Should the U.S. government step in and back up troubled mortgage loans?

Discussion in 'Economy' started by Gunny, Mar 30, 2008.

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Should the U.S. government step in and back up troubled mortgage loans?

  1. yes

    2 vote(s)
    13.3%
  2. no

    13 vote(s)
    86.7%
  1. Gunny
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    Gunny Gold Member

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    Saw this poll on CNN. Figured the responses could be interesting. Don't just vote ... explain why or why not.
     
  2. RetiredGySgt
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    RetiredGySgt Platinum Member

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    The housing bust is because of piss poor loans and speculation. Exactly what caused the collapse in 29. The Government needs to force the banks to be responsible.

    If you were STUPID enough to get a loan you can not afford to pay off, it is not the Government's job to buy your house for you. If the bank was dumb enough to make questionable loans, to damn bad, they can suck up the loss.
     
  3. jreeves
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    jreeves Senior Member

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    This is exactly the major problem wrong with the federal government. If someone makes a bad judgement either personally or with their business, don't worry just print more money to bail them out.
     
  4. Angel Heart
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    Angel Heart Conservative Hippie

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    No it's not the job of the government to bail out everyone for making bad choices.
     
  5. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    I voted yes, but my support would hinge on certain criteria. The main being evidence that such action would save the economy from recesson. The other being that if the government obught your mortgage, then the government owns your house and may sell it. I don't want it to be a welfare program where the government bails you out, but you get to keep all the shit you bought. This would have to be an investment by the government, not a bail out. If these criteria weren't met then would change my vote to no.
     
  6. jillian
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    jillian Princess Supporting Member

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    yeah, the government should only bail out corporations like Chrysler, American Airlines, etc., right?
     
  7. jreeves
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    jreeves Senior Member

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    The government should only provide help for corporations that would bring the entire economy down to it's knees.
     
  8. jeffex
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    jeffex Member

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    define bailout! a program to GIVE free money to homeowners to keep them in their homes? or a program to keep as many as posssible paying as much as possible towards their original debt. both programs reward for poor financial judgement or stupidity. Who's to blame? everyone from the broker and lender to the borrower to the lack of gov oversite. Who will pay for the bailout. The guy who maintained fiscal prudence will be penalized in this not rewarded. I would propose a one time mulligan where the FED lends money at 2% to the banks and they in turn create a one time mortgage of 4% with fundamantally sound lending criteria. Use the truth before the bad loan of the customer and require full disclosure. If they qualify then they get a one time mulligan. If you can't meet the new criteria at 4% then tough sh%$. Clean your act up . Last but not least I should be able to get this loan too as a reward for my financial prudence. It will force financial institutions to pay their part in this mess and live on 2% profits for a while as they clean up their act. In the end the average person refinances every 4-5 years any way and then they will be subject to the rates at hand. Many may be forced to change their habit of refying so often and learn to live in their means or risk loosing their gravy interest rate. Those who can afford it will ..those who can't well.... they can't .
    Time will heal this wound and people will be forced into making good financial decisions or loose the 4% rate
    USA LOAN MODIFICATION PROGRAM i'll take the job Mr. president
     
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  9. Angel Heart
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    Angel Heart Conservative Hippie

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    And where did I say that? No I think that government should let the pieces fall where they may even in those cases.
     
  10. hjmick
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    hjmick Gold Member

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    The federal government should not be bailing out anyone. Private business, cities, or people who were too foolish not to read the fine print. Simply put, it is not their job.
     

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