Government Bailout Minneapolis Real Estate

So the government just bailed out Fannie Mae and Freddie Mac. Interesting, how will this affect you as a American and how will in affect you as a home buyer? The answer is twofold. First, this move will probably lower interest rates and add more confidence through the market in the short-term. It will help liquidate the market and more people will be able to borrow money and buy houses. So in Minneapolis you will probably see sales increase. Good for them. But long term I really not like it because it affect most Americans in a bad way. The government is literally bailing out the richest people in the word. The hedge funds and investors who bought these mortgages are getting bailed out by the government. The government is saying, “you made a mistake, don’t worry, the taxpayers will pay for it.” That means your taxes are going to increase. Also, the federal debt will increase due to this move because the government is essentially paying to capitalize the mortgage giants. How will it pay for it? They will print money and the value of the dollar will continue to decrease as the number of dollars on the market increases. This means inflation. So you are going to get taxed more and everything is going to cost more. How did we get into this mess? I believe it was a mismanagement of the money supply. Too much easy money for too long, led to too many bad borrowers and borrowees playing the game. But for now it should be easier to get a new house in Minneapolis.