Should we punish the people who got rich from the inflated real estate market?
Filed Under (Uncategorized) by admin on 25-09-2008
Of course we should. Should that include municipalities? Yep. The rec center in Angleton is nice, but it represents a lot of property tax money collected by the city that wasn’t really there. I don’t use the rec center for reasons obvious to any adult who has been to a public rec center. On the other hand, with the extra money I have paid to the city behind inflated property valuations, I could have had my own hot tub installed at the house plus a home gym. or maybe bought a boat for some recreation on the water.
Angleton’s population has tripled in 40 years but the police department is about ten times bigger. Why? Too much money in the city coffers that wouldn’t normally be there if not for the inflated property valuations, that’s why.
The bottom line is that these corrupt bankers, investors, and borrowers along with government enablers have caused financial distress to everyone else at every level of society.
A common mantra I keep hearing on this bailout mess is that if we don’t act quickly, millions of people will be hurt by the looming collapse. Well millions of people, lets say three million, is just 1% of the US population. Several million people pale in comparison to the tens upon tens of millions who have literally seen their wealth dry up over the last five years or so due to the corruption in the banking industry and their government counterparts.
So let’s say maybe it’s 3% of the population at risk. Ten million people will be severely hurt financially if we don’t bail out the banking system. Well, if those 10 million people are about to lose everything anyway, maybe they could pitch in about $70,000 apiece and, according to Paulson and Bernanke and Bush, et al, that will protect their remaining assets as well as alleviate the need for the government to have to steal from fellow citizens in order to save their asses.
The people with the most exposure to the financial collapse should be required to sell a boat or a summer cottage or even borrow from the government at a reduced rate to come up with $70,000 as their fair share of the cash needed to fix the financial system seeing as they are the ones who broke it.
Here are a few things to ponder when considering the bailout:
- To pay for this bailout, everyone man, woman, and child in the nation will need to contribute about $2,333. For a family of four that’s about $9,300. Since only about half the population pays taxes, double that if you are a taxpayer.
- Responsible people who have at times had to cash in retirement funds to pay for living expenses, like keeping their mortgage up, will be required to underwrite the lavish lifestyles of those who made bad personal financial decisions. Even while I’m still paying the outrageous penalties for accessing my own money to pay my mortgage obligations during tough times, I am expected to pay even more to cover those who were irresponsible or just plain greedy.
- Those who have struggled to pay their mortgages due to huge property tax increases related to the soaring real estate valuations are now going to be required to pay even more to bail out the very ones who were driving up property values to fairy-tale levels.
Here’s an idea. How bout we make the bailout for $1.4 Trillion and give every tax payer a $25,000 tax credit.

