Even more housing bailout talk…

[blahblahblah]

The goal of this bailout isn’t to stabilize anything, it’s to transfer tax dollars to banks and hedge funds so that they’re not penalized for making and purchasing bad loans. See sdrealtor’s “golden rule”, above. And as far as having “enough money”, the US has an infinite amount of money — at least according to our Vice President. I’m sure many of our senators and representatives feel the same way…

As for what this portends for the housing market, I think you’re right, it will prolong the ridiculousness. We might even find ourselves in a similar situation to the Netherlands, where the housing bubble continues to grow with each additional government intervention and bailout. A lot of Japan’s financial troubles in the 90s were caused by government bailouts of banks that had made bad loans, if I remember correctly. Maybe something similar will happen here.

[SD Transplant]

Hmmmm,

It makes one wonder if indeed SOCIALISM was worse (I’ve spent 16 years growing up prior to the Berlin wall falling). I got to say, I could not wait to bail out of there. I guess the pressure was politically motivated. At least these people were HONEST ABOUT THEIR WAYS (I don’t agree with them, but you knew where they were coming)

Here I am, trying to understand this so called ELECTED CAPITALISM at work, and it points to socialism tactics “the name is different”…….WHY IN THE WORLD tax payers would bail stupidity (I guess for the greater good of the economy – and the pocket of the super rich/wealthy..Banks, hedge funds etc). I guess the pressure here is ECONOMICAL (managed by the political group)

Bottom line is this: CAPITALISM = politicians (e.g. puppets) that are driven by CORPORATIONS interests/lobbying (e.g. the all mighty buck.)….. They say 1 thing, another is done…..

Imagine that …. put any genetically flawed human being in charge of ANY system……he/she will adventually mess it up….

[blahblahblah]

Exactly right, SD Transplant, you’ve now seen the man behind the curtain here in the US and he’s the same one that used to be hold the levers of power behind the iron curtain. The US is totally socialist, just in a different and less honest way. Look how many people work for the government either directly or indirectly. Contractors, weapons makers, Halliburton, Blackwater mercenaries, drug companies (new medicare bill) etc… all suckle the government teat while crowing endlessly about the glories of the free market.

Here’s the way I like to think about it. Communism failed because it naively assumed that only the capitalist and bourgeois classes were susceptible to cheating and dishonest, greedy behavior. Capitalism is doomed to fail because it naively assumes that the capitalist class isn’t susceptible to cheating and dishonest, greedy behavior.

Of course none of this matters if we continue voting for these same creeps over and over. Do you remember how the media would smugly report about elections in Iraq back in the 90s, when Saddam would get re-elected with 99% of the vote? We’d all chuckle and have a good laugh about their sham government — meanwhile, back in the good old U S of A, our congressional re-election rate is more than 90% for senators and 98% for representatives!. Soviet politburo members had less job security than our congressmen.

Bottom line — governments all lie, cheat, and steal. They just call it different names in different places and some are more sophisticated at it than others.

[no_such_reality]

WHY IN THE WORLD tax payers would bail stupidity

Because the Pols are playing the vote gathering card.

Voter turn out is apathetic at best, Seniors (home owners), and established middle aged citizens (home owners) vote the most.

The pols knowing that most voters are home owners either dependent of the equity for retirement or on the housing ATM are playing the “I’m protecting your home from the actions of greedy unscrupulous evil big corporations (lenders)”

Given that the majority of American pay very little tax after child credits and home interest deductions, most say why not. You can see from the IRS 2004 taxes paid table that 85% of the population have an AGI under $100,000, with an AGI between $75,000-$100,000; their average tax bill was $8500.

2/3rds have incomes under $75000, those between $50K and $75K AGI have a tax bill under $5400.

Under $40,000 AGI, that’s 60% of the population filing, less than $2500.

An AGI under $30,000, that’s half of the population filing, tax bills run under $1824.

That’s the root of the problem, too many carry too little of the burden of providing for the government programs.

[SD Transplant]

CNN MONEY article: Subprime bailout? $120 billion

http://money.cnn.com/2007/04/13/real_estate/subprimebailout_cost.moneymag/index.htm?postversion=2007041314

POLL RESULTS – so far

1. Should subprime borrowers be bailed out?
Yes 9%
No 91%

total responses to this question: 2625

[no_such_reality]

Such a tragic tale. Immigrant Farmer making $15,000 get’s $720,000 loan and can’t afford it

I know, you’re all shocked.

There’s no bailing this out. There’s throwing the executive mmanagement team of New Century and others like them in jail, real jail. As well as the realtors and brokers that participated in theses schemes. That’s the only bailout that will fix this mess.

[little lady]

“Such a tragic tale. Immigrant Farmer making $15,000 get’s $720,000 loan and can’t afford it”

That’s what I am talkin”bout, there is NO WAY to refinance to get this guy to be able to pay unless he’s got like a ’90 year loan!

[Anonymous]

I guess the big question becomes – what percent of these loans are salvageable vs. how many are like the people cited in the article?

If there are many families that simply can’t afford any loan, then how can bail outs even work? Is a 90 year loan something that is feasible (forgetting for a moment that it would make people basically like serfs or indentured servants)? Is there any precedent, either here or in other countries, for something like that?

[blahblahblah]

If the banks and hedge funds succeed in convincing the government to bail them out, you’d probably be surprised how many of these they could salvage. Let’s say there are 1M households that need an additional $10K/year in help to make their payments, then that’s $10B. The government probably spends that much every month in Iraq. Be afraid, be very afraid of the bailout, it will hurt everyone who saved and was responsible and help all of the irresponsible ones, most of all the banks that made these crazy loans in the first place.

[SD Transplant]

[img_assist|nid=3149|title=Capitalist Worker|desc=Folks, I guess I found the answer to my questions in the attached cartoon….pretty much confirms & sums up our talk vis-a-vis this subject matter. Enjoy,|link=node|align=left|width=466|height=428]

[SD Transplant]

[img_assist|nid=3151|title=Hierarchy – Elected Politicians to Represent the People|desc=I almost forgot to provide a complete picture of how our elected goverment considers our input with respect the the housing bailout……|link=node|align=left|width=466|height=436]

[Author]

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