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How are we supposed to survive in this falling economy?
How are we supposed to pay our debts with this economic crisis? Finances are getting tight and it's getting harder to pay our bills. The government will bail out business but what about the American people? If these businesses fall, like WaMu and Wachovia, what about people that have loans with them? Why are we paying back our debts to them if they no longer exist?
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Worry about the necessities of life first, then do your best to pay your bills. If you can't pay them, then don't. If enough people end up in the same situation, the government will be forced to help you.
I expect this recession to last 1-2 years at most. The proposed bailout was defeated in the House, which is good. It would have destroyed our economy, and extended the recession.
The companies you pay your debt to still exist. They will soon be owned by other companies, and you will be paying them. No action should be required on your end.
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Those lucky enough to have a job just
muddle along like they always have. I
think they will hammer out a plan to
bail out the banks soon. But people
still need to wake up. Learn to live
within their means.
The Government almost has to bail out
the banks to HELP the American people.
I think we all would rather they sink or
swim, but letting them do that would
cause even more problems.
Example..My husband works for Goodyear.
Last week (maybe still) banks froze
all credit. Big company's like Goodyear
and GM couldn't get into thier money
market funds. Those are funds they use
for day to day business expenses and
more important for us..payroll. They
had to get a quick loan for it and it
worked out...this time. If banks go
under, they wouldn't be able to get
loans. Big business and small business
will start to go under. More people
will lose jobs or take dramatic pay
cuts.
So, that is the ONLY reason they are
helping the banks. In the long run,
they ARE helping the people.
Now some will still lose their houses
or try to sell them and go to more
affordable places. The reason is that
banks were giving loans and credit
cards to people who really couldn't
afford them. They will now have to
pay all that back and it will be a
hardship for them. Money is still
owed regardless of weather or not
a bank failed. Those loans are bought
up by other banks or the government
will take over those loans if they
bail a place out. They may help some
people refinance, but the money will
still have to be paid back.
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Well, I cannot say anything about how one is supposed to pay the bills. The reality is that in every economic recession there will always be some people who will go broke. The more severe the crisis, the more poor people. This is why when times are good, its so important to remember to save for a rainy day, and to keep in mind that the status quo never lasts forever. This is not a lecture mind you, I have blown my finances to hell over the years...
Bailing out the American people and bailing out the businesses kind of goes hand in hand. The government hopes that by bailing out the businesses this will help alleviate the recession. This in turn will have a positive effect on the people.
Normally when a company goes bankrupt its assets are seized by its creditors. Essentially the people that the business owes money to, get a portion of whatever they have left. These assets include cash, inventory, stocks, trademarks, and so on. It will also include the loans that people have with them. So these loans will very likely be transferred to another company.
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