What Does the Bailout Mean for You?
July 1, 2015 | Peter J. LaBella, CFP®
As Published by ABC 27 News
When (or if) a bailout passes, how will it affect you? Will it mean better loans, and what about credit or mortgages?
Some of us might be thinking this is just a problem for big financiers and high money people, but experts say that’s wrong. What happens on Wall Street and in Washington will absolutely be felt here in the midstate.
The talk shows are buzzing, the headlines are screaming, and midstaters are talking about the proposed taxpayer bailout of Wall Street.
“I’m very troubled how we got here, about not watching the chicken coop,” said Char Magaro of Harrisburg. “The amount of greed and lack of regulation is very scary.”
“The poor can’t pay. The rich won’t pay,” said A.J. Briley of Harrisburg. “So who does that leave? The middle class.”
Peter LaBella’s been a financial adviser for 35 years. He says this doesn’t just affect fat cats on Wall Street, but nearly all of us.
If you have a 401(k) or retirement plan, if you want a mortgage or a car loan, if you like paychecks – you should care.
“If you want your job, and want your company you’re working for here locally in small town America to keep getting its financing to make payroll,” then the bailout affects you personally, said LaBella.
He says people should be angry at mismanagement and wrong doing. Changes should be made to the system, but the government must step in and help.
“People are panicking, you don’t want that,” said LaBella. “You want to stop panic. That is the role of government, to protect us and to stop panic.”
LaBella says most retirement and 401(k) plans are down 20 to 30 percent for the year.
“I’ve never seen anything like this, and I hope to goodness I never see anything like it again,” said LaBella. “I hope to get through this without having a heart attack.”
While many financial types insist the government must bail out Wall Street, a new SurveyUSA poll shows that more than half of Americans have “no faith” in the government’s ability to fix the economy.