This financial stuff has me confused
I'm sure that there are lots of people out there who understand this whole $700 billion dollar bailout business, but I'm not one of them. Here's what I do know (and you can correct my ignorance with nice comments, i.e. don't call me stupid): 1. Our financial industry, particularly our lending agencies, are strapped for cash 2. They got this way from making risky loans (adjustable rate mortgages) to people who were screened well enough 3. All of this money that was now in play was thrown around in an effort to make more money (insert the word 'greed' here). 4. When these mortgage rates increased, people couldn't pay their monthly mortgage and many foreclosed on their loans. 5. Now these banks are out of their money and the housing market is in a crisis. 6. All of this - and I know my viewpoint is incredibly simple - trickled down to effect almost all areas of the financial market and, BAM!, we've got a mess. So the solution that the financial industry ga...