Oct
01
2008

$700000000000 bailout

Wendy and I have spoken on frugal living, and we’ve been emailed asking our opinion on the top news of the $700bln bailout. Since we are the parents of 14 children (soon to be 15), a most natural question is “how can you afford it?” Our lengthy response is in our product “Cheaper by the Baker’s Dozen” where we outlined strategies to frugal living. Really, it stems from a basic understanding of economics, basics I learned getting my MBA and we both have learned as small business owners.

The current Wall Street Bailout that is struggling to pass the House of Representatives is being touted as needed, claiming the current situation in the markets is the worst since the Great Depression. Correction: it is the scariest SOLUTION to economic hard times since the Great Depression, but it is not the Great Depression.

While most people (including politicians) find economics complicated, there really isn’t much to understand. First, let me say, that $700bln is very close to a TRILLION, an incredible amount of money. Our government has NEVER spent this much money on ANYTHING, including defense (see this chart). There are approximately 140 million taxpayers in the United States. $700bln could cut a check for $5,000 to each of them. It is absolutely horrendous that the President, the Speaker of the House (who, by the way, today got busted funneling money from her PAC to her husband), and both presidential candidates are unanimously saying this bailout should be quickly passed.

Second, the bailout isn’t bailing the taxpayer out. This is the infuriating thing, for this is how it is being packaged by Washington. This $700bln is taxpayer money to bail out rich banks and irresponsible mortgage lenders. Banks are businesses, and when businesses fail, they should fail. These banks can file bankruptsy and get out of the market–let the government “bail” them out that way. But why should taxpayers pay their bills so that they can continue to make the same stupid financial decisions they made to drive their businesses into the ground?

Third, economists have been crying wolf about this for several years. When lenders are giving $250,000 second mortgages to people who don’t have jobs, it doesn’t take a financial genius to figure out that foreclosures are in their futures. Our politicians (the ones who are so quick to spend our money) want to bailout Fanny Mae and Freddie Mac so that they can continue? Follow the money, folks. The FMs have donated millions to these politicians, and is it any surprise that the leaders of the bailout are the biggest recipients? Christopher Dodd, Barack Obama, and John Kerry are the TOP THREE RECIPIENTS of FM political donations since 1989. This is a conspiracy (see here).

There is no doubt in my mind: this government bailout is a politically driven atrocity that will socialize our economy and set politicians up to be the drivers of Wall Street. American taxpayers are seeing through the haze and letting their politicians know that this is unacceptable.

About Chris & Wendy Jeub

The Jeub Family live in Monument, Colorado. They encourage couples to love God and love one another, building an atmosphere of love in their homes.

  • Angie

    Amen!! Have you ever considered running for office?! Congratulations on Baby 15!

  • http://www.homesteadblogger.com/preciouspeas Michelle B.

    My husband is saying exactly the same thing. I don’t understand how the government can see this as a good thing. Congratulations on Baby 15! We are praying for your family.
    Blessings,
    Michelle

  • monica

    I agree with Angie. Chris you are exactly the kind of statesman we need in Washington. We need to get rid of these politicians and elect stateman. Thanks for your newsletter and your family. You and Wendy are truly an encouragement and a great example for others.

  • Sarah F.

    You have just given the best summed up version of the “bailout” that I have read. With several children, we are worried about the state of the economy as many American’s are. Congrats on baby #15!!
    Sarah

  • http://www.creatingtreasures.blogspot.com tereza crump aka MyTreasuredCreations

    My husband says exactly the same thing. As you said, it’s basic math!!!! It’s ridiculous. If any of us, got into a situation like FMs’ the government wouldn’t bail us out. No one would side with us that the government should bail us out. why should we bail them out?? they are such big corporation, they should be smart enough to figure some basic math and not make the dumbest decisions they made. It’s ridiculous!!!

    Due to fear there are many Christians siding with this bail out… we move by faith not fear!!!

    and Congratulations on Baby 15!!! :)

  • http://www.crumbsonmyfloor.com crumbsonmyfloor

    Well said. Jeub’s for Congress!! :o)

  • http://heartyworks.blogspot.com Paula

    Dave Ramsey actually has a plan to avoid this AND to contact your senator and tell them to vote NO to NOT pass this crazy bill!

    http://www.daveramsey.com/etc/fed_bailout/3_steps_to_change_the_nations_future_10928.htmlc?ictid=sptlt

    Thank you SO MUCH for speaking up on this issue!!

  • Shelley

    We lived like most Americans do – make $10, but spend $15 for a VERY long time. We were chasing after the “American Dream” and going broke. We had a friend tell us that we could declare bankruptcy and it would all go away. We hired a lawyer and everything, but at the last minute my husband said, no we are responsible for these debts and we are going to pay them. Soon after that someone at church invited us to a seminar that changed our lives. We paid our debt (almost $43k) the old fashioned way. You know, month by month. Our new goal is be able to give away more than we keep for ourselves. For the last 5 years we have learned to live well under our means. No, our kids don’t have name brand clothes, and I have been told I am very frugal. Can’t these companies do that too? Anyway, I appreciate your family and the testimony for the riches that can be stored in Heaven where moth and rust do not destroy. Congratulations on #15!
    Blessings,
    Shelley

  • Wanda

    I agree they should not be bailed out.
    Thanks for the link to the chart of were the tax money goes.
    I noticed how little is paid towards the justice system. You would think with a country the size of the US that it would have a bit more of funding and focus. No wonder there are shootings in the schools etc., and criminals sitting for years before they go to trial.
    Blessings
    Wanda

  • Debra

    I agree! Congratulations on the 15!

  • Deanna

    I really appreciated your simple explanation. It just doesn’t make sense to spend more, when there is such a debt to begin with. I think I’m still overwhelmed by two, or three upcoming propostions on our CA ballot. I know,..it’s CA! One prop wants to make it mandatory for farmers to give chickens and other animals more room to roam…before they are killed..saying “Animals need to be treated humanly”. The other prop is trying to make it mandatory for parents/fathers to know about a pregnancy before the baby is aborted. One is fighting for the right of a chicken, the other is fighting for the right to let a child live. Now, I ask you…where is the logic behind comparing these two ballots?? Hard to swallow, and yet as our pastor says, “either people have the Spirit of God, or they don’t”. May we be lights to a very dark world. Thanks for your insights!!!
    Praying for you,
    Deanna :)

  • Jennifer

    Thanks for this great explanation. It all makes sense now. I enjoyed watching your special the other night (again)!!! HUGE CONGRATS on the new baby!

  • http://www.myspace.comhalfpint7698 Carol

    Shelley; what seminar did you go to?
    Amen Chris! When I worked as a mortgage lender I saw the kind of junk the FM was wanting us to approve, it didn’t make any sense to me at all! Thank God the bank I worked at was very conservative and we didn’t do any questionable or sub-prime lending, we went by the old-fashioned way that if you can’t afford it, you can’t have it! (at least not from us)I can’t believe this is happening in our country.

  • http://www.myspace.comhalfpint7698 Carol

    Congratulations on baby #15, best wishes for a healthy pregnancy!

  • ElvaJean

    Thank you for an insightful piece regarding the $700B bailout!

  • Nellie

    Thank you for giving me information on the bail out that was informative and easy to understand.

    God Bless you and your family!!!

  • Valerie

    Very insightful, and I must say that I LOVE Cheaper by the Bakers Dozen. I must have listened to it about 10 times (seriously!). Wendy is so witty and funny. You guys seem like such a great team.