Publicly Humiliate Non-Paying Debtors!

[patientrenter]

TheBreeze wrote: “The home “buyers” who made out best over the last 8 years were those who didn’t put anything down and got either an Interest-Only mortgage or a Pay Option mortgage. Because mortgages are non-recourse, not putting anything down and paying only the interest (or less) allows the “buyer” to take any appreciation upside while sticking any depreciation downside to the bank (by defaulting). Home buyers who got screwed the worst over the last 8 years were those who made down payments as that down payment has now evaporated with home price depreciation.”

You are correct. It was smart of the no-downpayment buyers to take advantage of cheap call options on home prices being offered by lenders. It was idiotic of the taxpayers and lenders to permit this to happen. Financial losses now are providing an effective incentive for private investors to require 20% or higher downpayments in the future. But govt schemes are still allowing homes to be bought with less than 20% of the buyer’s personal savings at risk. And Barney Frank and Chris Dodd are the prime movers behind this part of the screwed-up system. They won’t let go of this lunacy until Democrats like you call them on it.

[TheBreeze]

[quote=patientrenter]But govt schemes are still allowing homes to be bought with less than 20% of the buyer’s personal savings at risk. And Barney Frank and Chris Dodd are the prime movers behind this part of the screwed-up system. They won’t let go of this lunacy until Democrats like you call them on it.
[/quote]

I’m registered as a nonpartisan. I plan to vote against incumbent Representative Democrat Susan A. Davis since she voted for the bailout. If I could legally vote against Frank and Dodd I would.

I do plan to vote for Obama as I feel he is very intelligent and is a better choice than McCain (McCain being the originator of the brilliant idea to buy every mortgage on an underwater home and reset the principal to the current market price of the home).

I’d like to see the government get out of mortgages and home ownership completely. Just think how cheap house prices would be if FHA, Fannie Mae, and Freddie Mac were eliminated and the Fed mandated that homeowners had to put 20% down. That would be an ideal world for responsible people.

[TheBreeze]

[quote=patientrenter]But govt schemes are still allowing homes to be bought with less than 20% of the buyer’s personal savings at risk. And Barney Frank and Chris Dodd are the prime movers behind this part of the screwed-up system. They won’t let go of this lunacy until Democrats like you call them on it.
[/quote]

I’m registered as a nonpartisan. I plan to vote against incumbent Representative Democrat Susan A. Davis since she voted for the bailout. If I could legally vote against Frank and Dodd I would.

I do plan to vote for Obama as I feel he is very intelligent and is a better choice than McCain (McCain being the originator of the brilliant idea to buy every mortgage on an underwater home and reset the principal to the current market price of the home).

I’d like to see the government get out of mortgages and home ownership completely. Just think how cheap house prices would be if FHA, Fannie Mae, and Freddie Mac were eliminated and the Fed mandated that homeowners had to put 20% down. That would be an ideal world for responsible people.

[TheBreeze]

[quote=patientrenter]But govt schemes are still allowing homes to be bought with less than 20% of the buyer’s personal savings at risk. And Barney Frank and Chris Dodd are the prime movers behind this part of the screwed-up system. They won’t let go of this lunacy until Democrats like you call them on it.
[/quote]

I’m registered as a nonpartisan. I plan to vote against incumbent Representative Democrat Susan A. Davis since she voted for the bailout. If I could legally vote against Frank and Dodd I would.

I do plan to vote for Obama as I feel he is very intelligent and is a better choice than McCain (McCain being the originator of the brilliant idea to buy every mortgage on an underwater home and reset the principal to the current market price of the home).

I’d like to see the government get out of mortgages and home ownership completely. Just think how cheap house prices would be if FHA, Fannie Mae, and Freddie Mac were eliminated and the Fed mandated that homeowners had to put 20% down. That would be an ideal world for responsible people.

[TheBreeze]

[quote=patientrenter]But govt schemes are still allowing homes to be bought with less than 20% of the buyer’s personal savings at risk. And Barney Frank and Chris Dodd are the prime movers behind this part of the screwed-up system. They won’t let go of this lunacy until Democrats like you call them on it.
[/quote]

I’m registered as a nonpartisan. I plan to vote against incumbent Representative Democrat Susan A. Davis since she voted for the bailout. If I could legally vote against Frank and Dodd I would.

I do plan to vote for Obama as I feel he is very intelligent and is a better choice than McCain (McCain being the originator of the brilliant idea to buy every mortgage on an underwater home and reset the principal to the current market price of the home).

I’d like to see the government get out of mortgages and home ownership completely. Just think how cheap house prices would be if FHA, Fannie Mae, and Freddie Mac were eliminated and the Fed mandated that homeowners had to put 20% down. That would be an ideal world for responsible people.

