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BVC #18: It’s Better to Not Need a Bailout [VIDEO]

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Stimulus packages have become all the rage the last year! $7500 first time homebuyer loan, $8000 first time homebuyer credit, Making Home Affordable, $250 Social Security stimulus checks, Making Work Pay, … the list goes on.

I’m sure you’re upset… but watch this quick video and I think you might feel a little better about it.

I wanted to clarify something I said in the video – that foreclosures have been in the single digits. I meant the percentage of foreclosures, versus the total number of homeowners, was in the single digits (<10%). As it turns out, my memory was wrong... it's actually much less than that. Michael Barone of US News & WOrld Report wrote about the regional nature of foreclosures, citing a national foreclosure rate of 11 per 5,000 housing units. That’s only 0.2%! Even the highest foreclosure rate, Nevada at 66 per 5,000 housing units, is a “mere” 1.32%.

Then you have the 20% of homeowners who are underwater on their mortgage loans, which leaves 80% of homeowners unable to take advantage of the Making Home Affordable Program.

Either way, there are a lot more people not being helped than are being helped… and I’d rather not be drowning and need a life preserver. :)

{ 4 comments, please add your thoughts now! }

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4 Responses to “BVC #18: It’s Better to Not Need a Bailout [VIDEO]”

  1. Safeway Sage says:

    I also think that these programs have an indirect benefit of keeping that segment of the populace from revolting and making the crime rate go through the roof…

    As elitist as it sounds, I consider those programs to be a payment towards a steady, if not lower crime rate.

  2. Bob says:

    You are absolutely right on, any time you can avoid a Government hand out of any kind it shows you can do it on your own and gives you a sense of pride and accomplishment.

  3. Ron says:

    Thing is, the whole thing is not that simple. If it is, the banks won’t have enough money to support the housing industry and our economy won’t be so good the previous years.
    The way how the banks gave out loans, to ‘so-called’ support the housing industry, supported by wall st by mortgage bond package, which was supported by multiple layers of further bond packages, further supported by foreign banks in buying those bond packages, further supported by insurance companies who ‘guaranteed’ those bond payments, further supported by rating agencies in further ‘guaranteeing’ that the ‘guarantees’ made by the insurance companies is valid; is enough to freak me out.

  4. FlyFisher says:

    Depending on a bailout is never a good place to be. For one it is a self fulfilling cycle, and two you never know when it will be snatched away. good point.


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