Bail out al home owners, problem solved?

Discussion in 'Economy' started by Care4all, Sep 18, 2008.

  1. Care4all
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    Care4all Warrior Princess Supporting Member

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    Why wouldn't bailing out all of the homewoners that were mislead in to their shotty mortgages save the whole economy...

    Lou Dobbs was saying that this year alone the feds have used or will use $800BILLION dollars to bail out these big gun financial institution and they are not done yet....

    Why wouldn't helping all of these home owners in default, to keep their homes, not be the answer that helps this economy instead of bailing out the corporations that own these loans?

    If these homewoners were bailed out, they keep their homes, the financial institutions get their money on these loans, and all is well for all of them?

    Why are the homeowners being left out of the fix? Why just hand money to the banks and financial institutions and insurance companies to save them from all of the defaults and not secure the homes for the people?

    if the people were part of this equation as the institutions are, then they would be more sound financially and they would have security and they would eventually be spending more and more in the economy to keep it going?

    i realize this is simple thinking and it is much more complicated than meets the eye....but i still don't "get" using our tax dollars to only help the assholes that caused this greed infested mess....?
     
  2. Ravi
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    Ravi Diamond Member

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    Probably because individually homeowners don't have a big effect on the economy while individually big corporations do have a big effect.
     
  3. Care4all
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    Care4all Warrior Princess Supporting Member

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    but the big corps would ALL still get their money? Only in the form of people paying their mortgages instead of defaulting on them?
     
  4. glockmail
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    glockmail BANNED

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    This whole thing started when Fannie Mae and Freddie Mac were born. Then the Democrats got the bright idea that everyone, including those who can't afford one, and those with bad credit, should get one as well. Fannie and Freddie created all types of new loan "products" such as teaser rates, no equity, ARMS, and negative equity to allow the deadbeats to qualify. Now that the notes are due Fannie and Freddie want us to pay the bill.

    I call bullshit on this. Fannie and Freddie should have been aborted.
     
  5. Ravi
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    Ravi Diamond Member

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    How would you do it, though? If we, the people, bail out people that made bad decisions, then am I not entitled to default on my mortgage and get bailed out? Where does it end?

    Bailing out the companies isn't the answer either, because it just encourages other companies to engage in risky behavior.

    I can see the fed stepping in to stabilize the economy, but they need to fire all these knuckleheads that contributed to the entire mess. And there are thousands of them throughout the entire mortgage industry and on wall street.
     
  6. Care4all
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    Care4all Warrior Princess Supporting Member

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    i call bullshit.

    it wasn't so that everyone could own a home, but so that MORE people could own a home and it was Phil Graham's legislation that deregulated that allowed the big financial institutions in to GREED.....

    And what about Bear Sterns, and Morgan stanley and Lehman and washington mutual and AIG?

    Who had the "relationship" with these corps?

    hogwash....

    the BANKS and Financial Institutions took advantage of the deregulation and made UNSOUND FINANCIAL MOVES for pure GREED....they f-d us....they couldn't give 2 poops about people owning homes....they only cared about themselves and the immediate money they could make off of the poor new homeowners....
     
    Last edited: Sep 18, 2008
  7. Care4all
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    Care4all Warrior Princess Supporting Member

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    they are private corporations ravi, the government can't fire them, the government can't take their millions that they made off of their abuse, the government can't stop them from getting their golden parachutes if let go....

    these are private institutions.

    My point is, that if the homehowners were helped in to FIXED mortgages of 6%-7% then the PROBLEM would be solved for the most part....

    it is the adjustable morgages skyrocketing and the inability to get a fixed mortgage that is causing the defaults for the most part....

    help them get in to secure conventional mortgages would keep them in their homes, for the most part...

    And the financial institutions are the ones that SCREWED these people to the wall.....with unsaid or said promises...like, when the baloon hits or the adjustable rate becomes adjustable, you can refinance your homes in to a conventional mortgage...these people believed such, but now the conventional mortgages ARE NOT AVAIL to them....they set them up for failure and homeowners have always thought the financial institutions would not loan you money if they didn't think you could afford it....the homeowners were used and abused by these institutions, and all out of the GREED of the corporation....imo.
     
  8. sealybobo
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    sealybobo Diamond Member

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    Lock them all into the rates they were paying before the subprime rates kicked in. If you were paying 7% and all of the sudden it went to 15%, roll it back to 7%. The end.

    If they didn't put anything down and don't deserve to be at 7%, consider the fact that the $200k house they bought is now only worth $170K.

    And it's better than the Government having to purchase Freddy, Fanny & AIG and every other financial institution that is next to collapse.
     
  9. Care4all
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    Care4all Warrior Princess Supporting Member

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    yes, and this would reduce the banks and other institutions liability and make them more financially sound while keeping people in their homes? helping BOTH sides of this crisis INSTEAD of ONLY helping the corporations who MADE the decisions to do business that was not financially sound for the sake of greed?
     
  10. editec
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    editec Mr. Forgot-it-All

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    Not to worry.

    Nobody is going to bail out the homeowners.

    They will continue to lose their homes at record rates.

    There now, feel better?
     

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