Report shows strategic defaults increasing

[briansd1]

[quote=Russell][quote=SD Realtor]Yes they are living for free. Just remember you are paying for them. As will everyone else in your family who pays federal taxes. So each deadbeat that lives for free sucks money away from all the social programs that you feel are essential to our country.[/quote]

For some, Since it is happening on Obama’s watch, it is all good. No hypocrisy there.[/quote]

It’s not true to say that the government is directly paying for the deadbeat.

The government is bailing out the banks to prop up the economy, so we don’t all suffer a collapse.

The fact that banks choose not to foreclose on a timely basis is a side effect of accounting rules on how banks recognize loan losses; or it’s simple incompetence on the part of private banks. But those are private decisions made in the private sector.

Sure, the government has a role in providing incentives for good or bad behavior… but private citizens and business have the primary responsibility for their actions.

As for the Obama remark, bad government decisions, made years before Obama, created the financial incentives that led to the crash.

TARP and Fed led bailouts are pre-Obama. Those huge trillion-dollar programs were put in place before Obama took office. It’s not something that can be easily undone at the stroke of a pen.

This new administration is trying to mitigate the social costs of the crash.

The reality is never as simple as the headlines. (For example, Republicans never liked Medicare, but why did they not undo it (instead of expanding it like Bush did) when they were in power?).

[briansd1]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

You make an excellent point jpinpb.

Debt repayment does not contribute to economic activity. You need spending on goods and services to support the economy.

So the deadbeats are doing the right things and helping us avert a deeper recession by not paying the banks and spending on other things.

[briansd1]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

You make an excellent point jpinpb.

Debt repayment does not contribute to economic activity. You need spending on goods and services to support the economy.

So the deadbeats are doing the right things and helping us avert a deeper recession by not paying the banks and spending on other things.

[briansd1]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

You make an excellent point jpinpb.

Debt repayment does not contribute to economic activity. You need spending on goods and services to support the economy.

So the deadbeats are doing the right things and helping us avert a deeper recession by not paying the banks and spending on other things.

[briansd1]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

You make an excellent point jpinpb.

Debt repayment does not contribute to economic activity. You need spending on goods and services to support the economy.

So the deadbeats are doing the right things and helping us avert a deeper recession by not paying the banks and spending on other things.

[briansd1]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

You make an excellent point jpinpb.

Debt repayment does not contribute to economic activity. You need spending on goods and services to support the economy.

So the deadbeats are doing the right things and helping us avert a deeper recession by not paying the banks and spending on other things.

[SD Realtor]

This has nothing to do with obama. This has to do with tax money. It doesn’t matter if you are renting a home or not paying on the mortgage because if you are doing either, then you are squatting. Those here who think it is a good thing have never been landlords or owned rental property. Nobody gets to live in a house for free. Somebody pays when someone else is a freeloader. Plain and simple.

I agree private citizens and businesses do have a primary responsibility for their actions. If none of this bailout happens banks foreclose and liquidate properties in a timely manner. People go find places to rent and live within their means. Prices fall and old debt is wiped out. New money comes into the system and creates a stronger foundation and fundamentally lower price levels. It hurts. Weaker financial institutions fail and stronger ones emerge.

Stop with the economy would have crashed and we all would be living in caves excuse about the bailouts okay? Bush sucked and Obama sucked and they were nothing but yes men to Wall Street.

There is no “new administration”. Republicans and democrats are all controlled by Wall Street. The current administration has a spokesman who is very good at what he does. If you noticed Wall Street seems to be very happy with him.

Banks are not foreclosing because they don’t have to, and more and more legislation is being pushed to create more hurdles to prevent foreclosures. Imagine how many hard working people who saved money could be in homes by now if the housing market would have been left alone. People who have no business owning homes are still in them, living in default, getting loan mods and now reductions in their balance.

