Increasing numbers of Americans are simply walking away from their houses

[cr]

I think he means a flat 1.5% the moment a home in the area goes into foreclosure.

Here’s a question though: would you prefer people walk on their mortgages or the government bail them out?

Both have negative moral implications. People walking out will cause banks to make up the loss on new loans, while a bailout will tend to keep prices inflated.

Given that I have to say I’d rather see people walk. As banks raise rates to cover their losses, it should drive down demand even more.

[donaldduckmoore]

Those people who walk away should be banned from any house purchase and any kind of borrowing including auto loans for 10 years or longer. They were already irresponsible to inflate the housing bubble back then and they should not be allowed to be irresponsible for any kind of financial responsibilities anymore from now on. Let them be renters forever.

[donaldduckmoore]

Those people who walk away should be banned from any house purchase and any kind of borrowing including auto loans for 10 years or longer. They were already irresponsible to inflate the housing bubble back then and they should not be allowed to be irresponsible for any kind of financial responsibilities anymore from now on. Let them be renters forever.

[donaldduckmoore]

Those people who walk away should be banned from any house purchase and any kind of borrowing including auto loans for 10 years or longer. They were already irresponsible to inflate the housing bubble back then and they should not be allowed to be irresponsible for any kind of financial responsibilities anymore from now on. Let them be renters forever.

[donaldduckmoore]

Those people who walk away should be banned from any house purchase and any kind of borrowing including auto loans for 10 years or longer. They were already irresponsible to inflate the housing bubble back then and they should not be allowed to be irresponsible for any kind of financial responsibilities anymore from now on. Let them be renters forever.

[donaldduckmoore]

Those people who walk away should be banned from any house purchase and any kind of borrowing including auto loans for 10 years or longer. They were already irresponsible to inflate the housing bubble back then and they should not be allowed to be irresponsible for any kind of financial responsibilities anymore from now on. Let them be renters forever.

[SDEngineer]

While we’re at it, can we ban any bank that did the various no-doc loans from being allowed to lend for 10 years or longer? They were equally irresponsible and complicit in the housing bubble inflation and clearly their executives and employees placed short term personal financial gains far above the integrity of their company and the financial sector as a whole, and therefore should not be allowed any kind of fiduciary responsibilities from now on.

It took both sides, equally motivated by greed, for this bubble to occur. Blaming the owners – most of whom aren’t expected to be financial experts (unlike, say, the mortgage underwriters, investment bank and portfolio managers, etc) – for excercising a legal (in CA anyway) out of a contract that was written in arcane terms that most laymen would be unlikely to understand is hardly fair.

Yeah, the owners were partially at fault, and certainly they were trying to climb on the greed train. But most of them I doubt did so in bad faith – they were simply guilty of believing what they were told by people that they believed were much more knowledgable about the market than they were. It’s the ones who SHOULD have been more knowledgable about the market (ie – the guys above, the realtors, the market analysts, the portfolio managers, etc) that should lose their jobs and their cushy incomes for being so utterly wrong (intentionally or otherwise) about the state of housing in the US. Either malfeasance (if they ignored it due to greed) or incompetence (if they simply didn’t see it coming) as a reason for termination will do.

[SDEngineer]

While we’re at it, can we ban any bank that did the various no-doc loans from being allowed to lend for 10 years or longer? They were equally irresponsible and complicit in the housing bubble inflation and clearly their executives and employees placed short term personal financial gains far above the integrity of their company and the financial sector as a whole, and therefore should not be allowed any kind of fiduciary responsibilities from now on.

It took both sides, equally motivated by greed, for this bubble to occur. Blaming the owners – most of whom aren’t expected to be financial experts (unlike, say, the mortgage underwriters, investment bank and portfolio managers, etc) – for excercising a legal (in CA anyway) out of a contract that was written in arcane terms that most laymen would be unlikely to understand is hardly fair.

