Crank that Soldier Boy

Gin Hahn,
T

Bailout, Rescue Plan, Wall Street, Main Street.

First off, don't ever come to me for financial advice. I'm not a numbers guy, I don't give winning stock tips, but I do tend to understand these issues and maybe can help you understand.

ABC News has a good cartoon explaining the current financial crisis.

Here is why its important to you and me. While it is widely unpopular to bailout wall street, this isn't really about bailing out wall street - its about saving main street.

Lets talk about fundamentals. Sure we can all talk about how the sub prime mortgages are the root of these problems. I agree - but sub prime mortgages are a cultural problem. Its not just wall street greed. Its your greed and my greed too.

You bought a house 10 years ago. It has more than doubled in value. You joke with yourself about how you would never in your wildest dreams pay what your house is now worth. But at the same time, you take out a HELOC on your house to fix up the kitchen, or buy a new car, or cover your living expenses.

The housing market starts slowing down, because others also think your home isn't what it was worth. Now, in effect you are a subprime borrower. You own less than 20% of your home.

I'm bored. Watch the clip - figure the rest out yourself.

Understand - this isn't just some greedy folks on wall street that have created this problem. Its cultural. Its part of keeping up with the Joneses that so many americans have bought into.

Buckle Down,

Loan me a few bucks,
Gin Hihn,
T