Posted on 12/02/2007 6:37:11 PM PST by Rockitz
You’ll suffer too. And your neighbors, friends, parents, brothers, children...things don’t happen in a vaccuum.
Let me ask - how is it a “bail out” if all the Treasury department did is negotiate a few things? There is no evidence they gave the lenders any cash.
Two words, bad idea.
Don’t tell them that. It ruins the doom-gasm.
EXACTLY! DO IT NOW! AND STOP MAKING YOUR MORTGAGE PAYMENTS! NOW!
How are they going to decide gets to keep their "teaser" rate -- probably by whether they've been making their payments on time or not, right?
Be irresponsible and get the bailout, be prudent and get disgusted.
It keeps the bank from having to assume ownership of a lot of foreclosures and sell them at a loss. That’s the bailout.
Well not exactly. Hedge funds and investment banks were falling all over themselves in their hurry to shovel money at mortgage brokers, who were in the business of giving loans to deadbeats and charging them gargantuan fees. The mortgage brokers would take the steaming piles of option ARM loans and sell them to the hedgies and IBs, who would repackage them neatly into much larger steaming piles, put a big ribbon on top and sell them to fools with a trillion dollars of your and my retirement money. It was fun while it lasted.
Actually, from what I heard, if they paid on time before the adjustment and it was apparently only the increased rate that hurt them, they qualify.
If they were late even before it adjusted, no dice.
The Circle of Greed is complete and taxpayers and other responsible citizens take it in the @$$ again.
I’m not sure what everybody’s wailing and gnashing their teeth about, here. This is just another form of forebearance, only writ large. Slowing the pace of foreclosure will allow the market to absorb more excess housing on the market, thereby supporting resale prices, and helping to prevent a colossal loss of personal wealth in this country. It also will calm a major case of jitters in financial circles, and will go a long way to help “unfreeze” the credit market.
So, this is far superior to any of the ill-concieved political “solution” rumblings coming out of Congress, imho. Even if there were to be some sort of behind-the-scenes injection of funding, it can’t possibly be any more costly than what has already occurred, as far as attempts to shore up the financial system.
A lot of companies have already gone out of business, several thousand have lost their jobs, and several thousand have lost their homes. America has a lot more important enemies than people who got variable rate loans.
Well it didn’t cost the taxpayers anything...shouldn’t you be thankful for that?
I think it’s a reasonable solution. Let’s face it, we both know that something would have been done...whether we liked it or not.
Better this than a Hillary-type thing where you, me, and other taxpayers would have paid off other people’s mortgages.
Correction:
Option ARMS didn’t go to deadbeats.
You have to have decent credit to get them, always have.
Don’t try to inject common-sense into this debate...the doom-and-gloomers and the vultures will jump all over you.
See my post #20.
Doom-gasm: n. The climax resulting from observing the misfortunes and bad things happening to beings other than oneself, common during times of economic and social turmoil, consisting of a series of involuntary muscle contractions in the lower pelvic muscles accompanied by a sudden release of endorphins providing a feeling of euphoria.
You like?
“Doomgasm” is very good, though that makes so many of these doomtastic threads a little too “spoogy” for my tolerance.
BTW, that "behind-the-scenes injection of funding" further devalues those hard earned dollars of those seeking to invest in hard assets such as housing. Once again the irresponsible are rewarded at the expense of the responsible.
You actually think responsible savers and investors won’t be hurt, if this is allowed to snowball?
Which is why I am surprised so many people have their panties in a bind over this. This is a market solution where both parites benefit.
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