Yeah, the owners were partially at fault, and certainly they were trying to climb on the greed train. But most of them I doubt did so in bad faith – they were simply guilty of believing what they were told by people that they believed were much more knowledgable about the market than they were. It’s the ones who SHOULD have been more knowledgable about the market (ie – the guys above, the realtors, the market analysts, the portfolio managers, etc) that should lose their jobs and their cushy incomes for being so utterly wrong (intentionally or otherwise) about the state of housing in the US. Either malfeasance (if they ignored it due to greed) or incompetence (if they simply didn’t see it coming) as a reason for termination will do.

[SDEngineer]

While we’re at it, can we ban any bank that did the various no-doc loans from being allowed to lend for 10 years or longer? They were equally irresponsible and complicit in the housing bubble inflation and clearly their executives and employees placed short term personal financial gains far above the integrity of their company and the financial sector as a whole, and therefore should not be allowed any kind of fiduciary responsibilities from now on.

It took both sides, equally motivated by greed, for this bubble to occur. Blaming the owners – most of whom aren’t expected to be financial experts (unlike, say, the mortgage underwriters, investment bank and portfolio managers, etc) – for excercising a legal (in CA anyway) out of a contract that was written in arcane terms that most laymen would be unlikely to understand is hardly fair.

Yeah, the owners were partially at fault, and certainly they were trying to climb on the greed train. But most of them I doubt did so in bad faith – they were simply guilty of believing what they were told by people that they believed were much more knowledgable about the market than they were. It’s the ones who SHOULD have been more knowledgable about the market (ie – the guys above, the realtors, the market analysts, the portfolio managers, etc) that should lose their jobs and their cushy incomes for being so utterly wrong (intentionally or otherwise) about the state of housing in the US. Either malfeasance (if they ignored it due to greed) or incompetence (if they simply didn’t see it coming) as a reason for termination will do.

[SDEngineer]

While we’re at it, can we ban any bank that did the various no-doc loans from being allowed to lend for 10 years or longer? They were equally irresponsible and complicit in the housing bubble inflation and clearly their executives and employees placed short term personal financial gains far above the integrity of their company and the financial sector as a whole, and therefore should not be allowed any kind of fiduciary responsibilities from now on.

It took both sides, equally motivated by greed, for this bubble to occur. Blaming the owners – most of whom aren’t expected to be financial experts (unlike, say, the mortgage underwriters, investment bank and portfolio managers, etc) – for excercising a legal (in CA anyway) out of a contract that was written in arcane terms that most laymen would be unlikely to understand is hardly fair.

Yeah, the owners were partially at fault, and certainly they were trying to climb on the greed train. But most of them I doubt did so in bad faith – they were simply guilty of believing what they were told by people that they believed were much more knowledgable about the market than they were. It’s the ones who SHOULD have been more knowledgable about the market (ie – the guys above, the realtors, the market analysts, the portfolio managers, etc) that should lose their jobs and their cushy incomes for being so utterly wrong (intentionally or otherwise) about the state of housing in the US. Either malfeasance (if they ignored it due to greed) or incompetence (if they simply didn’t see it coming) as a reason for termination will do.

[SDEngineer]

While we’re at it, can we ban any bank that did the various no-doc loans from being allowed to lend for 10 years or longer? They were equally irresponsible and complicit in the housing bubble inflation and clearly their executives and employees placed short term personal financial gains far above the integrity of their company and the financial sector as a whole, and therefore should not be allowed any kind of fiduciary responsibilities from now on.

It took both sides, equally motivated by greed, for this bubble to occur. Blaming the owners – most of whom aren’t expected to be financial experts (unlike, say, the mortgage underwriters, investment bank and portfolio managers, etc) – for excercising a legal (in CA anyway) out of a contract that was written in arcane terms that most laymen would be unlikely to understand is hardly fair.

Yeah, the owners were partially at fault, and certainly they were trying to climb on the greed train. But most of them I doubt did so in bad faith – they were simply guilty of believing what they were told by people that they believed were much more knowledgable about the market than they were. It’s the ones who SHOULD have been more knowledgable about the market (ie – the guys above, the realtors, the market analysts, the portfolio managers, etc) that should lose their jobs and their cushy incomes for being so utterly wrong (intentionally or otherwise) about the state of housing in the US. Either malfeasance (if they ignored it due to greed) or incompetence (if they simply didn’t see it coming) as a reason for termination will do.

