There isn't much to celebrate here in Kansas about the rescue plan that was announced last week. The program is designed to work on the big issues in the bigger states.
Here is Kansas, we don't have houses losing value at such a rate that people owe more than the house is worth. What we have is people who were sucked into second mortgages by sub prime lenders who lent up to 125% of the homes value. The program doesn't help those people.
We do have a few people who are current on their mortgages, but if the rates go up they might not be able to afford the payments, but if their credit scores are not high enough no lender will make a loan because the program is voluntary on the lenders part.
You want to know an ugly secret? the lenders who are still lending because they were conservative through everything leading up to this don't believe any of these borrowers need any consideration because they shouldn't have been made loans in the first place. My lender side does not disagree.
The people I really do feel sorry for are all the people who have lived solid financial lives. Had good livings out at the aircraft plants and are now being laid off. Most of them will be OK for six months to a year. If things don't improve by then, what will they do? These folks won't qualify for help because they aren't employed.
I don't want to be saying the program is bad. It isn't, it will help all those people in California, Nevada, Florida, Michigan and Arizona who are hurting. I just wish it would help the people I have sitting at my desk every day.