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Basically, people bought houses they couldn't afford thinking they'd either be able to refinance and have cheaper payments, or sell it in a few years at a higher price. When that didn't happen, they defaulted on their loans which caused two of the MAJOR credit bureaus to go belly up.
It's effecting all of us because it's causing the entire economy to flounder.
Bush wants to give wallstreet 700 billion of our tax dollars to bail them out.. hoping that someday we'll get the money back. it happened during the great depression, but there is no guarantee. A lot of congress is against it, but they all know we have to step in SOMEHOW or it will negatively effect everyone.
Being a SAHM may not be a bad decision. Wallstreet isn't going to cause gas prices to go up (other things will cause that of course), your money is safe in the bank.
If you're looking to refinance though, I wouldn't necessarily count on it.. and depending on the market for selling where you are that may or may not be a viable option.
I think we'll all be okay, the economy has been floundering for a LONG time.. so if you hadn't noticed it before, chances are you won't now.
It is something to worry about, but there's nothing we can do- it's up to congress now. I don't think it's anything to absolutely freak out and lose sleep over. Not yet anyways.
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