A Sense of Resentment Amid the 'For Sale' Signs

[babylonsister]

A Sense of Resentment Amid the 'For Sale' Signs

By Joel Achenbach
Washington Post Staff Writer
Monday, September 22, 2008; Page A01



The bailout doesn't smell right to the people of Manassas Park, where the foreclosure signs are as common as azaleas. They know all about bad debt here. This is a terrain of oversize dreams, misjudgment, financial calamity -- and empty houses. "Foreclosure. Foreclosure. Foreclosure," said Ed Merkle, 58, as he pointed to the "for sale" signs lining his street.

But Merkle, a defense contractor, said he has lived within his means in an era of easy credit. He didn't take on a huge loan even when his bank encouraged him to dream bigger.

"I've been financially responsible with my own money. Why should I now be responsible for the fact that you were not?" he said.

This may be a Main Street bailout backlash in the making. The details of the financial crisis are still hard for most people to follow -- what with talk of exotic "derivatives" known as "credit-default swaps" and so on -- but the central fact of the matter hasn't been lost on anyone in this Northern Virginia community: The taxpayers are on the hook for the bad judgment of others.

And they say they don't like it. They didn't break it, but now they've bought it. Political leaders and financial titans say the bailout is necessary to save the economy, but on the ground, in such places as Manassas Park, people think that the bailout will reward the wrong people. There's a sense that too many folks bought houses they couldn't really afford, banks urged them on, common sense went on vacation, and now the grown-ups have to clean up the mess.

more...

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/21/AR2008092102534.html

[SpiralHawk]

1. "Reward the wrong people. Smirk." - Republicon finance wizards

"All our debt are belong to you. Smirk." - Republicon financial wizards

[KharmaTrain]

2. Many Still Don't Get It...

They see it, they feel it, but they still haven't connected all the dots. This "bailout" is not getting a lot of scrutiny...it's the typical GOOP game of "crisis management" that got us into the Iraq mess and let New Orleans drown...it's pushing Congress against a time wall and force them to make votes that are sure to be critical to their elections. I see this as a trick to try to paint those who oppose the Paulson sell-out as not supporting the economy. The specifics need to be spelt out more...and strong conditions placed on any use of our money to bail their speculative asses out.

Be ready...home prices will continue to plunge...this will squeeze many who bought homes in the past 5 years and the credit mess will remain until those prices come back to earth. A bail-out has to take into account the big losses individuals will be taking when these bills come due.

Cheers...