I got this email this morning. It kind of caught me off guard. "I hate many spam messages as well, but I really think that you guys should read this, as you might have to change some of your plans if you are seniors. This is huge, but please take the time to read it. Let me explain a little bit about what the bailout plan means. It seems that the public is against it. ItÃ¢â¬â¢s hard for me to come to realization that the public can be so ignorant. The bailout plan failed today. First, let me tell you why we got here. The reason why are economic system is failing is because people walked away from their homes. They bought a house for 500k paid just 50k down, paid 20kÃ¢â¬Â¦ and when the home was worth 300k in the market, instead of paying 430k left, they decided to walk away. The 130k that were not paid, was essentially stolen. This IS the problem. People stole from the banks, not because they couldnÃ¢â¬â¢t pay (albeit there were some cases), but mostly because they thought it was ok to be greedy and steal. The problem started in main street, people stole, and THEY are not held responsible. We have 5 million foreclosures, 60% on California and Florida. People walking away from their homes IS what is hurting the economy. Second, let me be clear what the bailout plan means. It means the government will buy 700 bln. Dollars of mostly securitized mortgages owned by various financial institutions. This means many things. It means that banks will be able to lend to other banks, that banks that will be able to give students their student loans. It means that you are going to be able to get a loan to buy a car, or to get a mortgage. Without this the velocity in which money exchanges hands will lower dramatically. Without credit and loans, businesses will not be able to start, house owners will not be able sell their houses, and more foreclosures will occur, as these foreclosures happen, your house will depreciate more, which means that house value will go down, which means that more people will walk away and they will steal MORE money. Money can not just vanished, if you owe 100k and you don't pay, someone losses money. The bailout puts a floor, buys these mortgages, and makes it able for business to move. Once the bailout plan goes into effect, house prices depreciation will stop, which means that people will actually pay their mortgages, once they see that their houses are not losing value, and the government (meaning tax payers) might actually make money from this plan once these mortgages start appreciating. Hank Paulson, was the CEO of Goldman Sachs, and worked there from 1972-2006. If there is something he knows how to do is make money. Why am I telling you this? Because YOU will be the one who will be mostly affected. If the bailout plan doesnÃ¢â¬â¢t occur I can tell you that unemployment will go to at least 20% (remember that I predicted merril, aig, Wachovia, lehman, fannie and Freddie, and WaMu to go away at the beginning of the semester). Not only that, for those who will be able to get jobs, you will suffer at least a 25% pay cut (at least). I am telling you, you have about 100k at stake for the next 5 years right now. Political year is among us, and EVERYBODY blames Wall Street, oh how evil they are,Ã¢â¬Â¦ why donÃ¢â¬â¢t they blame congress with their first time home-owner program and pushing banks to loosen the requirement to get a loan. There is a lesson to be learned, one, people (the masses) are mostly ignorant, and two, (the masses) are never hold responsible, because they have the voting power, three, people are greedy, and at some point most people will steal. This is crap for us people, you might not know it yet, but not only has American masses stolen from many of our bedrock financial institutions, but now, they have totally screwed us by stealing 100k of our salary for the next 5 years and probably about a 40% unemployment among recent grads (for the qualified jobs), specially in the financial industry. Getting a masters sounds interesting. Be prepared. The economy will eventually recover no matter what happens, and opportunities will occur. The bailout plan will be voted again, and I think that the plan will ultimately pass. That's why the dow jones is only down 700 points and not 2000. 75% chance it passes. It needs only 10 votes, and it was actually the Republicans who opposed to it 2-1. Everybody in the finance business that I know are livid. Things can get really bad my friends. REALLY FREAKIN' BAD. Depression like 1930's bad. sorry to bring the bad news, I just want everybody to be prepared for how ugly it might get, and think about the future, whether it is by getting a masters or CPA, CFA... etc... yours truly, Angelo Martorell" Awful grammar aside, what do guys think?