govt intervention

[SK in CV]

[quote=patientrenter][
Why argue with SK in CV? I like his (or her) reasoning. Using it, I can now quit being prudent. I can buy the home I ‘deserve’, without paying for it. And I would like to own a Ferrari. Until now, I thought that would be a bit extravagant. But if I don’t have to pay for it, it’s quite sensible to go get one. I could go on, but I think you can see how SK in CV’s world is wonderful.

His argument is quite respectable these days. Ben Bernanke agrees, as does Larry Summers, and Tim Geithner, and Barney Frank, and so on. How is it being sold to the general public? Well, if we don’t do this, our banking system will collapse, and if that happens our economy will collapse. So there’s a good reason to do these things that are counter to our own commonsense. We troglodytes with our dull commonsense are too stupid to understand what these financial wizards understand. Never mind that these wizards were cheering as the bubble inflated and trillions in bad loans were being made.[/quote]

You think it’s all about the borrowers. It isn’t. It’s about the lenders.

[CA renter]

[quote=SK in CV]

Without undue influence, prices are always right. From 2002 through 2005, there was undue influence because of lending practices. An abundance of distressed properties on the market the last 2 years has provided an opposite undue influence. Prices will find a stable level only when distressed properties become a minor part of the inventory. That stability should be the goal of both government and lenders policies.[/quote]

The “foreclosure crisis” is not some kind of freaky event that coudn’t be anticipated. If we agree that the fraudulent loans — made to people who could never pay them back — drove prices up to artificial highs, then we need to undo the effects of those mortgages by allowing the fraudulent mortgages and the artificially high prices to be wrung out of the market. This requires foreclosures which will bring prices back to **normal** levels, which in many cases is well below current “market” prices.

If anything, the govt should try to hasten the process so that we can get to the bottom more quickly. Only after we’ve reached the **real** bottom without govt intervention, can we begin a sustainable, market-based recovery.

Everything the govt is doing to prevent the “foreclosure crisis” (moratoriums, modifications, tax credits, witholding of inventory, etc.) will eventually cause far more pain than if they had let the market sort itself out. The recession will be prolonged, the money lost will be far greater and will be felt by the innocent parties as well as the guilty ones, and there will be an even greater number of mortgages that are “under water” because of the lag in price declines which causes more people to overpay on the way down…like so many are doing right now.

[CA renter]

[quote=SK in CV]

Without undue influence, prices are always right. From 2002 through 2005, there was undue influence because of lending practices. An abundance of distressed properties on the market the last 2 years has provided an opposite undue influence. Prices will find a stable level only when distressed properties become a minor part of the inventory. That stability should be the goal of both government and lenders policies.[/quote]

The “foreclosure crisis” is not some kind of freaky event that coudn’t be anticipated. If we agree that the fraudulent loans — made to people who could never pay them back — drove prices up to artificial highs, then we need to undo the effects of those mortgages by allowing the fraudulent mortgages and the artificially high prices to be wrung out of the market. This requires foreclosures which will bring prices back to **normal** levels, which in many cases is well below current “market” prices.

If anything, the govt should try to hasten the process so that we can get to the bottom more quickly. Only after we’ve reached the **real** bottom without govt intervention, can we begin a sustainable, market-based recovery.

Everything the govt is doing to prevent the “foreclosure crisis” (moratoriums, modifications, tax credits, witholding of inventory, etc.) will eventually cause far more pain than if they had let the market sort itself out. The recession will be prolonged, the money lost will be far greater and will be felt by the innocent parties as well as the guilty ones, and there will be an even greater number of mortgages that are “under water” because of the lag in price declines which causes more people to overpay on the way down…like so many are doing right now.

[CA renter]

[quote=SK in CV]

Without undue influence, prices are always right. From 2002 through 2005, there was undue influence because of lending practices. An abundance of distressed properties on the market the last 2 years has provided an opposite undue influence. Prices will find a stable level only when distressed properties become a minor part of the inventory. That stability should be the goal of both government and lenders policies.[/quote]

The “foreclosure crisis” is not some kind of freaky event that coudn’t be anticipated. If we agree that the fraudulent loans — made to people who could never pay them back — drove prices up to artificial highs, then we need to undo the effects of those mortgages by allowing the fraudulent mortgages and the artificially high prices to be wrung out of the market. This requires foreclosures which will bring prices back to **normal** levels, which in many cases is well below current “market” prices.

If anything, the govt should try to hasten the process so that we can get to the bottom more quickly. Only after we’ve reached the **real** bottom without govt intervention, can we begin a sustainable, market-based recovery.

