Posted on 12/06/2007 9:36:35 AM PST by goldstategop
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
It is not a bail out. It is an agreement that is in the best interest of all parties involved. Banks are the biggest loser in a foreclosure. In the end this is best for the economy and best for existing homeowners.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
LOL...Congratulations on your effortless transition from:
There is no Housing Bubble !!
There is no Housing Bubble !!
There is no Housing Bubble !!
TO
This is not a Bailout!
This is not a Bailout!
I never said housing would not decline. I fully expected about a 5% decline and a slow down. What I objected to was the constant sky is falling, houses are gonna decline 40% in the next 6 months BS. And yes, this is in no way shape or form a bailout.
Much of Calif housing is hyperinflated.
Our $145k house now a $600k house.
Small wonder housing is making our area unaffordable for young couples with kids, jamming them into small apartments in unsafe parts of town.
Best thing that could happen for everyone but the speculators and those who use their houses as cash machines, is to see Calif housing prices fall at least 50% to bring them closer to a rational price.
rh, calif
I agree with you. If I were one of these investors, I would rather see a rate of return at 7-8% with maybe a 10% forclosure rate than keeping a 11-12% return with a 50-60% forclosure rate. I am not in favor of government bailouts, but I don’t have any major issues with this solution. It is not like these homeowner’s are going to have a 1% rate freezed for 5 years. They were already paying more than a conventional loan. When I bought my house in 2003, I took out a 30yr fixed and refinanced in 2005 with another 30yr fixed at 5.25%. The mortgage broker BEGGED me to take out equity and get an ARM, but I stuck to my principles and now I am sitting pretty. There is already almost a dozen homes in my neigborhood up for sale or already owned by the banks. If this move keeps another dozen from being forclosed and keeping my house value somewhat stable, I am all for it.
The lending institutions and the scum that signed the loans should eat it 100%.
They are legal contracts, live up to them or lose!
It is most definitely a bailout, it is just that the banks are bailing people out, not the government.
The banks are modifying the terms of their mortgages in order to keep them affordable enough to keep the homeowners out of bankruptcy. The homeowners are getting off with paying less then they had agreed to pay.
That's a bailout.
If two parties to the contract agree to change the terms, why do you care?
???? No it isn't. If the banks accept less in return for the improve prospects that they won't have to foreclose. That is called renegotiating a contract. It is not a bailout. There is no government money involved. Two parties to a contract can change the terms. There is no moral or ethical rule against that. It happens everyday.
Actually, providing more hope for investors to get their money back. If these funds go bankrupt, the investors will be big losers.
“It isn’t a bailout.”
I suppose that depends on what your definition of “isn’t” is. Welcome to wonderland.
The problem isn’t necessarilly that the housing was too expensive, people took out loans with very low Down payments and very high payments monthly. They also used ARMs and other riskier prospects without understanding what they were. The other day while I was at Sears buying a battery the 12 year old child of a Hispanic woman was having too explain in english how the pro-rate on the warranty worked, the woman kept getting madder at the store employee because she wanted a new battery. The funny thing was it was an Interstate battery, not a Sears battery.
This is the same as the housing problem in that, now because everyone wants to not address the single language barrier. People that can’t even understand how a warranty works, now want to understanad why their house price is unstable. Sometimes you have to get off the high horse of knowledge and realize that the lack of a cohesive education based on real life is needed, instead of the warm fuzzy education, that passes people along today.
Understanding how much a house, or warranty, or car is worth takes understanding.
They sold the loans and don’t own them.
I hope the current owners of the loans take the banks to the cleaners and the people that signed the loans wind up on the street.
The government’s interest in this is to keep property taxes from resetting at a lower level.
It is pretty obvious isnt it?
The banks and financial institution that agreed to this, do own the loans or run the funds that do own the loans. Now if they did something that is not in the best interest of the investors who invested in those funds, those investors might have the issue. But I can't see how getting the most money back possible is not in their best interest.
Bush doesn't care about that. The reason Bush is doing this is so the economy does not tank on his watch.
Raise rates and asset prices go down.
Lower rates and asset prices go up.
Although our centrally managed economy is not micro-managed as with the old Soviet Union because rates are a blunt instrument.
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