Bail out al home owners, problem solved?

[Care4all]

Oh hell! All real estate is still down to rock bottom prices ..... houses, apartment buildings, condo's, commercial builiding's - all of them that are currently now in foreclosure. So let's devise a new plan? Let's all run out and buy about 10 houses each, then when the "bailout" comes we all get a whole new lease on life, and rent these puppies out to low income families!

Is this the way it is going to work?

no such luck....but with the continual fall on prices, it would be a good purchase if you could buy when it hits bottom imo....but who knows when that will be....

 

[gonegolfin]

why?

i just don't get it?

Read the book I suggested. You will begin to understand a lot more.

Brian

 

[editec]

no such luck....but with the continual fall on prices, it would be a good purchase if you could buy when it hits bottom imo....but who knows when that will be....

Yup.

It is the vicious cycle of deflation

People in a position to buy want to hit it at the bottom of the market.

Until people start buying there is no bottom.

Eventually someone will blink and start buying IF they can get mortgages, of course.

And until we resolve the valuation of the real estate mortgages in trouble, the banks are even reluctant to lend to EACH OTHER.

Did I mention it's a very vicious cycle of deflation?

 

[jeet]

I Personally believe instead of giving these financial companies tax payers money, they should give each household a fresh start. If you are a US Citizen, Green Card Holder the government should give each household a Million Dollars taxable of course and state that you have to pay your debts off from your home to credit cards. An average American debt including house is close to $450,000 with the housing slump. when that's paid off and whatever your left with eventually will go in the banks and back in the economy. Within 6 to 8 months your economy will flow again at its normal pace.

 

[glockmail]

I Personally believe instead of giving these financial companies tax payers money, they should give each household a fresh start. If you are a US Citizen, Green Card Holder the government should give each household a Million Dollars taxable of course and state that you have to pay your debts off from your home to credit cards. An average American debt including house is close to $450,000 with the housing slump. when that's paid off and whatever your left with eventually will go in the banks and back in the economy. Within 6 to 8 months your economy will flow again at its normal pace.

Wow all time most stupid postition, and in your #2 post! You must be a Democrat.

 

[jeet]

I'm actually a republican and a successful one, But I do believe in That we need change.

 

[editec]

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....?

Exactly how we dealt with this problem the last time capitalism shit the bed during the GREAT DEPRESSION.

The USA actually made money on the deal, too.

 

[glockmail]

I'm actually a republican and a successful one, But I do believe in That we need change.

No you're an Obamabot spouting a typical comeback line, right out of the playbook.

 

[editec]

This is what bothers me about the people on the news telling us that prices were too high for homes compared to the normal trend of rises in home prices...and on that, I agree....HOWEVER where does supply and demand come in to the picture?

Demand was UP because people wholly unqualified to buy had NINA loans to buy houses with.

There WERE more people buying homes, (demand was up) so the prices of homes SHOULD have risen at a faster pace than the norm.

Yes, that is how the market works. Sadly the market's normal checks and balances were distorted by the policy that made it possible for lying bankers and offload their bad debts on trusting BOND BUYERS.

Even when this whole mess is said and done with foreclosures, I would bet that more people bought homes during this period and STILL own them than during previous periods of new homeownership, thus the home prices should have ticked up at a faster pace than the normal pace....?

Yes, that might be one good outcome, I agree. Of course ALL of us will be augmenting payments for those houses for a great long time.

Yet i still hear analysts saying that prices of homes have another 10% drop from their already dropped prices just to get to that "normal" pace in price hikes.....? Why do they have to drop another 10%?

Because the VARS that people signed make it impossible for millions of them to stay in those homes, and because the bail out package doesn't help them one bit, that's why.

Every time these prices fall, it makes more and more people susceptible to foreclosure due to putting them in an UPSIDE DOWN mortgage, making it impossible for even good standing home owners with Adjustable rate mortgages.... NOT being able to refinance their homes in to a conventional mortgage which they were TOLD by the lender, that they would be able to do when their adjustable rate mortgage begins its adjustable stage.

Yes. And as the economy falters, even people who are not in crappy mortgages are going to have to sell their homes (at a loss) too.

We might be in for a very vicious cycle when it comes to to the market value of real estate.

which means that this fiasco will even get worse...

I think you are right.

And it has hurt people like Matt and me, who bought their home cash in late 2006...our home has lost about 30% of it's value since we bought it...which sucks, big time! And we bargained the house down $46k from it's listing price when we bought it...the spiral in value down continues.

It hurt EVERYONE who is a real homeowner, that's for damned sure.

And this is the case with pretty much anyone that bought a house in 2005, 2006, 2007, and 2008.....

Or anyone who owns a home PERIOD.

And anyone that bought a home long previous to this, that refinanced or took equity out of their home to invest in other things, is getting hurt and strapped also, to the home they are in, because they too might be upside down in their mortgages.

Even if they did NOT, they have lost net worth, haven't they?

This bail out should have occured from the bottom up, if it was to occur at all....it would have put all of America in a better position and still SAVED the financial institutions.

Yes, that is correct.

Now ask yourself why they did not do that?

Could it be to keep the middle class poor and desperate, maybe?

Just klike FREE TRADE IS DOING?

Just like allowing millions of illegal immigrants is doing?

Just like unfair TAXATION is doing?

We are in a CLASS WAR, Secrets, make no mistake about that.

And the Masters will win this war because they can systematically parce out enough people, reward just enough people, to keep the system going, as it systematically grind the rest of us into dust.

We are becoming a feudal society, one run now, not by an oppressive Church, but instead by an oppressive chuch which worships at the alter of MAMMON.

And the best part of this system is we can continue to pretend that our respresenational form of government is in charge, when it is in fact, merely the executive arm (the enforcement arm) of the corrupted system which pretends to be a representational government.

Basically we are like slaves who get to choose which other slave wields the whip on behalf of the MASTER.