So it is a bailout then

[TheBreeze]

At first I thought the Paulson plan wasn’t a bailout. But after reading the article posted by Rich today, it is obvious that the Paulson plan is a bailout. The bailout comes in the form of letting subprime borrowers who wouldn’t otherwise be able to qualify for a government-guaranteed mortgage refinance into the FHASecure plan.

As I understand it, the borrowers that will be allowed to refinance into FHASecure will essentially have no equity and can have missed a few payments in the last 12 months — not exactly the type of borrower that any sensible entity would want to guarantee.

Taking this plan to its logical conclusion, it looks like as house prices continue to decline, more and more borrowers will approach the 0% equity threshold and be eligible for FHASecure. Reckless borrowers/lenders will be rewarded and prudent savers like ourselves will once again be punished.

We live in a society where gains are privatized and losses are socialized. Our own government is playing all of us Piggs for suckers.

[4plexowner]

can you say, “Ron Paul?”

money bomb #2 on December 16th

https://www.ronpaul2008.com/donate/

[4plexowner]

can you say, “Ron Paul?”

money bomb #2 on December 16th

https://www.ronpaul2008.com/donate/

[4plexowner]

can you say, “Ron Paul?”

money bomb #2 on December 16th

https://www.ronpaul2008.com/donate/

[4plexowner]

can you say, “Ron Paul?”

money bomb #2 on December 16th

https://www.ronpaul2008.com/donate/

[4plexowner]

can you say, “Ron Paul?”

money bomb #2 on December 16th

https://www.ronpaul2008.com/donate/

[michael]

The bailout has been well underway…

http://www.ft.com/cms/s/0/0a487d16-a857-11dc-9485-0000779fd2ac.html

[michael]

The bailout has been well underway…

http://www.ft.com/cms/s/0/0a487d16-a857-11dc-9485-0000779fd2ac.html

[michael]

The bailout has been well underway…

http://www.ft.com/cms/s/0/0a487d16-a857-11dc-9485-0000779fd2ac.html

[michael]

The bailout has been well underway…

http://www.ft.com/cms/s/0/0a487d16-a857-11dc-9485-0000779fd2ac.html

[michael]

The bailout has been well underway…

http://www.ft.com/cms/s/0/0a487d16-a857-11dc-9485-0000779fd2ac.html

[HLS]

The original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.

Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.

One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.

Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.

In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.

Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.

What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.

Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.

[HLS]

The original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.

Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.

One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.

Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.

In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.

Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.

What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.

Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.

[HLS]

The original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.

Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.

One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.

Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.

In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.

Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.

What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.

Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.

[HLS]

The original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.

Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.

One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.

Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.

In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.

Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.

What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.

Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.

[Author]

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