Schumer calls for subprime bailout

CNN Money & Yahoo ^ | April 11, 2007

[stainlessbanner]

The federal government should offer troubled borrowers hundreds of millions of dollars to bail them out of subprime mortgage loans, several leading Democratic lawmakers said on Wednesday.

"The federal government can send in an infusion of [money] to prevent foreclosure," said Charles Schumer, a New York Democrat.

[N3WBI3]

Why not when MD was pushing this state wide we saw many freepers cheering because they either work in real estate or were speculating and did not want to lose their shirts..

[omega4412]

Could someone please explain what a subprime mortgage is?

A mortgage to someone who doesn't have a good enough credit rating to qualify for a normal mortgage. So higher risk and higher interest rates.

[gpapa]

I own some junk bond funds. I say let the market sort it out. Government intervention will only make it worse than it already is. If people are dumb enough to buy into riskly loans that is their problem, not mine.

[Mr. Jeeves]

Blue Light Special: Trillion Dollar Bailout on Aisle 2. ;)

[Myrddin]

Only if Schumer pays for it out of his checking account. Not one penny of taxpayer money should be wasted on bailing out people who contracted for loans they knew they couldn't afford. The buyers and lenders are both at fault in agreeing to a contract that both knew couldn't be sustained.

[Truth29]

This sounds like Clinton's’s statement that she was going to take from those who have resources for the common good. Each step like this lessens the motivation for Americans to work to get ahead. The burden of carrying the nonproductive, the willfully nonworking, the illegals,those who won’t take responsibility for their own actions, etc. etc. gets steadily larger.

[Citizen Soldier]

As they always say, follow the money.

[ops33]

Thank you very much.

[TampaDude]

Uh, NFW, Chucky...I’m not paying for someone else’s piss poor decision making!

[hophead]

“I’ll get the gubmint to bail me out.”

Oh, the irony!

[Fred]

and let me add...THEY BOUGHT MULTIPLE houses...trying to turn a fast buck...I read about a guy who bought 7 houses all with these types of loans...he has foreclosed on all but one at this point...he would state tons of income (which is not verified) and never have to disclose owning the other houses because NO CREDIT CHECK OR TITLE SEARCH was ever done...

[Psycho_Bunny]

For the love of Pete....

[Mo1]

Senate Ping

[onyx]

This dangerous idea better fail and fast.

[Txsleuth]

The dems have floated a lot of dumb ideas but, this one takes the cake...

[Neidermeyer]

Does anyone have the name and number of a sub-prime lender? I think I’ll go buy another house and go into default, since the Schumer wants to bail me out.
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Try Huntington Bancorp ,,, it’s my best short play right now as I can use synthetic positions and avoid all the reg T problems associated with an actual short sale,,, lots of bad alt-A loans in IN,MI,TN and PA and assets not marked to market... lets just say their “quality of earnings” is in doubt and the year over year 10Q’s look a bit odd... you might want to “go fishing” in the IBD “new lows” list S&L category ... right now the problem is limited to the rust belt as jobs are still abundant elsewhere...

[OldArmy52]

Sen Schumer is seeking to bail out the big banks that have loaned out too many shakey loans to people who should not have been qualified.

Wonder whose pocket he is in?

Not.

[Centurion2000]

OVER MY DEAD CHECKBOOK!

Nope, actually over your tax return.

[prairiebreeze]

Hubby’s been predicting the increased mortgage defaults for years now. He didn’t necessarily predict the nanny state response, but who knew at that time that the Party of the Criminally Insane was going to be put back in power?

thanks for the ping

[Peach]

Oh, no. Now we’re going to bail out the stupid, greedy people on the backs of the smart, fiscally conservative and responsible people.