What a week ! We ended the week with a bang when news last night of Washington Mutual was seized by federal authorities as JP Morgan Chase takes over. There was a flee of deposits as customers worried about the banks solidity, and their capital base was eroded, making operations impossible. Buyout at a rock bottom 1.9 billion. That is a bargain for the buyer. The rest of the week has been consumed with the news of the ‘bail out’ and the looming debate. CNN even has a countdown until showtime.
Rates this week are UP. That is because there is uncertainty. BAD news for the market. We need warm fuzzies, reassurance everything will be ok. Reading the paper this morning did not help. I had flashbacks of my childhood days when I used to pride myself on tattling my older sister, or my baby brother. I am the middle child, the know it all, the perfect angel (I really was). I would not stop until I got my way. I WAS SEVEN! Our elected members of Congress are grown men and women. Are these discussions /arguments about a bail out really about what is best for America, or which party will look better on the eve of election day?
My final commentary is this: I am an optimist, always looking on the bright side of things. These days, that has been hard, where bad news looms everywhere. But there will be good that comes from these historically troubling times. Imagine a society that saves first, then spends. Taxpayers that actually pay the taxes on income they earned and not what they cannot hide. Or even homeowners that have property taxes based on the true value of their home, not a deflated, unrealistic amount. DON’T SHOOT YOUR BULLETS AT ME YET! You see, I am a firm believer that things will come back to haunt you. Why is it that rules apply to everyone else except us? We want full price for our homes, yet we have fudged about our values for years to the county? I myself am guilty of all of the above too! But there has to be balance. It is high time that our society owns up to the fact that we have to practice what we preach to our children: Always tell the truth, save ½ your allowance in the piggy bank, share, don’t hit and say please and thank you. Hang in there. We will get through this together.
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