Posted on 05/12/2008 1:25:44 PM PDT by KatyLoraleyVidales
President Bush threatened to veto the Foreclosure Bill proposed by the democrats. *link*
This bill created by democrats wants to allocation billions of taxpayer funds to bail out individuals who basically bit off more they can chew it attempts to prevent foreclosure on homes across the county. Rep. Neugebauer from Texas brings up a valid point “The American people don’t want to make their neighbor’s payment when they’re having trouble making their own”, which is precisely what this bill would do. Assuming the bill passes, and homeowners are pulled from the brink of defaulting on their mortgage loan, what makes anyone think these people will be able to afford the TAXES on their homes if they can’t afford the home itself? At which point where they default on paying their taxes, they will again face foreclosure. Then what democrats? Or don’t you think that far ahead? If it’s not the house payment it will be the taxes on the house payment that these people will more than likely default on. I happen to work at a law office that specialize in this area of law and thus see this scenario on a daily basis. The point remains that they cannot afford to live in the lifestyle they have chosen and thus should more than likely downgrade or downsize their spending to accommodate their income; rather than require the federal government to bail them out at taxpayer’s expense...
(Excerpt) Read more at rightupfront.org ...
I take it this was Barney Franks housing gambler bailout bill of stupidity. Good riddens. I heard it was destined for the garbage can were it belonged.
The article contained a glaring error. The borrowers who defaulted would not get any sort of bailout. The banks who lent to them however would get a reward, and encouragement to engage in such practices once more.
How many of these defaults are by the "get rich quick" doofuses who are flipping houses by the dozens, in order to get rich quick?
We got to bail them all out too?
Well let’s hope it gets quashed. It’s like forcing the Oil companies to pay higher taxes for “wind-fall” profits or forcing them to explore alternative energy. They just pass the savings on to the customer.
Why don’t they just buy a house for all the renters? At least they were smart enough not to bite off more than they could chew.
Make the banks eat the stupid mortgages they gave out and they will simply compensate by issuing more stock and borrowing more money to raise capital (which is already happening), diluting the value of existing shares and taking the "payment" out of the American taxpayer's 401k's, which are invested in vehicles like the "Happy Valley Ever Appreciating Domestic Growth Fund", loaded up with equity and debt from major mortgage fiasco players like Citigroup and Bank of America.
It's OK to veto a formal bailout, but the informal bailout will proceed regardless. They've got many ways to socialize their losses.
The bill is just another way of taking money from those who have and giving it to those who don’t have - the most basic tenet in communism.
exactly! My wife and I did not buy in the inflated market because we could not afford it. Big mistake on our part. Should have just bought, re-financed, and partied.
Having a business eat their losses is not ‘socializing their losses’.
The business owners (stockholders) should be the ones taking the loss. Not tax payers.
It’s not unlike what happened when the ‘Money Store’ went broke. In that case a large chunk of the capital came from a certain old money east coast family (the DuPonts).
All I could say after the founder of ‘the Money Store’ walked away with millions and the investors lost their funds...’Nice job redistributing the wealth guys! A fool and his money were lucky to get together in the first place!’
The looting of the coffers continues.
you should have run up your HELOC and bought new cars, a boat, Bose radio, and took a big vacation to Vegas...why be responsible anymore in this country...it doesn’t pay.
what coffers?.....we have no coffers in this country.
Minorities were supposedly being discriminated against for Mortgages, so the Gubmint puts the screws to the Mortgage Lenders to make loans that should have never been made to even the playing field.
The law of unintended consequences. The guilty parties are long gone, so the current (Republican) Administration gets the blame for the fallout.
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