The social costs of the crash… really now, to think that there could have been no better way to let the market normalize that would have resulted in a much healthier market AND saved taxpayer money is quite closed minded. However, there is no way that could have happened right? Why not? Because they told us so! In the end the social cost of not allowing the crash could be a hell of alot more damaging.

To applaud people for essentially squatting is ridiculous.

[SD Realtor]

This has nothing to do with obama. This has to do with tax money. It doesn’t matter if you are renting a home or not paying on the mortgage because if you are doing either, then you are squatting. Those here who think it is a good thing have never been landlords or owned rental property. Nobody gets to live in a house for free. Somebody pays when someone else is a freeloader. Plain and simple.

I agree private citizens and businesses do have a primary responsibility for their actions. If none of this bailout happens banks foreclose and liquidate properties in a timely manner. People go find places to rent and live within their means. Prices fall and old debt is wiped out. New money comes into the system and creates a stronger foundation and fundamentally lower price levels. It hurts. Weaker financial institutions fail and stronger ones emerge.

Stop with the economy would have crashed and we all would be living in caves excuse about the bailouts okay? Bush sucked and Obama sucked and they were nothing but yes men to Wall Street.

There is no “new administration”. Republicans and democrats are all controlled by Wall Street. The current administration has a spokesman who is very good at what he does. If you noticed Wall Street seems to be very happy with him.

Banks are not foreclosing because they don’t have to, and more and more legislation is being pushed to create more hurdles to prevent foreclosures. Imagine how many hard working people who saved money could be in homes by now if the housing market would have been left alone. People who have no business owning homes are still in them, living in default, getting loan mods and now reductions in their balance.

The social costs of the crash… really now, to think that there could have been no better way to let the market normalize that would have resulted in a much healthier market AND saved taxpayer money is quite closed minded. However, there is no way that could have happened right? Why not? Because they told us so! In the end the social cost of not allowing the crash could be a hell of alot more damaging.

To applaud people for essentially squatting is ridiculous.

[SD Realtor]

This has nothing to do with obama. This has to do with tax money. It doesn’t matter if you are renting a home or not paying on the mortgage because if you are doing either, then you are squatting. Those here who think it is a good thing have never been landlords or owned rental property. Nobody gets to live in a house for free. Somebody pays when someone else is a freeloader. Plain and simple.

I agree private citizens and businesses do have a primary responsibility for their actions. If none of this bailout happens banks foreclose and liquidate properties in a timely manner. People go find places to rent and live within their means. Prices fall and old debt is wiped out. New money comes into the system and creates a stronger foundation and fundamentally lower price levels. It hurts. Weaker financial institutions fail and stronger ones emerge.

Stop with the economy would have crashed and we all would be living in caves excuse about the bailouts okay? Bush sucked and Obama sucked and they were nothing but yes men to Wall Street.

There is no “new administration”. Republicans and democrats are all controlled by Wall Street. The current administration has a spokesman who is very good at what he does. If you noticed Wall Street seems to be very happy with him.

Banks are not foreclosing because they don’t have to, and more and more legislation is being pushed to create more hurdles to prevent foreclosures. Imagine how many hard working people who saved money could be in homes by now if the housing market would have been left alone. People who have no business owning homes are still in them, living in default, getting loan mods and now reductions in their balance.

The social costs of the crash… really now, to think that there could have been no better way to let the market normalize that would have resulted in a much healthier market AND saved taxpayer money is quite closed minded. However, there is no way that could have happened right? Why not? Because they told us so! In the end the social cost of not allowing the crash could be a hell of alot more damaging.

To applaud people for essentially squatting is ridiculous.

[SD Realtor]

This has nothing to do with obama. This has to do with tax money. It doesn’t matter if you are renting a home or not paying on the mortgage because if you are doing either, then you are squatting. Those here who think it is a good thing have never been landlords or owned rental property. Nobody gets to live in a house for free. Somebody pays when someone else is a freeloader. Plain and simple.

