It seems that Michigan's economy has spread across the nation. I know that the frozen financial market/spreading foreclosure/credit crisis is a huge problem to solve with no short term solution, but the government needs to keep working. I'm not necessarily a huge fan of the recently-rejected bail out proposal, but it's clear that the market needs to have some confidence restored.
We also need to do our part by not panicking and being personally responsible with our finances. The banks lent all that money to people. We can't just blame the banks for wanting to make more money. We're the ones who asked for it.
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The nbanks were required to lend the money by law. In 1991 Clinton signed into law a bill to require less restrictions for poor people or the lower class. No more could they be asked for a down payment and then in I think 1999 we allowed them to add into the loan, closing costs and down payment. Once you had nothing to lose why not just walk away. This was also the sub prime mess lowering the interest rate so that more and more low income people could get loans that they couldn't repay. I know I say it all the time but the government getting into the mix really screwed it up. If people can not afford a regular loan at and regular rate they should rent or do as I did for my first house buy it for $20,500.00 and fix it up. That's called sweat equity and it works.
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