Even more housing bailout talk…

[hipmatt]

Politicians hear ‘one heartbreaking story after another’..absolutely pathetic, what a shame, I am afraid that there will be a bailout.. what a pathetic country.
http://www.pe.com/business/local/stories/PE_Biz_D_housing12.3c07777.html

[gold_dredger_phd]

This just makes me sick. All these people act like infants and demand that “Mommy fix their Boo-boo!”

The moral of the story is, “Buy stuff you can’t afford and then whine to the government when the real owners try to take it back.”

They should lose their homes. But, I guess the bond holders will lose their money instead. Maybe that loss will force at least some people in the market to act like adults.

Maybe owning a house can become an economic right? Just like in the Soviet Union when everyone was given an apartment and a job for life. We’ll have socialized medicine in this country before long and probably socialized housing.

Force people to pay cash for their houses and housing would not be overpriced. Get rid of the mortgage deduction.

[Bugs]

Eliminating the mortgage business is never going to happen. As long as there’s a buck to be made putting deposit and investment income to work there will be lenders to broker that capital out.

Getting rid of the mortgage (interest) reduction is a different story. That possibly could happen. If it did things would definitely change.

[SD Realtor]

The ramifications of this are horrific. This is a directive that our government condones and will take fiscal responsibility for consumers who cannot do it themselves. I cannot understate how reckless this is. It doesn’t matter if they bailout .1% or 100% of the foreclosures. A policy like this will ruin the efficiency of the market, and throw a total wrench in the mechanics of what should happen.

and we all get to finance this bailout.

SD Realtor

[sdrealtor]

Isnt this what our government always does? How many billions do we spend in Iraq every day?

[SD Realtor]

Yes it is what our govt does. Usually, like the case you pointed out, our govt gets us into a mess, then makes us pay to get us out of the mess.

In this case, I am especially pissed because IMO the govt didn’t get us into this mess. Yes there are policies that may have been enabling mechanisms, however unlike IRAQ each person that is now facing foreclosure is in that situation because they ultimately signed the loan docs. Bush didnt make them do it, nor did Rumsfeld, or any of the democrats or other republicans.

So this is one of the few messes our govt is not actually 100% responsible for. Yet here comes our govt to mop it up.

Now I know alot of people will whine and blame bush or greenspan or whoever for generating and enabling mechanism. However in my mind this is just people saying the govt is responsible for making everyone in society wear a helmet because we all ultimately ride on the short bus.

SD Realtor

[Artifact]

I rarely feel compelled to write my senators or congressmen but the whole housing bailout notion just bothers me so much that I have written both Boxer and Feinstein twice now saying what a bad idea I think it is; the main point being that I feel it is a complete slap in the face to anyone who has been responsible to use their tax dollars to bailout the few true sob stories and the multitude of frauds and speculators. In the end, they could end up spending my money to help keep home prices higher than I can afford, despite having a decent paying job.

For what it is worth, I also pointed out to both of them that I almost always vote for the democrat candidates, which could change with enough things like this despite my dislike of the republicans on other issues.

[gold_dredger_phd]

This is the Fed’s mess. If “Bubbles” Greenspan and the Fed did not panic after the stock market bubble collapsed and 9/11 happened, this never would have gotten as bad as it did.

The lowest interest rates in 45 years! The economy in 2003 was nothing like the economy 45 years earlier. Don’t these idiots know the difference?

This is what happens when you let the government control the money. If we did not have legal tender laws in the country, people could use what currency they wanted or have a gold standard.

[SD Realtor]

Yeah I guess your right. Forget about personal responsibility. It is not like these same people don’t go out and run up credit card debt or buy cars they can’t afford either.

I guess it is the responsibility of the Fed to make sure that idiots don’t buy things they cannot afford. Let’s tell the Fed to also tell China and other southeast asian countries to stop funding our debt and driving the bond market which is in reality what long term mortgages are driven by. Let’s blame everyone but the person who took out the loan. Obviously someone put a gun to his head.

Or maybe we should be novel and let the person who took out the loan loose his home, and let the lender who originated the loan get stuck with the house.

