Bail Me Out! The Federal Bailout in Black & White
It’s the largest US economic intervention since the 1930s. But what does it mean to YOU, Joe and Jane America? The recent $700 billion federal bailout signed into action by President George W. Bush isn’t a cure-all. Here’s a brief explanation as to what it means on a big picture level:
- The bailout gives the US Treasury power to buy up toxic mortgage debt which has been choking the financial industry and would create a 700-billion dollar federal program to buy bad assets from banks and other financial firms.
For us? Potential stabilization in the credit markets, which means a possible return to better savings rates and more stable mortgage rates.
- The Senate raised the ceiling on federal insurance for bank deposits from $100,000 to $250,000 and added up to $150 billion in tax break extensions for middle class families and business.
For us? In light of recent bank failures, collapses, and acquisitions, it means we can keep more cash at one institution and be insured against bank failure. The tax breaks – let’s wait and see what comes down the pipe, but it could be favorable for the average American family (unlike the recent rebates).
- Congress placed limits on “golden parachute” severance payments to disgraced Wall Street executives.
For us? This means that Mr. Executive of Failed Bank/Financial Institution won’t be running away with millions of dollars that his employment contract might dictate in the case of him or her being “let go.” It means there’s a limit as to how much they can be paid in severance, especially if their institution benefits from the bailout.
While the real estate market still has its hills and valleys, our staff here at San Juan Realty, Inc. is happy to answer your questions. From our knowledge about the Ouray, Montrose, Ridgway and Telluride, Colorado markets to referrals to a credible mortgage, insurance, appraisal or title professional – your peace of mind is important to us. If you new to the area, swing by our offices and say hello and check the blog often for our regular listing of local activities and happenings and the latest in economic and real estate news.
There’s an amazing offer for the community from Karen Brooks, Broker/Owner of San Juan Realty, Inc. below. We believe in community and this month, we’re giving back in a way we’ve never done before!
Tags: CO, colorado, federal bailout, montrose, ouray, real. estate, ridgway, telluride
