Newsweek: Spending Spree Over April 21, 2008Posted by pf in Expenses and Savings.
Tags: bailout, bankruptcy, debt, economy, GDP, mortgage, net worth, newsweek, spending, subprime
I came across the following article from Newsweek
Essentially, the writer outlines how the spread of credit created a boom in spending that had both positive (increased accessibility to funds for housing, etc) and negative (overspending) effects. Due to the current crisis and the generally indebtedness of our population, the author wonders if the era of free spending which generated significant growth not only in our own economy but for others around the world is over and what it may mean.
In my view – GOOD. I have waxed on about similar topics in the past where I have expressed concern about our country ranging from the dire state of personal finances (too much debt, too little savings) to broader topics such as the crisis we are facing with Social Security and Healthcare.
I remain deeply distressed and concerned about the path we are on and the recent bailout proposals for both businesses and consumers who have made foolish mistakes and may be saved via a taxpayer rescue only strengthen this view. WAKE UP.
McCain on Housing Fix April 7, 2008Posted by pf in Expenses and Savings, Taxes, Uncategorized.
Tags: bailout, Decision 2008, democrat, housing fix, john mccain, mortgage, ny times, republican, subprime
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Today I read an article in the NY Times entitled “McCain Rejects Broad US Aid on Mortgages“. In short, Senator McCain does not support many of the proposed fixes that are currently under consideration. As you will recall from my latest post “Housing Fix“, we are very much in agreement.
More fascinating, however, is Sentor McCain’s position on this particular issue has drawn a very stark contrast between himself and his Democratic rivals. Regardless of which side you may support, it is nice to see the clear distinction on the issue and allow us as voters to understand it and influence our voting choices. What is more difficult, however, is if you find yourself (like I think many Americans do), torn between various policies (ex: you are fiscally conservative, but socially more liberal) and no candidate is the perfect fit. Fortunately, for myself, I have no illusions about finding such a perfect candidate, but am looking forward to the general election where I will hopefully learn more to make my decision. In this particular instance, I am tallying up 1 point for Mr. McCain.
Housing Fix April 3, 2008Posted by pf in Expenses and Savings.
Tags: bankruptcy, federal bailout, foreclosure, homebuilders, housing fix, mortgage bailout, subprime mess, subprime mortgage, tax breaks, tax credits
Our federal government is moving at blazing political speed to finalize a $15 Billion band-aid to relieve some of the pressure wrought by the sub-prime mortgage mess. The potential provisions include the following:
- Tax breaks for home-builders (up to 40% of the $15 billion cost)
- Tax credits ($7,000) for purchasing homes already in or facing foreclosure
- Additional property tax deductions for those who do not itemize their tax returns ($500 single / $1000 joint filers)
- $4 billion for states to buy and rehabilitate homes
- $100 million for counseling of homeowners at risk for foreclosure
While I can appreciate the difficult situation our politicians find themselves in (they gotta do something about this if they want to keep their office, don’t they?), I remain generally opposed to the whole thing.