[TheBreeze]

[quote=patientrenter]But govt schemes are still allowing homes to be bought with less than 20% of the buyer’s personal savings at risk. And Barney Frank and Chris Dodd are the prime movers behind this part of the screwed-up system. They won’t let go of this lunacy until Democrats like you call them on it.
[/quote]

I’m registered as a nonpartisan. I plan to vote against incumbent Representative Democrat Susan A. Davis since she voted for the bailout. If I could legally vote against Frank and Dodd I would.

I do plan to vote for Obama as I feel he is very intelligent and is a better choice than McCain (McCain being the originator of the brilliant idea to buy every mortgage on an underwater home and reset the principal to the current market price of the home).

I’d like to see the government get out of mortgages and home ownership completely. Just think how cheap house prices would be if FHA, Fannie Mae, and Freddie Mac were eliminated and the Fed mandated that homeowners had to put 20% down. That would be an ideal world for responsible people.

[jficquette]

[quote=scaredycat] student loans. I’ve almost paid mine off after 15 painful years. but today, people are graduating med school, law school with 200-250k plus in loans. it’s tough to make a go of it for some. it could turn out to be a bad bet. what if tuition kept going up as everything deflated? What if people got out of school routinely with a million in debt? at some point, wouldn’t it just be rational to say fine, I’ll get the degree, society tells me i need it to get ahead, i know i’ll never be able to pay off the loan,I’ll default, then you can garnish my salary. there’s only so much they can take, 25% or so. if your monthly payment is $5,000 a month and you take home $5,000 a month, it’s not possible you can pay your loan. yeah, you took the debt on willingly, but doesn’t society have some obligation to have tuition vaguely match up with the economic value of the degree? or at least be forbidden from putting out any propaganda that the degree is worth something and is not a liability? should there be a disclaimer or warning on your tuition statement, something like “WARNING: this debt you are incurring is toxic. it is unlikely you will ever be able to pay it back based on current salaries.” Maybe this is where it’s all gone to. the debts become crazy, speculative, bear no relation to reality…and that makes people say what the heck, why not…[/quote]

What is interesting about student loans is that they did to the price of education what free money did to the price of housing.

[jficquette]

[quote=scaredycat] student loans. I’ve almost paid mine off after 15 painful years. but today, people are graduating med school, law school with 200-250k plus in loans. it’s tough to make a go of it for some. it could turn out to be a bad bet. what if tuition kept going up as everything deflated? What if people got out of school routinely with a million in debt? at some point, wouldn’t it just be rational to say fine, I’ll get the degree, society tells me i need it to get ahead, i know i’ll never be able to pay off the loan,I’ll default, then you can garnish my salary. there’s only so much they can take, 25% or so. if your monthly payment is $5,000 a month and you take home $5,000 a month, it’s not possible you can pay your loan. yeah, you took the debt on willingly, but doesn’t society have some obligation to have tuition vaguely match up with the economic value of the degree? or at least be forbidden from putting out any propaganda that the degree is worth something and is not a liability? should there be a disclaimer or warning on your tuition statement, something like “WARNING: this debt you are incurring is toxic. it is unlikely you will ever be able to pay it back based on current salaries.” Maybe this is where it’s all gone to. the debts become crazy, speculative, bear no relation to reality…and that makes people say what the heck, why not…[/quote]

What is interesting about student loans is that they did to the price of education what free money did to the price of housing.

[jficquette]

[quote=scaredycat] student loans. I’ve almost paid mine off after 15 painful years. but today, people are graduating med school, law school with 200-250k plus in loans. it’s tough to make a go of it for some. it could turn out to be a bad bet. what if tuition kept going up as everything deflated? What if people got out of school routinely with a million in debt? at some point, wouldn’t it just be rational to say fine, I’ll get the degree, society tells me i need it to get ahead, i know i’ll never be able to pay off the loan,I’ll default, then you can garnish my salary. there’s only so much they can take, 25% or so. if your monthly payment is $5,000 a month and you take home $5,000 a month, it’s not possible you can pay your loan. yeah, you took the debt on willingly, but doesn’t society have some obligation to have tuition vaguely match up with the economic value of the degree? or at least be forbidden from putting out any propaganda that the degree is worth something and is not a liability? should there be a disclaimer or warning on your tuition statement, something like “WARNING: this debt you are incurring is toxic. it is unlikely you will ever be able to pay it back based on current salaries.” Maybe this is where it’s all gone to. the debts become crazy, speculative, bear no relation to reality…and that makes people say what the heck, why not…[/quote]

What is interesting about student loans is that they did to the price of education what free money did to the price of housing.