Everything the govt is doing to prevent the “foreclosure crisis” (moratoriums, modifications, tax credits, witholding of inventory, etc.) will eventually cause far more pain than if they had let the market sort itself out. The recession will be prolonged, the money lost will be far greater and will be felt by the innocent parties as well as the guilty ones, and there will be an even greater number of mortgages that are “under water” because of the lag in price declines which causes more people to overpay on the way down…like so many are doing right now.

[CA renter]

[quote=SK in CV]

Without undue influence, prices are always right. From 2002 through 2005, there was undue influence because of lending practices. An abundance of distressed properties on the market the last 2 years has provided an opposite undue influence. Prices will find a stable level only when distressed properties become a minor part of the inventory. That stability should be the goal of both government and lenders policies.[/quote]

The “foreclosure crisis” is not some kind of freaky event that coudn’t be anticipated. If we agree that the fraudulent loans — made to people who could never pay them back — drove prices up to artificial highs, then we need to undo the effects of those mortgages by allowing the fraudulent mortgages and the artificially high prices to be wrung out of the market. This requires foreclosures which will bring prices back to **normal** levels, which in many cases is well below current “market” prices.

If anything, the govt should try to hasten the process so that we can get to the bottom more quickly. Only after we’ve reached the **real** bottom without govt intervention, can we begin a sustainable, market-based recovery.

Everything the govt is doing to prevent the “foreclosure crisis” (moratoriums, modifications, tax credits, witholding of inventory, etc.) will eventually cause far more pain than if they had let the market sort itself out. The recession will be prolonged, the money lost will be far greater and will be felt by the innocent parties as well as the guilty ones, and there will be an even greater number of mortgages that are “under water” because of the lag in price declines which causes more people to overpay on the way down…like so many are doing right now.

[CA renter]

[quote=SK in CV]

Without undue influence, prices are always right. From 2002 through 2005, there was undue influence because of lending practices. An abundance of distressed properties on the market the last 2 years has provided an opposite undue influence. Prices will find a stable level only when distressed properties become a minor part of the inventory. That stability should be the goal of both government and lenders policies.[/quote]

The “foreclosure crisis” is not some kind of freaky event that coudn’t be anticipated. If we agree that the fraudulent loans — made to people who could never pay them back — drove prices up to artificial highs, then we need to undo the effects of those mortgages by allowing the fraudulent mortgages and the artificially high prices to be wrung out of the market. This requires foreclosures which will bring prices back to **normal** levels, which in many cases is well below current “market” prices.

If anything, the govt should try to hasten the process so that we can get to the bottom more quickly. Only after we’ve reached the **real** bottom without govt intervention, can we begin a sustainable, market-based recovery.

Everything the govt is doing to prevent the “foreclosure crisis” (moratoriums, modifications, tax credits, witholding of inventory, etc.) will eventually cause far more pain than if they had let the market sort itself out. The recession will be prolonged, the money lost will be far greater and will be felt by the innocent parties as well as the guilty ones, and there will be an even greater number of mortgages that are “under water” because of the lag in price declines which causes more people to overpay on the way down…like so many are doing right now.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[Arraya]

Yes, PR the banks are responding to the will of the people. Just like with subprime. There was so many people that wanted loans the banks could not help themselves. See, the banks are super-trusting, pushovers in PRs eyes and evil strawberry picking Hummer drivers victimized the poor helpless banks.

Yeah, the banks benefit to loan modifications are not even considered. Right. It has nothing to do with trillions in bets they can’t pay as well as the easiest and quickest way to keep home prices high which their health depends on. Suurre…

[Arraya]

Yes, PR the banks are responding to the will of the people. Just like with subprime. There was so many people that wanted loans the banks could not help themselves. See, the banks are super-trusting, pushovers in PRs eyes and evil strawberry picking Hummer drivers victimized the poor helpless banks.

Yeah, the banks benefit to loan modifications are not even considered. Right. It has nothing to do with trillions in bets they can’t pay as well as the easiest and quickest way to keep home prices high which their health depends on. Suurre…

[Arraya]

Yes, PR the banks are responding to the will of the people. Just like with subprime. There was so many people that wanted loans the banks could not help themselves. See, the banks are super-trusting, pushovers in PRs eyes and evil strawberry picking Hummer drivers victimized the poor helpless banks.

Yeah, the banks benefit to loan modifications are not even considered. Right. It has nothing to do with trillions in bets they can’t pay as well as the easiest and quickest way to keep home prices high which their health depends on. Suurre…

[Arraya]

Yes, PR the banks are responding to the will of the people. Just like with subprime. There was so many people that wanted loans the banks could not help themselves. See, the banks are super-trusting, pushovers in PRs eyes and evil strawberry picking Hummer drivers victimized the poor helpless banks.

Yeah, the banks benefit to loan modifications are not even considered. Right. It has nothing to do with trillions in bets they can’t pay as well as the easiest and quickest way to keep home prices high which their health depends on. Suurre…

[Author]

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