Posted on 12/10/2007 10:46:06 AM PST by goldstategop
The fundamental problem is that people took out loans they could never afford. The answer, painful as it may be, is for these people to either find affordable loans or find housing they can afford – not to shift part of the bill for their rotten judgment to taxpayers and to holders of legal contracts.
We acknowledge the argument that a wave of foreclosures could roil Wall Street and spur a recession. But there is no reason to assume such a downturn would be long-lived. The fundamentals of the U.S. economy remain strong, and more than 19 out of every 20 mortgages are in good shape. Indeed, a counterargument holds that the sooner the subprime crisis crests, the better.
If this sounds hard-hearted, so be it. Yes, better government regulation would have lessened this crisis. But at some point, the individuals and institutions who actually created this mess must pay for their irrational and risky decisions – not the public at large.
"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
What taxpayer bail out?
Yes. After all, they didn’t have a home when they tried to buy the current one. Perhaps they just aren’t meant for home ownership. They damned sure aren’t meant for home ownership if they expect me to pay for it.
You think transferring them to FHA insured loans isn't bailing them out? It's not as bad as, say, Hillary would like because we won't make overt payments for them. But it is certainly going to cost taxpayers money.
The lenders assumed the risk when they made the loans. They should pay the price.
The ones who are creditworthy should be able to refinance - as to the others, the reason they have such crappy rates is that they’re risky borrowers. No cause for bailout, IMO.
The one that will occur in 5 years when this proposed freeze on rate changes ends.
If you think about it, you can see the beginnings of it. The Democrat party has already said that the current giveaway is not good enough. They clearly see the need to top what Bush has proposed. The easiest way, of course, is for the US government to bail out each and every foreclosure. Given how the Democrat party has successfully monopolized the votes of the recipients of taxpayers' largess, there is no reason to believe that it would not want to add to this constituency by offering free houses to these "victims."
Seriously, is there a link?
The REAL problem is that mortgage lenders who created this mess with their low standards and deceitful practices has pulled us down this road of “good intentions”.
If we are to avoid creeping socialism - errant capitalists have to be punished, and they must never do that again, lest we be set up for more taxpayer money being stolen for “the greater good.”
Who is going to get transferred to FHA insured loans? What will be the qualifications? What percentage of the loan market are you talking about?
What giveaway?
Hey! I watch Flip That House and I’m not buying real estate I can’t afford.
Oh. Wait. I thought this was really about the folks who bought ‘interest only’ loans...?
Regardless, THIS plan doesn’t work for investor properties.
Why is that RR? I thought FHA allowed investor loans...?
“... the individuals and institutions who actually created this mess must pay for their irrational and risky decisions – not the public at large.”
Hear, hear!!
“... the individuals and institutions who actually created this mess must pay for their irrational and risky decisions – not the public at large.”
Hear, hear!!
Nope. FHA is only owner-occupied properties or a non-occupant co-borrower where two people are on the loan but at least one lives in the house.
And this isn’t FHA. All it is is allowing the fixed-period of an ARM to be extended.
Ah, thanks.
I don’t get it. I thought the cap was 1% a year. Who is that gonna break?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.