Bail out al home owners, problem solved?

[Care4all]

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....?

 

[Ravi]

Probably because individually homeowners don't have a big effect on the economy while individually big corporations do have a big effect.

 

[Care4all]

Probably because individually homeowners don't have a big effect on the economy while individually big corporations do have a big effect.

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

 

[glockmail]

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.

 

[Ravi]

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

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.

 

[Care4all]

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.

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....

 

[Care4all]

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.

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.

 

[sealybobo]

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....?

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.

 

[Care4all]

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.

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?

 

[editec]

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?

 

[Care4all]

i don't understand why the government is not willing to kill two birds with ONE STONE?

 

[glockmail]

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....

They knew they could sell their crap mortgages to Fannie and Freddie.

 

[Care4all]

They knew they could sell their crap mortgages to Fannie and Freddie.

so they dicked fannie and freddie, along with the homeowners, while they made out like a bandit on their immediate returns??

just proves that GREED rules when deregulated... ideally the less regulation the better, ON PAPER, but in reality it has been proven that the LOVE of money among these corporate heads, lead us to these unsound business decisions, and was the root of this evil....yet we reward them for their own lack of responsibility to their shareholders?

what a messed up world!

 

[Anguille]

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....?

I agree that more help should go to homeowners but certainly none to those who were buying homes as investments to flip. Also, I have little sympathy for people who bought McMansions and financed that market which contributes to urban sprawl.

 

[glockmail]

so they dicked fannie and freddie, along with the homeowners, while they made out like a bandit on their immediate returns??

just proves that GREED rules when deregulated... ideally the less regulation the better, ON PAPER, but in reality it has been proven that the LOVE of money among these corporate heads, lead us to these unsound business decisions, and was the root of this evil....yet we reward them for their own lack of responsibility to their shareholders?

what a messed up world!

No what it proves is that government will screw something up when it gets involved in something that should be a capitalist venture, since it has no understanding of financial greed and how to use it effectively.

 

[CA95380]

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

You can not possibly be serious about this, right? I even looked to see if you had listed it in the humor section, and you didn't.

You honestly think all of those people with a 6 bedroom , 5 bathroom house, a swimming pool, spa, that they paid over $750,000.00 (typicial in California - and it's probably worth less than 200k), a large motorhome, a boat, along with 2 new SUV's sitting in the driveway should be bailed out by the government? What next? The government should pay for their 2 spoiled brats (cell phones in hand) to attend private grade school, and Mom draw unemployment because she has decided "Why work? I am going to live off of the state for awhile - let's go on vacation!!!!!"

And not to mention the "flippers" how about them? Bail them out too? They made a killing - while the gettin was good!

These people overextended their paychecks - plain and simple! ... because they were allowed to do so by a government (aka Bush and his team of Usual Suspects) .... that lead them down the yellow brick road to disaster.

No thanks! Instead of bailing "them out" .... send me on vacation and pay for it because I have paid my bills ontime, and have already paid off my mortgage! Because I plan to live in this house til I die - plus it has stood up to several minor earthquakes, here in Central California - not like those 500k crackerboxes that were built in the "recent real estate boom days" that already have cracks in the walls and faulty foundations.

You are just plain NUTZ!!!!

 

[Care4all]

I agree that more help should go to homeowners but certainly none to those who were buying homes as investments to flip. Also, I have little sympathy for people who bought McMansions and financed that market which contributes to urban sprawl.

I agree the flippers should be punished...but if this is the case, why punish them and not the financial institutions that ALSO made and started these unsound business moves?

 

[dilloduck]

I agree the flippers should be punished...but if this is the case, why punish them and not the financial institutions that ALSO made and started these unsound business moves?

kill em all and start over

 

[Care4all]

kill em all and start over

if only that were an option...... j/k

 

[dilloduck]

if only that were an option...... j/k

how's punishing anyone gonna help?