Organizing for America | Sally Sova's Blog: Why Main Street doesn't like bail out.

Why Main Street doesn't like bail out.

By SassyOwl - Oct 1st, 2008 at 4:31 pm EDT

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The average worker is frustrated that they have been asked to take lower wages and higher healthcare cost while executives are getting huge bonuses and bigger exit parachutes based on stock performance, regardless of work performance. For Main Street to except a bail out deal they must feel that they are getting a benefit not just the executives. The reason we need a bail out is because of all the adjustable mortgages. One of the most effective ways to help Main Street is to allow for all the adjustable mortgages to be converted to fixed rate mortgages. The biggest problem with the credit market is not the value of the loans or the lack of available credit it is that as the housing market bubble started to deflate and interest rates started to go up. This means that as many of the interest only loans readjust payments to include principle, many trying to refinance and are now unable to due lower home value and new laws that say that if you are unable to make the future adjusted payments now then you are unable to get the loan. The problem is due not only to the homeowner who bought more house then they could afford but also the realtor and loan companies trying to sell a product to a customer that they knew they could not afford.

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