The Hammond Report

Generally, you have it right, although your neighbors will not escape completely unscathed. They will be reduced to a subpar economic existence, probably for the rest of their lives. They will never again be able to live high on the hog because no one in the private sector will lend them any money. What is more, like any welfare recipient, they will find themselves answering to a government that has gained a large measure of control over their lives. And that is the worst loss anyone can suffer.

This is how I understand it and maybe I'm wrong.

You are. Do you ever intend to actually read anything about the «bail out»"? 'Cause you've got it all wrong here, Andy.

Thus spake the retail clerk.

Gimme a break.

You don't sound pissed. You sound like you are gloating over your neighbor's mistake/misfortune, while preening with self-righteousness.

Good for you for making smart choices. But shame on you for your ignorance and pride.

Butters, you seem confused by this bail out. I will help you.

Wall Street is a place far away from Missoula, where business men and bankers work. What do you think they do at work? Go ahead and shout it out when you know the answer!

Buy and sell debts? You got it! Well, a lot of those debts are bundled all up together and some of them have gone bad, just like your irresponsible neighbors. Maybe you have heard your mom or dad say 'one bad apple spoils the bunch?' Well, that is what happened here, a small percentage of the loans are bad and so other business men are afraid to buy any of them.

Maybe you have heard talk of the 'bail out'. That's a big word, say it with me 'bail-out'. Good. What the 'bail out' does is enables the Government to go and buy those bundles that have some bad apples in them. That way the business people on Wall Street are not afraid to buy and sell debt anymore.

What about your irresponsible neighbor? Nope, it wont help him at all. It will only help the big business guys on Wall Street by removing their risk and lowering their taxes. What? Will that provide incentive for the business men on Wall Street and lenders to make responsible loans in the future? No. Don't worry Butters, you will still have losers to gloat over!

Now, you go play and don't be worried, your neighbor will get what is coming to him and his kids.

What just happened?

yep...help for those who need it most...rich, big business, wall street...yay! check out this website...it has a forum to put thoughts, opinions, how this bailout and the economy is affecting all of us. they'll be on our side against the wall street bully. http://www.friendsoftheuschamber.com/email/wall_street_3.html. check it out.

The average american with a credit file has $16,635 in credit card debt. They got maxxed out there, but they found they could borrow more since their house value was extremely inflated. Having that second mortgage got painful when the bubble in the housing market worsened. They now found themselves «upside down» in their loan. They owed more than their house was worth. Now all that living beyond their means has come home to roost.

Banks and loan companies have a good share of the blame in this mess. They indiscriminately wrote loans and dispensed credit freely. Both Democrats and Republicans in Washington encouraged this risky activity through more institutions than Freddi Mac and Fannie Mae alone. Easy credit terms and an apparently ignorant and foolish public made for a bad combination. Ultimately, it was the fools who signed on for the credit and couldn't pay who are most responsible. I won't gloat that I am not among this group, but it will be difficult to feel sorry for those who get thrown out on the street. I have ZERO credit card debt, two paid for cars and have paid 3/4 of my mortgage off. I have some money in the bank as well. Looks like I might need it in the future. I'll get to suffer with the rest of you in the coming tough economy.

I get it. People that were responsible get nothing. Those that were greedy and wreckless are being rewarded. I don't spend more than I make -- never have, never will. Yet, I'm really worried about what is going to happen -

I was taking this survey the other day and it made me realize how much anxiety I have about the condition of th economy. . .

http://www.friendsoftheuschamber.com/takeaction/index.cfm?ID=33

. . .I think this gets worse before it gets better. . I hope I'm wrong.