Common Sense

It seems that every time that I switch on the television, there is more bad news about the economy.  Well established companies such as Best Buy, Circuit City and DHL are either closing shop or laying off thousands of workers.  To add to the problem, mortgage foreclosure rates are climbing and seem to be swallowing up homeowners fasters than sinkholes in Florida.  Now, I turn on CNN this morning only to hear that the 700 billion dollars rescue package for mortgages at risk is now going to be used to invest in banks, rather than help those in trouble.  How did this change come about and is it fair?

A recent statistic says that, by the end of the year, nearly one-third of all homes on the market will be bank owned homes.  Not only does this represent a huge number of families who have lost their home, but also a glut of real estate which nobody can purchase.  If less people can qualify for a mortgage, less mortgage money is available or the price of real estate falls so low that banks can’t recoup their investment; will things really ever get better?  Rather than invest in banks to prop them up so that they can continue to foreclose on more Americans, the rescue money should be used to help the families in danger of losing everything.  Isn’t this taxpayer money anyway?

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