Saving the Housing Industry

Are you as aggravated as I am? I am not mad that people who are losing their homes are getting help. I am angry that it had to be an election year fix which always costs us more than they originally intend.

Besides, who is going to pay for this? Has Congress found places to cut back? No. They are increasing spending with money that they do not have, and they are cutting some taxes!

This is what angers me. We have a government without any fiscal responsibility! The Congress has absolutely no one who knows anything about money.

My wife and I have a home we are paying for. We make our payments on time. We do not have to rely on someone else to bail us out. Why? We know our finances. We know our budget. In fact, our lender and our real estate agent told us that we could "easily qualify" for a home that would have cost $40,000 more. I said sure and then we would have to cut a ton of expenses to pay for it - NOT!

The government has now decided to spend at least $25 Billion dollars, then I found this also included in the bill in a Fox News Report...

"The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new "consultative" role overseeing the companies."

Again I repeat myself - This is the biggest baloney I have ever seen. And to pay for it, they are cutting taxes. Where are they cutting expenditures? No where!

If you do not have a budget, you do not need to be buying a house in the first place. Many who bought these overpriced homes had absolutely no right to buy these homes - Yes, they did not have the right! Why? They do not understand financial decisions well enough to pay for a home. Americans have become extremely ignorant about money. They lack responsibility and believe living on credit is the true way of life.

Now, because I can pay for my home, I have to help others pay for theirs through my taxes. To be honest, I do not agree with bailing out an industry that scammed people with questionable loans. I also believe that people need to be more responsible.

Now I am not going to just complain, I am going to offer better solutions:

• One way of helping to break this vicious cycle is to teach a financial class in high school. In fact, that class should be taught every year of high school on a graduated level. One of the best classroom curriculums I have seen is from Dave Ramsey.

• Next, for banks to be insured by the FDIC, they need to have very tough lending regulations in place. The American dream should not be to have a home. Every American should be able to pay off a home within 15 years with a $20,000 down payment. If you can not meet those terms, you are not ready to buy a home.

• Congress needs to get a clue - if they spend money to help people, they better be prepared to cut spending as well. If I need an emergency fund, why shouldn't the government have one as well?
  

Of course, I could be dreaming.