One Down, One To Go

As of this moment, the Health Care/Bailout Bill has passed the Senate (74 to 25) with both presidential candidates voting in favor of the bill. This morning there is an extended drum roll, waiting…waiting…waiting for the House to do the same. Wall Street, and the economy as a whole, is still on a downturn, not taking anything for granted (for a change). Investors are nervous, and I’m not talking just the big guns here, I’m talking about Everyday Janes and Joes like you and me. Citizens have been actively contacting legislators with their opinions on this matter and registering to vote in record numbers, hoping that their voices will be heard.

I must admit, early on in this crisis I thought very selfishly and with a tinge of jealousy, I might add. We had worked to buy our home, constantly improving it, assuming that one day our biggest financial asset would be sold and would help fund us in our “twilight” years. I, like many other Americans, saw our homes as a source of retirement funding. It’s a particularly popular notion in California, where home prices have gained ground threefold in less than 20 years. As the mortgage crisis began and prices started tumbling, I saw part of my future go with it. (no lectures here, I see the error of my ways, thanks to Sweet Digs readers.) What was worse is that we have friends who got out at the height of the market, buying down in places like Florida and having a comfortable nest egg to add to retirement funds. Lucky them. Only 50, my husband and I had planned on a semi-retirement in the next few years, relocating to a less-expensive area and continuing to freelance until we were too old or tired to do so. So far our house has taken a hit of $150-200,000. Not something I’m likely to get back if we plan on selling in the next 5 years.

On the other hand, what this crisis has done is bring the market closer to my children. Home prices are becoming more realistic and they are seeing a glimmer of hope that some day they will be able to afford a home of their own. It is also making them much more financially savvy; investing in 401(k) plans, building up a saving account, keeping the credit card balance paid off or at a minimum, and watching the market more closely than I ever did. It’s also making them more politically aware and active, which can only be a good thing for them and our country.

So there are winners and losers. Hopefully the American people will continue to have the strong resolve to weather this storm, like they have countless others.