In changing times with a very volatile economic market, the impacts of the “bailout” prove that our national financial system has been tarnished but the hope for repair is the result of the country’s ability to stand up and fight through the turmoil. The economic repercussions of the “bailout” while, hopeful, may still not be enough to help our housing market recover from the immense distress we face as a nation. However, with the economy in such a difficult place, it seems that there is no other quick immediate solution to save what is left. The market is oversaturated with listing inventory and this “bailout” will hopefully deplete the mass housing for sale. In a buyer’s market, it is critical to move inventory quickly to stabilize the market conditions so that prices can equalize. The rescue plan will provide solutions for distressed home-owners and possibly even save the mass thousands out there who face foreclosure. Even so, the possibility of resolution from financial destruction is very real for the mass public so the immediate effects of the “bailout” may not impact the majority population who is suffering and losing their homes. It is hard to really predict the consequences of this emergency plan but the fact that our national governmental body has stepped in is a significant indicator that our country is in some pretty significant trouble. Our best bet is to listen closely, assess our personal situations and consult professionals who can direct and advise us to a better place. This economy and this market should correct itself and now with a helping hand should put us on the path to recovery. Who knows, this may be the case or this may just be the beginning. Regardless, our confidence should rest in our own decisions based on our own personal scenarios. While we depend on our country to do the right thing, the only final judge of that is ourselves.

Regard to our shifting market,

Helen Oliveri

NEW YORK (CNNMoney.com) — After two weeks of contentious and often emotional debate, the federal government’s far-reaching and historic plan to bail out the nation’s financial system was on the verge of enactment Friday.

President Bush, speaking less than an hour after the House voted 263 to 171 to pass the bill, is expected to sign it later Friday.

“By coming together on this legislation, we have acted boldly to prevent the crisis on Wall Street from becoming a crisis in communities across our country,” said Bush.

The House vote followed a strong lobbying push by the White House and other supporters of the bill. The House rejected a similar measure on Monday – a defeat that shocked the markets and congressional leaders on both sides of the aisle.

The legislation, which would allow the Treasury Secretary to purchase as much as $700 billion in troubled assets in a bid to kick-start lending, would usher in one of the most far-reaching interventions in the economy since the Great Depression.

Federal Reserve Chairman Ben Bernanke said he welcomed the House vote. “The legislation is a critical step toward stabilizing our financial markets and ensuring an uninterrupted flow of credit to households and businesses,” he said.

Treasury Secretary Henry Paulson said he would act swiftly but “methodically” to carry out the plan.

“The broad authorities in this legislation, when combined with existing regulatory authorities and resources, gives us the ability to protect and recapitalize our financial system as we work through the stresses in our credit markets,” Paulson said.

RISMEDIA, Oct. 2, 2008-(MCT/RISMedia)-In an historic vote, the Senate approved a massive $700 billion rescue plan for the nation’s finance system Wednesday night, but only after tacking on another $110 billion in tax breaks to lure votes from both parties.

A strong bipartisan majority rallied behind the controversial Wall Street bailout package, passing it by 74-25.

The vote sends the measure to an uncertain fate in the House of Representatives, where lawmakers rejected the original version on Monday, 228-205. A new House vote is expected on Friday, and many lawmakers in both parties there remain opposed to it.

President Bush, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke have warned repeatedly that failure to pass the legislation would lead vital credit markets to seize up, forcing employers to lay off employees, plunging the economy into recession and perhaps even another Great Depression.

Senators of both parties, including Democratic presidential nominee Barack Obama of Illinois and Republican presidential nominee John McCain of Arizona, said that threat made it imperative for Congress to pass the financial-rescue package.

“Inaction is not an option,” said Senate Majority Leader Harry Reid of Nevada. “This is-I repeat-a crisis…We’ve got to get this done.”

Senate Republican Leader Mitch McConnell of Kentucky agreed.

“The question is not how we got here, but how we get out,” McConnell said.
Not all senators went along.

“Action is clearly needed to return stability to our financial markets, but most importantly, effective, sound action is needed. To fix the markets, we must deliver a market-based solution, not a government bailout,” said Sen. Elizabeth Dole, R-N.C.

Many lawmakers voiced disdain for the extra tax breaks the Senate added to the financial-rescue package. They ranged from a one-year fix to prevent the alternative-minimum tax from hitting more taxpayers to extending the research credit for business to allowing rural utilities to issue tax-exempt bonds for use of renewable energy.

The federal government’s multi-billion-dollar bailout of bad mortgage debt could be a game-changer for home buyers, sellers and real estate professionals.

But how much may not be clear for months, maybe even a year.

In the short term, according to Jay Brinkmann, chief economist for the Mortgage Bankers Association, the government’s plan to greatly expand purchases of mortgage backed securities by the Treasury, Fannie Mae and Freddie Mac, should “provide a signal to the market that there’s going to be an underlying floor on (interest) rates.”

That’s because when the Treasury buys mortgage securities — and it’s pledging $10 billion for this month alone, plus lots more to come – it has the effect of pumping fresh capital into the mortgage market, allowing more home loans to be made at more favorable rates.

Now, although rates should remain low, currently they’re close to 6 percent for 30-year fixed rate loans on average — that doesn’t mean it’ll be easier to qualify for a home purchase if you’ve got damaged credit or an income too low to pay for what you want to buy.

Those days are over for years to come.

What about the larger economic impacts of the bailout plan? Again, we’re at the earliest stages of this whole process, but if the plan brings a sense of stability to the financial markets, then, absolutely, the net effect should be to restore confidence.

And consumer confidence is an essential ingredient for a home buying recovery. People who are worried about the safety of their money market investments and bank deposits aren’t good candidates for purchasing houses — even at rock bottom prices.

But the reverse is true as well: Greater consumer confidence in the financial marketplace — along with modest interest rates and attractive prices — could kick the whole cycle into gear and get housing moving again.

There’s another factor here too: Without the big bailout plan, hundreds of thousands of financially distressed homeowners were on a non-stop conveyor belt to foreclosure. But when the government takes over mortgage portfolios, it’s likely there’ll be at least temporary halts to foreclosures and massive efforts to “work out” the terms of delinquent loans to enable owners to make payments at levels they can afford.

For neighborhoods hard hit by foreclosures — and the distressed owners themselves — that will definitely be a game changer.