[jficquette]

[quote=scaredycat] student loans. I’ve almost paid mine off after 15 painful years. but today, people are graduating med school, law school with 200-250k plus in loans. it’s tough to make a go of it for some. it could turn out to be a bad bet. what if tuition kept going up as everything deflated? What if people got out of school routinely with a million in debt? at some point, wouldn’t it just be rational to say fine, I’ll get the degree, society tells me i need it to get ahead, i know i’ll never be able to pay off the loan,I’ll default, then you can garnish my salary. there’s only so much they can take, 25% or so. if your monthly payment is $5,000 a month and you take home $5,000 a month, it’s not possible you can pay your loan. yeah, you took the debt on willingly, but doesn’t society have some obligation to have tuition vaguely match up with the economic value of the degree? or at least be forbidden from putting out any propaganda that the degree is worth something and is not a liability? should there be a disclaimer or warning on your tuition statement, something like “WARNING: this debt you are incurring is toxic. it is unlikely you will ever be able to pay it back based on current salaries.” Maybe this is where it’s all gone to. the debts become crazy, speculative, bear no relation to reality…and that makes people say what the heck, why not…[/quote]

What is interesting about student loans is that they did to the price of education what free money did to the price of housing.

[jficquette]

[quote=scaredycat] student loans. I’ve almost paid mine off after 15 painful years. but today, people are graduating med school, law school with 200-250k plus in loans. it’s tough to make a go of it for some. it could turn out to be a bad bet. what if tuition kept going up as everything deflated? What if people got out of school routinely with a million in debt? at some point, wouldn’t it just be rational to say fine, I’ll get the degree, society tells me i need it to get ahead, i know i’ll never be able to pay off the loan,I’ll default, then you can garnish my salary. there’s only so much they can take, 25% or so. if your monthly payment is $5,000 a month and you take home $5,000 a month, it’s not possible you can pay your loan. yeah, you took the debt on willingly, but doesn’t society have some obligation to have tuition vaguely match up with the economic value of the degree? or at least be forbidden from putting out any propaganda that the degree is worth something and is not a liability? should there be a disclaimer or warning on your tuition statement, something like “WARNING: this debt you are incurring is toxic. it is unlikely you will ever be able to pay it back based on current salaries.” Maybe this is where it’s all gone to. the debts become crazy, speculative, bear no relation to reality…and that makes people say what the heck, why not…[/quote]

What is interesting about student loans is that they did to the price of education what free money did to the price of housing.

[patientrenter]

TheBreeze, I’d vote for Obama if I could. (I am not a US citizen.) I am hoping he pursues a Clinton-style fiscal policy, without the Greenspan bubbles. McCain doesn’t seem able to understand economics well enough to say no to someone like a Bernanke. Both appear very weak to me, to be honest, since they are still mostly talking about how much more they want to spend, and what they want to do to reward those who were irresponsible.

So it turns out we are not very far apart on key issues. Getting govt out of housing entirely would be the best thing for the economy in 30 years. I could take almost anything in return for that.

[patientrenter]

TheBreeze, I’d vote for Obama if I could. (I am not a US citizen.) I am hoping he pursues a Clinton-style fiscal policy, without the Greenspan bubbles. McCain doesn’t seem able to understand economics well enough to say no to someone like a Bernanke. Both appear very weak to me, to be honest, since they are still mostly talking about how much more they want to spend, and what they want to do to reward those who were irresponsible.

So it turns out we are not very far apart on key issues. Getting govt out of housing entirely would be the best thing for the economy in 30 years. I could take almost anything in return for that.

[patientrenter]

TheBreeze, I’d vote for Obama if I could. (I am not a US citizen.) I am hoping he pursues a Clinton-style fiscal policy, without the Greenspan bubbles. McCain doesn’t seem able to understand economics well enough to say no to someone like a Bernanke. Both appear very weak to me, to be honest, since they are still mostly talking about how much more they want to spend, and what they want to do to reward those who were irresponsible.

So it turns out we are not very far apart on key issues. Getting govt out of housing entirely would be the best thing for the economy in 30 years. I could take almost anything in return for that.

[patientrenter]

TheBreeze, I’d vote for Obama if I could. (I am not a US citizen.) I am hoping he pursues a Clinton-style fiscal policy, without the Greenspan bubbles. McCain doesn’t seem able to understand economics well enough to say no to someone like a Bernanke. Both appear very weak to me, to be honest, since they are still mostly talking about how much more they want to spend, and what they want to do to reward those who were irresponsible.

So it turns out we are not very far apart on key issues. Getting govt out of housing entirely would be the best thing for the economy in 30 years. I could take almost anything in return for that.

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