Kyle and her husband moved to Brookfield in 1986. She became active in local politics and started blogging in 2004. Her focus is primarily on local issues but often includes state and national topics, too. Kyle looks at things from the taxpayers' perspective in a creative, yet down to earth way, addressing them from a practical point of view.
Our present market woes and the Freddie/Fannie mess did not come out of nowhere. They are not George Bush's fault. They started a l-o-n-g time before either Bush. Watching the house burn down: What caused our economic crisis? gives a good run down of the chain of events leading up to this crisis.
First thing this morning, I checked to see if Rep. Paul Ryan and Jim Sensenbrenner were on board with the bailout bill. If so, then I felt it might shore up the market with the least harm. Thankfully, ACORN funding has been removed from the present version.
The House Bailout failed to pass 228-205. Seems Pelosi gave a pre-vote speech that did not warm the hearts of Republicans by blaming Bush for all of this. Democrats were not enthusiastic either. Democrats against: 95, Republican NOs: 133. Wisconsin Representatives voting NO: Jim Sensenbrenner - R, Tom Petri - R, and Steve Kagen - D.
Roughly 4/5ths of Americans do not favor a bailout, which is why democrats were hesitant to sign on. Some want the free market work as in Citibank buying Wachovia today.
The market closed at 777 points down today. The price of oil went down to $96/barrel, gold closed up about $8 at $898/oz. One thing saving our bacon is that world wide markets are jittery too. If you are a foreign investor, who do you trust with your money? Don't know how long foreign investors will stay with us though.
I have no idea what is the right thing to do regarding the bailout bill. I think Ryan voted for because he knows this could go way south.
At the very least, it is time to put an end to no money down and little money down mortgages!
Vicki McKenna talked today on her radio show about how she* is in the process of buying a home. When she first started looking months ago, she was told she needed 20% down. This is consistent with what a Realtor friend told me--that people were getting mortgages if they had 21% to put down. But now Vicki was told she could get a mortgage for 3% down, if she did it before the end of the year!
I believe the little or no money down policy of the Community Reinvestment Act started us down this fiscally irresponsible path. Without the cushion of 20% down, for those times when home values falter, these no/little money down loans became upside down.
So the American taxpayer is asked to bailout out the lenders, and Congress is drilling more holes in the boat by not reforming down payment requirements? Pretty typical.
PS Did you see that the House passed a $25 billion bailout for automakers?
*CORRECTION: It was not Vicki herself, but someone in her building. The point remains the same regardless who got the loan.
Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.
Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin, Vicki Mckenna