Bailouts: What Will They Do For You?

Fannie Mae, Freddie Mac, AIG, Bear Stearns, Lehman Brothers - it’s all adding up to become one of the most historical financial times America has ever witnessed.

The Bush Administration has proposed a whopper of a plan – a nearly $700 billion injection of cash straight to the source of pain – the banking industry. The bulk of the money is earmarked to buy the debts of battered banks.

So what do these bailouts do for you and me? The overall hope is that this bailout/bandage for the financial industry will begin to put the housing industry back on the right track. Not doing anything could make things worse.

If the government chose not to step in, things could get even worse. Right to where it will start to hurt taxpayers individually, instead of big insurance companies. It could begin to affect retirement funds (your 401K), more banks could fail, along with the loss of many American jobs.

We'd love to hear your opinion on all these bailouts. Do you think "Big Brother" was right to step in, or will it hurt us all in the long run? Sound off by clicking the comment link below and telling us what you think.

Insurance Premiums: Are We In For Hikes?

With the recent (effective) takeover of AIG by the government, and billions of dollars in damage caused by recent hurricanes, there's reason to be concerned about the health of the insurance industry.

Experts are quick to point out that the financial woes facing AIG shouldn't have any impact on the company's policyholders. In addition, while the recent hurricanes may lead some insurers to raise their premiums, or the fee you pay for insurance coverage, most industry watchers think the increases will be modest.

 
While it's still too early to estimate the total amount of damage caused by this year's hurricane season (which isn't over yet!), it's unlikely that it will be enough to cause a dramatic rise in insurance premiums across the board, but don't be surprised if your premiums go up at renewal time.

Even though experts agree that the industry's woes are unlikely to affect the average consumer, those that do discover a rate increase in their next renewal notice should take that as an opportunity to shop around for a new insurer.

What do you think? Will the hurricanes and the AIG takeover affect all of us? We'd love to hear your opinion. Just click the comment link below and tell us what you think.

New Home Builds at a 17-Year Low

Construction of new homes and apartments fell to its lowest level in 17 years in August, showing the country is still gripped by a severe housing downturn that has triggered billions of dollars of losses and is reshaping the structure of U.S. finance.

Housing construction dropped a surprising 6.2% last month to a seasonally adjusted annual rate of 895,000 units. That's the slowest building pace since January 1991, another period when housing was going through a painful correction. The August drop reflected a 1.9% decline in single-family construction, which fell to an annual rate of 630,000 units. Construction of multifamily units fell by 15.1% to an annual rate of 265,000 units.

The housing downturn has depressed overall economic activity and pushed the country close to a recession. Thousands of construction jobs have been lost, contributing to an economic slowdown that has pushed the overall unemployment rate to a five-year high.

Those who can qualify for a mortgage (or have the cash to buy without a mortgage) are sitting pretty right now with the huge inventory of homes on the market just about everywhere. Mortgage rates continue to slide in light of the government's huge bailout plan, and as a result, the combination of low rates and high inventory make now a cherry picker's dream time for housing.

Talk to us if you're considering a home. There may never be this great of a combined opportunity again.

Retirement in Your 20's

Investing in your 20's isn't child's play. But it's still one thing most 20-somethings don't think about at all. Can you find a way to stash away a measly $12.50 a week?  In our final of this 4-part series on retirement, Money Editor Stacy Johnson, takes a look at "Retirement in Your 20's." (Video runs 1:33)…

If you have a comment or question, please click the comment link below and let us hear from you.

Credit Cards: Smart Uses For Them

There are many times when a credit card can get you into serious trouble, but there are a few situations when a credit card can be your best friend. Money Editor Stacy Johnson explains…(video runs 1:20)

Have a question or comment about this video? Share your thoughts or comments by clicking on the comment link below. Your email (although needed to post) will never be published on our site, so don't worry about privacy… we protect you there.. so go ahead… tell us what's on your mind.