SD Realtor

[limo_888]

If you are sick of it all. Here is a chance for you to do something about it.

Write your own Representative and Senators!

Find Your Representative
http://www.house.gov/writerep/
Find Your Senators
http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state&Sort=ASC

SAMPLE LETTER – If you are at a loss for words, copy the following letter into the email you send to your Representative, and be sure to include your rep’s name and your name and location before sending 🙂

Dear X Representative,

Please do not support the efforts to bail out subprime
borrowers with my tax dollars. As a responsible citizen, I
do not feel it is right for you to ask me to pay for other
peoples’ financial mistakes, especially since a bailout
encourages sleazy lenders to keep on making predatory loans,
with the assumption that taxpayers are on the hook.

I appreciate the goal of helping people to have access to
housing, but the proposed subprime bailout will only reward
people who acted irresponsibly, and it will punish people
who work hard and diligently manage their finances by not
buying houses which they cannot afford.

The housing market has begun a process of correction. This
is necessary in order to keep housing affordable in the
long-term. Let the market correct so we can achieve
stability again, and people are able to save and afford the
house of their dreams over time. That really is the true
American Dream.

Sincerely,

Your Name
City, State

[equalizer]

SD Realtor vs Goldman Sachs

In a thrilling zero-round KO, GS is declared the winner.
Who has bought up credit swaps, subdentured debt from sub-prime guys recently?
Take a guess, its the guys on this list! What happended to personal responibility? That campaign rhetoric to get ignorant people to vote for you. You’ve got libs who don’t want to see people lose “rented” homes, cons who don’t want economy to tank for 08 and GS, et. al who are the clean up hitters looking for the homerun in profits. Bailout in a sense has already started. Lenders are already offering to delay resets for 1-2 years for those ARMs or are capping at 2% increase for first reset instead of 5% increase. The losers: Any moron that took out fixed!!

So who are the pawns in this game? No, not the FBs, that would be …

me and SD Realtor.

CHARLES E. SCHUMER (D-NY)
Top Contributors
1 Goldman Sachs $270,090
2 Citigroup Inc $241,100
3 Morgan Stanley $194,000
4 Credit Suisse First Boston $154,794
5 Merrill Lynch $147,000
6 Bear Stearns $140,900
7 UBS Americas $139,750
8 JP Morgan Chase & Co $139,550

http://www.opensecrets.org/politicians/contrib.asp?cycle=2004&CID=N00001093

[JJsqueeze]

This bailout talk is plain disgusting. I encourage all of you to contact your representatives to make the other side of the story heard. Those of us who have been responsible should not be penalized for others’ mistakes. I have already written twice and I intend to drop a few more notes to them if this thing gathers steam. I am all for some sort of congressional action regarding the root cause of the bubble, but to bailout homeowners and/or lenders is ridiculous. So friggin what if they lose their hoimes. They can’t rent like me? I voluntarily lost my home last year as a result of time consuming analysis of the facts and a very difficult decision to put the energy into moving my family becuase I saw an opportunity coming that I think worked better for us. We are sacrificing right now, as are many of us on this site. Do not let these media pandering parasites let this happen. WRITE.

[barnaby33]

Speaking of bailout talk. I was driving home at about 4:45 on thursday when a talk of a private bailout via Bank of America and Citigroup was reported in the news. I believe the number quoted was 1 billion dollars to finannce 7000 FB’s out of their toxic loans. Man thats going to hurt their profitability. I wonder which 7000 well deserving FB’s will get that refinancing?

Josh

[sdrealtor]

The big banks are already setting up massive workout teams with hundreds of workers to help distressed borrowers. Of course this only delays the eventual but the longer this goes on the more chance for something to happen to cushion the blow and the more time to inflate our way out of this.

My advice, if you cant stomach buying with downside risk find yourself a really nice rental that you can stay in for a long long time because this is going to go on for many years.

[scotia10]

Limo

Great letter(Senators/Rep) and thanks for the links…makes it easy folks! Anyone who enjoys this forum has a duty!

[Author]

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