I agree private citizens and businesses do have a primary responsibility for their actions. If none of this bailout happens banks foreclose and liquidate properties in a timely manner. People go find places to rent and live within their means. Prices fall and old debt is wiped out. New money comes into the system and creates a stronger foundation and fundamentally lower price levels. It hurts. Weaker financial institutions fail and stronger ones emerge.

Stop with the economy would have crashed and we all would be living in caves excuse about the bailouts okay? Bush sucked and Obama sucked and they were nothing but yes men to Wall Street.

There is no “new administration”. Republicans and democrats are all controlled by Wall Street. The current administration has a spokesman who is very good at what he does. If you noticed Wall Street seems to be very happy with him.

Banks are not foreclosing because they don’t have to, and more and more legislation is being pushed to create more hurdles to prevent foreclosures. Imagine how many hard working people who saved money could be in homes by now if the housing market would have been left alone. People who have no business owning homes are still in them, living in default, getting loan mods and now reductions in their balance.

The social costs of the crash… really now, to think that there could have been no better way to let the market normalize that would have resulted in a much healthier market AND saved taxpayer money is quite closed minded. However, there is no way that could have happened right? Why not? Because they told us so! In the end the social cost of not allowing the crash could be a hell of alot more damaging.

To applaud people for essentially squatting is ridiculous.

[SD Realtor]

This has nothing to do with obama. This has to do with tax money. It doesn’t matter if you are renting a home or not paying on the mortgage because if you are doing either, then you are squatting. Those here who think it is a good thing have never been landlords or owned rental property. Nobody gets to live in a house for free. Somebody pays when someone else is a freeloader. Plain and simple.

I agree private citizens and businesses do have a primary responsibility for their actions. If none of this bailout happens banks foreclose and liquidate properties in a timely manner. People go find places to rent and live within their means. Prices fall and old debt is wiped out. New money comes into the system and creates a stronger foundation and fundamentally lower price levels. It hurts. Weaker financial institutions fail and stronger ones emerge.

Stop with the economy would have crashed and we all would be living in caves excuse about the bailouts okay? Bush sucked and Obama sucked and they were nothing but yes men to Wall Street.

There is no “new administration”. Republicans and democrats are all controlled by Wall Street. The current administration has a spokesman who is very good at what he does. If you noticed Wall Street seems to be very happy with him.

Banks are not foreclosing because they don’t have to, and more and more legislation is being pushed to create more hurdles to prevent foreclosures. Imagine how many hard working people who saved money could be in homes by now if the housing market would have been left alone. People who have no business owning homes are still in them, living in default, getting loan mods and now reductions in their balance.

The social costs of the crash… really now, to think that there could have been no better way to let the market normalize that would have resulted in a much healthier market AND saved taxpayer money is quite closed minded. However, there is no way that could have happened right? Why not? Because they told us so! In the end the social cost of not allowing the crash could be a hell of alot more damaging.

To applaud people for essentially squatting is ridiculous.

[CA renter]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

Totally agree with this. It’s the stimulus with no name: people not having to pay housing expenses are now free to spend everywhere else. In the meantime, the taxpayers prop up the banking system.

[CA renter]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

Totally agree with this. It’s the stimulus with no name: people not having to pay housing expenses are now free to spend everywhere else. In the meantime, the taxpayers prop up the banking system.

[CA renter]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

Totally agree with this. It’s the stimulus with no name: people not having to pay housing expenses are now free to spend everywhere else. In the meantime, the taxpayers prop up the banking system.

[CA renter]

[quote=jpinpb]That’s what I keep thinking. The only reason our economy hasn’t completely collapsed is those people who are strategically not paying their mortgage are using the money for other things. Your biggest expense is housing and cars. If you don’t have to pay for housing, that’s a lot of discretionary spending. But I’m sure there are people in a bad way and not paying a mortgage could mean they have no money so nothing is going towards spending to help the economy.[/quote]

Totally agree with this. It’s the stimulus with no name: people not having to pay housing expenses are now free to spend everywhere else. In the meantime, the taxpayers prop up the banking system.

[Author]

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