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When EXACTLY is enough, enough?

By
Home Builder with Jesse Clifton & Associates AREC License #15292

Stop the bailtout insanity!The news de jour today is that the US Senate is voting on yet another proposed economic stimulus package.  Well, pardon me if I don't break out my pom-pom's and kazoo and shout hallelujah.  I actually feel more like sitting on the curb, putting my head in my hands and saying a prayer the Capitol will suddenly fall into a giant sinkhole never to be seen again.

When do we say enough is enough? 

"The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages..." from Bloomberg this morning.

$9.7 trillion!  Enough to pay off more than 90% of the nations home mortgages?! Give me a break!  We've already thrown countless trillions down the drain and yet we're no better off than we were before the first nickle was spent... some would say we're in worse shape.

We're borrowing against my grandchildrens generation... and at this rate their grandchildrens generation, to pay for a bill that will do NOTHING to stem the financial crisis. 

It all began with housing and any recovery efforts need to be laser focused on housing.  We can not and will not fix the financial crisis until the HOUSING crisis is addressed...

In the meantime our fearless leaders are focused on growing the size of the federal government and spending money like drunken sailors on shore leave.  Forget giving the money and incentives to small businesses... you know, those folks who are the actual economic engine of this country.

"I'm from the government and I'm here to help"  Yea, that's should work.

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Comments (106)

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Jesse,

Absolutely. that's why I even called my blog "Why Am I Stealing from My Grandchildren"

Rush, rush, rush, a clear sign that this is nothing more than a political stunt

Feb 10, 2009 03:27 PM
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

WOW -- we sure could spend a lot of money in the economy if we did not have mortgages!

Feb 10, 2009 03:35 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Jesse - interesting you quote Reagan!  I think the (non)"stimulus" package really will stimulate something -- inflation!  Count on it...  we are officially cooked.

Sounds like you would enjoy my most recent blog post...

Feb 10, 2009 10:17 PM
Linda Tremblay
Long & Foster Real Estate, Inc, PA License #AB065488 - Doylestown, PA
Associate Broker - Bucks County, PA Real Estate Services

I suppose you would prefer them to do nothing? Or perhaps do the same things that the Bush legacy did to get us in this mess.  At least they are trying to do something. Our republican senator voted for it.  He is one of the few in government that will go across party lines to benefit the country. Without a good economy, we will no longer be a powerful nation.  I am so sick of partisan bull____ on both sides of the aisle.

Feb 10, 2009 11:08 PM
Bob Mori
RE/MAX Right Choice - Trumbull, CT

I am not as concerned about the amount of money being spent as I am about the fact that I do not think in the long run it will do any good.  In dropping 382 points yesterday, neither did the stock market like what it was seeing.

Getting people jobs and not just providing work for them is what will solve the problem in the long run.  And yes, there is a difference between jobs and work.  J

Jobs are created when companies expand because of a growing market and when other companies and small businesses are formed.  Jobs are there for the long haul.  Employees in jobs see stability and start to invest in homes, cars, etc because they can see a future with their job. 

Work is usually short term and related to a contract.  Many people are hired for the duration of the contract, but once it is completed they are out of work and looking for another contract for which they can be hired.  There is no stability in having to jump from one work related contract to another.  When you have work and not a job, you are not as apt to invest in the economy of the country.

When we invest in the economy of our country, we create jobs, we create growth and we have a healthy and vibrant country.  When we create work, we put a temporary fix on the problem but not a long term solution.

So much of what I see in the Stimulus Package is work related and not job related.  What happens when all the contracts are completed and the workers are again looking for another contract?  Does that signify another potential Stimulus Bil three, four years from now?  Could be.

 

Feb 10, 2009 11:18 PM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Jesse - I think there has to be a huge change in the way Americans think or we will never get out of this mess...  The "large" lifestyles that many folks think they need and the fact that everyone thinks they can get rich quick and not have to work are leading us down a path to disaster... Working is what made this country strong, yet no one wants to do it anymore. 

Feb 10, 2009 11:32 PM
James Wexler
wexzilla.com - Scottsdale, AZ

famous last words, and it doesnt seem nearly as funny as it once is, "I am from the governement and am hear to help"

Feb 11, 2009 02:27 AM
Susan Mangigian
RE/MAX Preferred - West Chester, PA
Chester & Delaware County Homes, Delaware and Ches

Just popping back to tell you a funny story.  Sort of funny.  The unfunny part is that there is an arsonist going around Coatesville, PA, setting fires to entire blocks of row houses.  It's really a tragedy and we were discussing how we could help the displaced familes at the Chester County Women's Commission board meeting.  Someone, who works for the county, suggested that the people of Coatesville didn't need our help as many government agencies were already jumping into the fray to help out.  I raised my hand and asked if I might be cynical for a moment.  I got permission and then I asked if the government agencies were helping out as well as they did down in Louisiana during Katrina.  You could have heard a pin drop.  Oops.

