chances with their/our money. But I don’t think it will, because most Americans are uneducated not only about the country’s finances, but also their own.
Recent Redfin posts:
Another Slam for Homeowners
The Irvine Market Report: Detached Home Stats, September 2008
Tustin: The Tale of Two Brooks
