Well, IMHO, all of this is just a way to give corporate CEOs that don't have enough brains to come in out of the rain, much less run a company, a great big paycheck to get out of the business. There is no way that any right thinking business person would have approved all of thosewithout some sort of greed coming into play.
If your mortgage debt is more than 30% of your income, you will have a hard time paying for it. If you have several mortgages, like for flipping houses, with adjustable rates, you will be just buggered if you can't sell them fast enough. Any bank that would give more than 2 mortgages to a single individual is just asking for trouble.
As far as I am concerned, the banks were asking for this by their own greed.
Now how does that affect the rest of us? Badly. The banks don't have any money to loan, so getting a loan for improvements like new fencing or upgrading that tractor will be tough. And the really bad part is that when a bank fails, businesses who depend on those banks do not have the operating capital it needs to keep the doors open. So there are fewer jobs. Fewer jobs means more people defaulting on their mortgages. Vicious cycle.
As to a bail out...hmmm.. .well, that is a tough one. Should we reward the banks who gave all of the risky loans in the first place? Should we bail them out so that businesses across the country can keep the jobs that we all depend on in the long run? Tough call. Personally, I think we should just suck it up and take the massive hit to the economy and rebuild it the same way we did after the Great Depression. I do not want my tax dollars lining the pockets of some Wall Street desk jockey who liked to play at short selling. And if we do this bail out, you can guarantee that our grandchildren' s grandchildren will still be paying this thing off.
Washington can talk all it wants about $700 BILLION but to them, it is just transfering numbers from one column in a spreadsheet to another column. It doesn't really mean anything. There is no actual transfer of funds. And the rich get richer. And we get to pay for it.