[donaldduckmoore]

If there is evidence that all no-doc loans are bad loans, then that is a regulatory problem and a gray area for people to walk on. The government should pay attention to it and to correct it.

For owners, buying a house is a big deal. Of course one can always complaint about others not telling them in advance. These people are adults. But if one do not think they can afford a house at certain price yet they still buy it with all sorts of exotic loans, then I think these owners have more to be blamed. Further, once they hook on the financial responsibility, they have the obligation to commit the it until it ends. House price always goes up and down, it is like investment. If these people are buying a house to live in, who really cares about the up and down and the fluctuation of the market should not really affect their lives. But these days, buying houses or walking away from houses becomes a fashion and everybody is just doing what other people are doing without considering the consequences. These are the people to blame.

Besides, this is an issue of morality. If they think that it is easy to get a loan and easy to give up their responsibility, then they can do the same thing to a car loan or any other sorts of loan and they can walk away without further thinking. This attitude will create financial chaos not only to these people but to other people that are more financially responsible, such as tax payers like us.

[donaldduckmoore]

If there is evidence that all no-doc loans are bad loans, then that is a regulatory problem and a gray area for people to walk on. The government should pay attention to it and to correct it.

For owners, buying a house is a big deal. Of course one can always complaint about others not telling them in advance. These people are adults. But if one do not think they can afford a house at certain price yet they still buy it with all sorts of exotic loans, then I think these owners have more to be blamed. Further, once they hook on the financial responsibility, they have the obligation to commit the it until it ends. House price always goes up and down, it is like investment. If these people are buying a house to live in, who really cares about the up and down and the fluctuation of the market should not really affect their lives. But these days, buying houses or walking away from houses becomes a fashion and everybody is just doing what other people are doing without considering the consequences. These are the people to blame.

Besides, this is an issue of morality. If they think that it is easy to get a loan and easy to give up their responsibility, then they can do the same thing to a car loan or any other sorts of loan and they can walk away without further thinking. This attitude will create financial chaos not only to these people but to other people that are more financially responsible, such as tax payers like us.

[donaldduckmoore]

If there is evidence that all no-doc loans are bad loans, then that is a regulatory problem and a gray area for people to walk on. The government should pay attention to it and to correct it.

For owners, buying a house is a big deal. Of course one can always complaint about others not telling them in advance. These people are adults. But if one do not think they can afford a house at certain price yet they still buy it with all sorts of exotic loans, then I think these owners have more to be blamed. Further, once they hook on the financial responsibility, they have the obligation to commit the it until it ends. House price always goes up and down, it is like investment. If these people are buying a house to live in, who really cares about the up and down and the fluctuation of the market should not really affect their lives. But these days, buying houses or walking away from houses becomes a fashion and everybody is just doing what other people are doing without considering the consequences. These are the people to blame.

Besides, this is an issue of morality. If they think that it is easy to get a loan and easy to give up their responsibility, then they can do the same thing to a car loan or any other sorts of loan and they can walk away without further thinking. This attitude will create financial chaos not only to these people but to other people that are more financially responsible, such as tax payers like us.

[donaldduckmoore]

If there is evidence that all no-doc loans are bad loans, then that is a regulatory problem and a gray area for people to walk on. The government should pay attention to it and to correct it.

For owners, buying a house is a big deal. Of course one can always complaint about others not telling them in advance. These people are adults. But if one do not think they can afford a house at certain price yet they still buy it with all sorts of exotic loans, then I think these owners have more to be blamed. Further, once they hook on the financial responsibility, they have the obligation to commit the it until it ends. House price always goes up and down, it is like investment. If these people are buying a house to live in, who really cares about the up and down and the fluctuation of the market should not really affect their lives. But these days, buying houses or walking away from houses becomes a fashion and everybody is just doing what other people are doing without considering the consequences. These are the people to blame.

Besides, this is an issue of morality. If they think that it is easy to get a loan and easy to give up their responsibility, then they can do the same thing to a car loan or any other sorts of loan and they can walk away without further thinking. This attitude will create financial chaos not only to these people but to other people that are more financially responsible, such as tax payers like us.

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