Feb 11, 2009 02:32 AM
Julie Nelson
eXp Realty - Austin, TX
Smart real estate.

Well I guess they get to look at other failing economies over the past 10 years and see what those countries did to get back on their feet and cherry pick.  I am convinced that they have the most brilliant minds in the country assessing the options and solutions.  I agree $1 trillion is staggering.  The economic complexities of this thing are overwhelming ... it's like a biology ecosystem gone way out of wack and then it starts to implode.  We better have the most brilliant minds on this thing to stop the implosion and get the thing righted.

Feb 11, 2009 02:53 AM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK

Rebecca - I couldn't agree more. 

Shuki - We will survive... the question now is how long will it take us to recover from the poor decisions currently being made.

Morgan - Great plan but frankly I don't know how to emotionally disconnect from this mess. It's infuriating.

April - I agree... enough is enough.

James - We may not always agree, but your comments are always welcomed.  One thing we certainly agree on is that we could have and should have made much more progress in the alternative energy field. That opportunity was simply squandered.

Simone - We've been on the entitlement bandwagon for a while... and it's simply getting worse.  I agree... I'm looking forward to better days for the nation as well.

Maryellen - I'm one of many that think the war was mismanaged... but I also recognize the complexities involved.  Frankly, I really just have no faith that the folks on the Hill will get it right this time when they haven't managed to get it right yet.

Chris - I'm certainly not advocating that we don't address the issue... I just don't support throwing more money down a black hole. 

Regina - Where's it going to end?  That, my friend, is a good question.

James - "We're all investors in this now."  Agreed.  That's why making our voices heard is vital. Italy?  Come on, James.  Talk about a corrupt, inefficient government.  Those standard of living perks you mention come at a price... think nearly half of GDP.  That's the model we should follow?  No thanks.  I'll continue to be a proponent of a economic system that rewards hard work and innovation. 

Hugh - I would laugh at the "oh well, at least..." comment but I get sick every time I think about it.

Lorraine - A lot of alternate plans have been offered.... the problem is too many on the Hill don't believe in a free market even during the good times... let alone the bad. 

Jennifer - It will if we offer a realistic plan to get it back on its feet.

Doreen - Agreed.  I don't like down times anymore than the next fellow but capitalism is not the problem.  Big risks sometimes mean big losses... as I've said not everyone is leveraged up to their eyeballs... some of us were smart enough NOT to let greed override our common sense.

Jason - They're going to make something happen... the question is whether it will help or do yet more damage.

RM - Welcome back.  It was legalized gambling.  Too many folks signed up hoping to hit that short term 150% jackpot... others signed up not having any idea what they were doing, which was just as poor a move in my opinion.  "Best to let it fall..." I hate to say it but I agree. 

Jon - Stealing from our grandchildren is exactly what we're doing with these bailouts.

Paul - Isn't that the truth!

Jay - That's exactly what it's going to stimulate. I'll be by to look at your post.

Linda - I have no problem going across party lines... WHEN a common sense approach is put forth.  So far that hasn't happened.  Spend, spend, spend... or wait, that's actually, borrow, borrow, borrow isn't exactly a plan that inspires confidence.  I fault Bush for more than a few things, but he did not create this mess.  What I would prefer them to do is reduce federal spending, reduce waste and put the money and incentives into the hands of the folks who are the true economic engine of the country.  Big government has never been nor is it designed to be an economic engine.

Bob - I agree with you wholeheartedly.

Debbie - We are certainly at a point in our history where a good many have an overdeveloped entitlement mentality.  There's no shortcut to success, is there?

James - It's not as funny as it used to be, is it?

Susan Darlin' - Welcome back! A lot of things went wrong in Katrina from the federal level on down.  We should all pitch in to help our neighbors in need when a disaster strikes.  Hopefully the police with catch the little bugger setting the fires... and cook his goose. :)

Julie - It is a complex situation with no easy answers... but some obvious no-no's.  The good news is we do have some smart folks working on the problem... let's hope they prevail.

Feb 11, 2009 05:00 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I am happy for the $15,000 home buyer tax credit. Aren't you? I take it you don't like democratic presidents.

Elizabeth Weintraub Land Park Real Estate Agent in Sacramento

Feb 11, 2009 01:04 PM
Simone Bercu
Metro Referral - Palm Beach Gardens, FL
Not state specific Real Estate - GRI, e-PRO, AB

Got to respond to James. I do not like to place blame I always look for solutions.  I thought I stated that all presidents since Carter believed in making home ownership a major goal.  I do not see a blaming statement on Carter.

Second point, I live near the White House and I call to express my opinions regularly and did so for the last 8 years included. 

Times are not easy, but we will come out of this, too.

