The Wrong Step in The Right Direction!!!!

Ladies and Gentlemen,
Congress has done their part and it is now up to the Senate to pass the stimulus package.
To be honest, I am not one for bail out programs, but the U.S. consumer needed this!
We can expect home sales to increase in the next 10 months after the passing of this package.
Debt consolidation will be on the rise and expect foreclosures to stabilize.
Note, this is only one step in the right direction. I would expect tighter lending policies and requirements in the up coming year.
I would expect the Fed Fund Rate to decrease another 50 bps and the Federal Commercial Banks Deposit Requirements to decrease to easy lending to the consumer. Over all, this can bring stability with incremental growth. I believe we are at risk of possible drastic economic volatility from uneducated consumer borrowing.
I would welcome restrictions with second lien loans on the new FHA loans to minimize exposure to high Combined Loan To Value (CLTV) Rates.
Further, the overall package may shorten the recession that I believe we have started last month. With proactive actions from Congress, Senate and the President, we could expect housing stabilization by Nov 2008.
Reevaluation of credit card management would be next concern as consumers consolidate or reduce credit risks.
As we take a wrong step in the right direction, I believe the rebates will have a marginal impact to the economy. Though, I believe it will psychologically build confidence. Small businesses will benefit significantly from this package (FYI, SBs continue to 80% of businesses in the United States) but the most important part of the package is the FHA mortgage adjustment. For the first time, I can say that the bipartisan efforts have demonstrated a positive impact to the American consumer. Though, this could easily backfire, only if the proper mechanic isms are not put in place. Time will tell how this will impact America!

Tentative Deal Reached on Economic Stimulus Package - washingtonpost.com

Big Ben takes action but still not enough! IT IS TIME FOR A BAILOUT!!!!!!!

Wow, what a day!
From a low of 460 point and a close of 140+ points down for the day!
I hate to say it but I do not think we are at the bottom of the market.
We need to hold on tight and hope for the best....
At this point, 75 bps cut was a bandage to stop the bleeding.
America, this is a dark day for our economy! I hate to say it but it is time for a "Bail out!"
Yup, we are heading towards a bail out for the American consumer! Homes are not going to appreciate, debts are not going to disappear and fear for the U.S. economy are not going away until U.S. Sam comes in for a bail out!

Fed's Rate Cut May Speed Rebound by U.S. Economy - Economy * US * News * Story - CNBC.com

Where is George Bailey when you need him?

Oh dear readers,
I wish I had some good news to share for the New Year!
Citi Group, Wachovia, and other financial institutions are announcing HUGE loses because of the credit market.
Angelo Mozilo is getting a exit package over 110MUSD from the sell off of Country Wide.
Imagine how many homes could be saved with 110MUSD! Instead Mr. Mozilo is going to Aruba and work on his tan!
This is just one CEO! Google "CEO Exit Packages Credit Crunch" and I am sure you will find a few more CEOs!
If we were in Bedford Falls, would George Bailey take an exit package? I think not!
We are in a serious economic crisis and I am hearing people talking about their pain on a daily basis!
Good people with good values trying to do the right things in life are not able to survive!
A recent survey from CNBC showed the top four issues in the U.S.
1. Housing Market
2. Oil/Gas
3. Credit Market
4. Rising Costs

And lets not forget the Federal Reserve Bank.. Mr. Bernanke did not create this mess, but he did take the job of being the Chairman. So, lets act like the leader of the strongest banking system in the world!!!!!
Work with the banks in establishing a stable lending program with commercial banks to help people in the housing market. This is more than a housing market problem. When people lose their homes, they lose a lot more. Families get destroyed!!!! You do not need to be an economist or review historical data to understand the impact of a family losing their home. Imagine losing your home. People must feel like they failed, loss of pride and loss of dignity. The situation is beyond the housing market! The situation effects everyone's community!
All this talk about inflation, recession and stagflation are outcomes of bad decisions.
The Fed needs to step up and take action and make the decisions that will stabilize the housing market... Not because it will help the commercial banks! Because it will help the American People who have worked towards a better life!

My question to the CEOs of America (especially the commercial banks), Mr. Bernanke, Congress, and the President, "what would George Bailey do?" As times passes on, more American families are falling apart!!!!!

To my readers, It's a Wonderful Life is a fantastic movie that reminds us the important things in life!!!!!!!

Economic Stimulus Package Gains Traction in Congress - Economy * US * News * Story - CNBC.com