And dangerous too. Every step from hereon is fraught with danger. And whatever is dangerous is exciting too. Exciting? You might say that I’m drawing pleasure and excitement of other’s plight but no, I’m not drawing any pleasure or making fun of anyone. I’m just trying to live this one the way the I always have lived my life. I have enjoyed the excitement even when chips were down in my life. But this is not about me. It’s about America and Americans. So lets keep it that way.

The question is- What exactly is this deal? What happens to the common man now? What’s gonna happen to millions of people who have mortgages and are lagging behind in payments? Are there some answers to these most obvious questions? Actually there are and they are not very heartening, I’m sorry to say. Let’s see one by one.
First things first. The bailout of $700 billion does not mean that there would be $700 billion available in the market for anyone to pick. It’s not. This $700 billion would be given in three parts. The first $250 billion would be available right away. The next $100 billion will come after Bush sanctions it later and the rest $350 billion comes after an analysis has been carried out by the Senate of the way the previous $350 billion have been spent. And there are whole lot of stipulations the way this money can be used by these guys. So it’s a pretty long drawn affair. And the respected Wall Street has shown it’s disapproval by tanking nearly 2% as I write this post. It may recover but I don’t really know. Overall it’s not as exciting as it looks. And to confirm my doubts there are reports of quite a few of protests in America against this. And may be rightly so. You see there are so many stipulations attached that the lending institutions are unlikely to get excited. What I mean is that it will still not be easy for people to get loans, for anything. And $250 billion dollars are just about peanuts for a multi trillion dollar economy. And that defeats the whole aim of this deal. There’s no freedom. None at all, for anyone involved. Yeah, I said it. That’s the whole problem with this bailout stuff, according to me.
Now, will there be any relief for people with existing loans? Unlikely. Although, the whole thing is not very clear right now. But what I can say is that at least in the near future there doesn’t seem to be any relief in sight. Why? Because the securities which contain the risks of these mortgages have been bought both by the govt as well as other investors. And so the govt will not take any more risk with the taxpayer’s money than it has already, unless the value of the underlying investment (the mortgaged houses, that is) increases. And this increase will take it’s own sweet time because the new loans will not be very easy to come by. It will but it’s effects will not be seen in the near future.
And as far as the common man is concerned, there’s not much relief in sight either. The Wall Street will recover but very slowly. Very slowly indeed. As regards inflation, it’s not gonna get any worse. Some of you might say that I’m sounding like an authority or a guru on the economy. And if I’m that good why don’t I give a better solution? Well, unfortunately I’m neither a guru nor do I have a quick fix solution to these problems. I’m just stating the obvious here. Instead what I do have is hope in my heart and a prayer on my lips that things improve as quickly as they can. I can do only so much. I’m no God. Forgive me people.

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Posted on September 29th, 2008 Track the world • Tags: $700 billion, america, Americans, authority, Bailout, Bush, common, deal, economy, excitement, guru, inflation, investment, investors, Loans, man, MARKET, mortgages, payments, pleasure, prayer, Protest, recover, securities, Semate, solution, taxpayer, Wall Street. • RSS 2.0 feed • Leave a response, or trackback