Bail out and bad economics

[motherof2]

I have always thought there really isn't much difference between stupidy and fraud.

Initial reactions to the bailout option shouldn't be held against either party ..they aren't thinking clearly due to the election.

Bernanke should step down if for no other reason than his proclamation several weeks ago the banks had a strong cash position. Since when do we analyse cash flow versus one's balance sheet, or expense summary. Every American know's you can continue making minimum monthly payments on your credit card (keeping the cash flow positive) meantime your actual debt is increasing ..and let's not forget why they called it COMPOUNDING to begin with.

I filled out two mortgage applications in the pastfive years. One before the recent changes and one after, I got approved on both if you must know that ...and since readers of FR are often curious ...it was for a second home. Here is the critical point...and pointing this out if painful as a Mom ..but must be said as an American. No where on the application does it ask how many dependents you have or if they require daycare , if the Mother is showing as having a job. yes, I realize there are the nightshift working nurses like my Mom that fall away ...but sound business analyse likes to catch the 80% ...the mortgage compaines that approved applications that were missing this critical and cumberson expense, couple with the over inflated values of the collateral did a huge disservice to the public. Obama was probably in the fraud line, McCain in the stupid line, and so I'll still stay with McCain to fix it, but fix it they must do and any serious reaction must be tempered until the FBI has concrete information. In the meantime they need to address the PROCESS of mortgage lending and fix all the gotchas , as some forementioned above. Grandma said your rent expense should never exceed 1/4 of your total income ...she and Grandpa survived '29.

[motherof2]

I have always thought there really isn't much difference between stupidy and fraud.

Initial reactions to the bailout option shouldn't be held against either party ..they aren't thinking clearly due to the election.

Bernanke should step down if for no other reason than his proclamation several weeks ago the banks had a strong cash position. Since when do we analyse cash flow versus one's balance sheet, or expense summary. Every American know's you can continue making minimum monthly payments on your credit card (keeping the cash flow positive) meantime your actual debt is increasing ..and let's not forget why they called it COMPOUNDING to begin with.

I filled out two mortgage applications in the pastfive years. One before the recent changes and one after, I got approved on both if you must know that ...and since readers of FR are often curious ...it was for a second home. Here is the critical point...and pointing this out if painful as a Mom ..but must be said as an American. No where on the application does it ask how many dependents you have or if they require daycare , if the Mother is showing as having a job. yes, I realize there are the nightshift working nurses like my Mom that fall away ...but sound business analyse likes to catch the 80% ...the mortgage compaines that approved applications that were missing this critical and cumberson expense, couple with the over inflated values of the collateral did a huge disservice to the public. Obama was probably in the fraud line, McCain in the stupid line, and so I'll still stay with McCain to fix it, but fix it they must do and any serious reaction must be tempered until the FBI has concrete information. In the meantime they need to address the PROCESS of mortgage lending and fix all the gotchas , as some forementioned above. Grandma said your rent expense should never exceed 1/4 of your total income ...she and Grandpa survived '29.