 

 

Feb 11, 2009 01:25 PM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK

Elizabeth - I thought they dropped it to $7,500?  As for democratic Presidents... I haven't been too fond of any of the last few occupants.

Simone - I agree... we will come out of this.  Hopefully we'll come out a stronger, more resolved nation.

Feb 11, 2009 03:48 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Yes, they did. But at least it's slated to be a tax credit and not an interest-free loan. I haven't heard if the time limit will be extended beyond July, but at least it should give home buyers an incentive to get off the fence. Plus, the loan limits may revert to last year's higher numbers, which would be a good thing. I'm always trying to find the silver linings in things, you know. :)

Elizabeth Weintraub Land Park Real Estate Agent in SacramentoElizabeth Weintraub Land Park Real Estate Agent in Sacramento

Feb 13, 2009 01:37 AM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK

Yes, you are... and I'm very happy about the things you mentioned.  It seems like the last I heard the credit was slated to sunset in July... but it would be nice to see it extended.  There's definitely some silver among the gray skies. :)

Feb 13, 2009 02:58 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Enough was a long time ago. This is snowballing, and gets uglier and uglier - both the market (real estate, stock, bond - WHATEVER) and the fixes for it. But, I know some first time home buyers who will be able to take advantage of the hopefully soon to be approved $8,000 credit vs zero interest loan, and some home builders who may be able to keep crews busy on affordable housing, so I'll put my blinders back on and focus on that for now. And when I can't ignore the chatter in the background anymore, I'll write more letter to my elected officials.

Feb 13, 2009 02:50 PM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

The sunset is to be extended through December 2009, so here's to a busy Spring/Summer selling season!

Feb 14, 2009 09:19 AM
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Jesse,

I'm sorry for being late to your party and have not read the comment stream so please forgive me if I re-state some things.

I am thinking that we are looking a one HELL of a debt that we will have trouble working our way out of well past our great-great grand children.  I think that if the government was serious about this whole issue they would have paid off all of our mortgages and that would put an instant surge of cash into the economy by giving all of us that additional $$$$$$$$.  Forget about bailing out the big businesses with no strungs attached and allowing them to go on high priced junkets and then bitc&ing about it.  they, the government, is creating a bigger fiasco by continuing on this path.

That's my two cents and it is quickly dwindling down to one cent worth.

Feb 14, 2009 10:17 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Jesse and Kathy- You got a lot of traction here, hit that nerve! You know where I stand on this!

Our country has the second highest corporate tax in the world.

People need to get a grip, it is not the lack of regulation, quite the opposite, there is too much regulation and not enough oversight. The more you strangle the corporations the more they are going to move on to greener pastures then the people who push them out can waive their pensions bye bye too.Then they can complain about how greedy the corps are because they left the US. Well, I run my biz on sound biz principles and profits, not socialist agendas.

Taxing people does not stimulate the economy. Take some lessons from California. Spending your way into stimulis does not work. Expanding government does not work either. FDR experiments were failures. California's second highest taxes in the US are chasing businesses and people out of that state. Plans were brought before as alternatives but Pelosi locked the GOP out of the sessions! For the 1st time in over 100 years of the house, only Nancy Pelosi changed to rules to not allow debate or discussion or changes by the minority party!

If Pres Obama would come out and just say that there will be a temporary lift on all Capital gains even just for one year- you would see a stimulis greater than this SPENDIMORE bill will ever provide. THe jobs have to be created in the private sector not the goverment sector.

There is even a roll back and spitting in Clinton's face with all the bipartison welfare reform he did while in office, all going down the tubes now in this bill. Clinton looks like a conservative in comparison.

And to all those that tout that the GOP lost and therefore we should just cave all the way into socialism - well- where were they to apply the same philosophy when Bush was in office? Protesting and hating, that is where. But we are supposed to sit by quietly while they bash Bush and then fully support the new President's socialist agenda. Sorry, can't have it both ways.

Pres Bush succomed to socialism and that was a sad thing. But now the young conservatives are waking up, there is movement, the new GOP reforming and we are going to have our voices heard.

Oh, BTW- For all the anti war protestors who support Pres Obama's campaigns- Did you just see that he is going to send 30,000 troops into Afghanistan ASAP???? Hmmmm, if Bush was doing that all heck would be breaking loose.

I am so proud of my young conservative sons who are now going to get into politics to make a difference, so are agents I know - 2 are running for GOP mayors of their towns.

This is going to have a silver lining! Conservatives are going back to their values and principles and young people everywhere are joining the party of entrepreneurship and small business.

Feb 15, 2009 02:35 PM
Jamie Boney
Mungo Homes - Columbia, SC

What a great topic to wirte about!!! I have to say the frustration that is the government is beyond me.  I have been writing and calling our government officials on a regular basis... Until we flood the phone lines and stuff thier inboxes and mailboxes with letters to let them know what we really want, I don't think we will be heard!

Feb 16, 2009 10:54 AM