San Diego Housing Bubble News and Analysis

Alright, I'm about to go into "full bitch mode". This is exactly what I need to hear this morning. NOT!

JWM in SD

Yawn....wake me up when they actually know how administer something like this properly. Until then, it is bullshit.

OMG the financially responsible citizen gets passed around like a stripper at the Bada Bing while the junkies and their pushers sneak out the back door.

1M mortgages at 15B
15B/1M = 15k

=> the mortgages are for $15k?

Maybe it's an implied message to home owners that their homes are not worth what they think they are.

JWM in SD

No, too nuanced for J6Pck. More like a message to the banks and WS that they might have to write down the loan values and take some of the crap back onto their Balance Sheets.

Even more likey Gov ineptitude. Ok lots of people are scared, so choose a big number, 1 million. Perfect. Now choose an even bigger number that will make people think we are really serious about this without going overboard and being irresponisible, 15 BILLION. YES! we will bail out 1 million people using 15 billion, that sounds big, but not too big.
Clinton did this not too long ago, proposing a 1 billion dollar fund for this kinda stuff. Too bad that doesnt even take care of Greater Detroit's problems 3 months ago, let alone the country. BUT it sounds big......

The government is primarily composed of short sighted FOOLS who are so incompetent that they couldn't hit themselves in the ass with both hands. Every time I hear about some new, proposed bailout program, I grab my wallet with one hand and cover my butt with the other. If they continue to advance this idiotic program, Washington is going to be flooded with phone calls, letters and emails from angry homeowners who did NOT act irresponsibly with their credit and responsible renters who chose not to gamble with their life savings and other people's money. If the politicians have any sense, they'll let this one die because it may get their sorry butts in serious trouble with their constituents.

This is more "beating the bushes" talk. Millions of taxpayers would revolt if this is proposed as an option. As previously noted, it would take 150 billion to make a dent - one more thing our government can't pay the interest on. Now if they want to co-sign these loans out of every politician's and supporting staff's pension or retirement plan I'm more than willing to listen.

DFTH, that's funny... The pensions funds of politicians should buy those mortgages. ;)

This quote is so rich! "The plan comes as the banking industry has advanced several proposals on Capitol Hill that would allow the government to take on the risk of some bad loans, potentially limiting the scope of losses for Wall Street" So nice of the financials to "allow" the government to take on the risk and pass it on to rational people everywhere!

I am convinced that big business will end free market capitalism altogether if they find the opening to do so. Who really needs to be competitive in the marketplace when you have Uncle Sam on your side! When small business fails, it fails. When big business fails... well then they ALLOW the governement (i.e. the taxpayer) to assume their liabilities!

What a load of crap.

Could a lawsuit be filed to prevent this bailout from happening? If the govt does something as stupid activity as this, how should the prudent people in this country react?

15... beelion... dollars...?!?

i dropped a nice email into the dnc mail box... i think it was a dnc originated plot. something about democrats are just as stupid and evil as republicans, just with different language.

be forwarned, you'll end up on the dnc mailing list if you write.

"Could a lawsuit be filed to prevent this bailout from happening? If the govt does something as stupid activity as this, how should the prudent people in this country react? "

It's up to our children to file.  You see, the money used by the government today will be paid back by the taxes our children and grandchildren and great grandchildren will pay.  Perhaps since they had no say in incurring this tax bill, they should file suit against the government for forcing them into indentured servitude.

At this point, the war about massive govt intervention is over, and they are just arguing over how to clean up the accounting. The war ended when the FHLB was given the green light in 2007 to pump in unlimited funds for Countrwide and other lenders still offering 90%+ loans on over-inflated homes. Over $500 billion was already pumped in during 2007, and it's still flowing freely. The main aqueduct is flowing, and now they are just fine-tuning by opening as many other spigots as they can think of.

Natural economic forces would take home prices in So Cal down by 50% in a few months, I would guess. After all, just think if you'd lend some homebuyer, with your own unborrowed cash savings, a non-recourse, no-prepayment penalty loan for 90% of today's still-inflated prices, for a return of just 2-4% annually above what you could get on a 10-year Treasury. That's what's happening in today's market, and obviously the only people doing it are banks and others who are getting explicit or implicit guarantees from you and me (the govt.).

So don't get upset about the future. It's already in the past!

Patient renter in OC

patientlywaiting,

That would be something eh? I'm with Ex-SD on this one. I'm tired of them trying to squeeze whatever they can out of us - it's time to turn the tables on these bastards. People need to press the pols at their campaign stops on how much they are going to give out of their pockets to help out "those poor unwitting fools who had no idea they were buying houses they had no business even thinking about buying". I'd like to see an Op-ed piece in a major newspaper proposing a politician and/or government employee-led bailout of the GF's....hah!