$168 Billion Further in the Hole
The stimulus package has been approved by Congress which means in 12 weeks or so we should be receiving up to $1500 of the government’s borrowed money! If we were good little consumers we would go out and spend it but unfortunately for the politicians and economists, our family will be applying it toward our debt. See, we already spent many years feeding the economy. We were good little consumers… a little too good if you ask me. We spent money we didn’t have and now we are being responsible little adults and paying back what we owe. No worries, once we are freed of those stupid monthly payments we’ll have more cash to play around with!
Congress Votes for a Stimulus of $168 Billion
Here is an interesting piece to the plan:
”In a nod to the housing problems, the stimulus plan will increase the limits on home loans that can be purchased by Fannie Mae and Freddie Mac, the government-sponsored finance companies, and on loans that can be insured by the Federal Housing administration. The one-year increases will make it easier to refinance loans or obtain new mortgages in expensive markets.”
There has been a lot of media attention on the crappy housing market and all the foreclosures. I don’t know how real it is in other states but in Michigan it truly is crappy. People are losing their homes to foreclosures because they bought houses they couldn’t afford. Here’s a solution! Let’s up the limits and make it easier for people to buy homes they can’t afford!!
What is with our bonehead government? Geesh. I think we need to send them all to Financial Peace University.
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February 8th, 2008 at 11:05 am
Hmmm…will I get this money that they can’t afford to give that is technically mine b/c I pay way too much in taxes…too?
February 8th, 2008 at 12:02 pm
Of course! As long as you aren’t one of those evil rich people who make too much money, then you get nothing!
February 8th, 2008 at 2:16 pm
LOL, I hope to one day be a rich person, but certainly not an evil one! From what I’ve read, most people should get something, but what you get depends on your income. What was really confusing to me was an exception they were talking about that reduced the payout for those families who received Earned Income Credit. But nothing in life is simple, especially politics. I’m pretty sure the original idea was something like “let’s give everyone $300″ …then came the restrictions and additions.
It’s great that they were able to work together and get this passed though, as my family will take whatever we get back and send it to our debtors too. This is going to push our debt-snowball ahead significantly!
February 9th, 2008 at 7:45 am
I’m so with you on this. Though it’s not a popular opinion to want to turn down free cash, I just think it’s a ridiculous idea. And, we’re doing the same thing as you—it’s all going toward credit card debt, so we won’t even be doing anything to “spur the economy.”
February 9th, 2008 at 12:19 pm
I heard a rumor – Mindy, let me know – that this is boils down to being more of an “advance” on next year’s returns, and not like the “bonus” it seems… Have you heard this? I heard from someone who said Dave Ramsey said it… ???
February 9th, 2008 at 12:40 pm
That’s just a rumor! Someone actually asked Dave Ramsey on his show and he confirmed that it was a rumor. I have been following this in the news and the IRS notices and have heard nothing indicating we’ll have to pay it back. (It’s more like you said… that they are technically giving us back our own money because we so much for taxes. We’ll probably have to pay it back indirectly when they raise taxes to cover their ginormous deficit.)
*I stand corrected* The plan originally called for a true rebate, but it looks like the plan that actually passed is calling it an advance. See the IRS website for ongoing details.
February 9th, 2008 at 11:44 pm
Why that’s EXACTLY what I’ll be doing with MY portion of the stimulus package…