McCain Stupd; We're In Trouble; Not Young Folks

Robert Reich on McCain's housing plan:

John McCain last night came up with the stupidist plan I've heard yet for doing so. He wants the government to buy mortgages from the banks at face value and then write down the principal for homeowners. This would be the biggest handout yet to the financial industry. Taxpayers would take all the losses, including the downside risks of additional defaults if houses drop further in value, while the banks would get off scott free.
Reich on the bailout:
The easy answer to why the bailout hasn’t worked is it hasn’t been implemented yet. But its purpose was largely psychological...

This isn’t a liquidity crisis. It’s a crisis of trust. Lenders don’t trust that borrowers will be able to repay, because they don’t think borrowers will be able to collect on what’s owed to them. Every major player is moving to safer ground – holding money, hoarding it, putting it under a giant global mattress.
Me on being young:
Stop worrying about your 401k if you still have 10+ years until retirement, and you're under 35 years old you're golden. The market is going to go back up -- it always does -- and in the meantime you have the option of getting in when prices are low. If you don't believe me that things are rosy if you take the long view, read this (or at least look at the charts).
(Three cheers for efficiency in blogging!)

Thursday, October 9, 2008

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