Posted on 02/25/2009 9:32:57 AM PST by Oldeconomybuyer
They seem to think that by bailing out bad borrowers they will stabilize house prices. Unfortunately it will only prolong the crisis. Until prices on starter homes and condos become equivalent to current rents..the prices will fall. Plus the people we are helping out lack a lot of the character to maintain even the new loans.
We are in need of a 100 Million Rick Santelli’s at this point.
And the market is DOWN again......wonder why?
DOW7181.29 -169.65 -2.31%
NASDAQ1407.22 -34.61 -2.4%
Bernanke is a Bush guy. HArd to tell the doff between the Bushies and the Obammanoids.
Well, Ben, feel free to bail out any deadbeat you want to, but leave my wallet alone. He’s just another liberal academic who wants to help the Pooooor with someone else’s money.
I’m almost hoping my husband gets laid off....if they “bailout” credit cards and student loans....I’ll MAKE him ask to be laid off....
Outrageous and discouraging to me is that you never hear discussion about prosecuting the creators of this mess, Chris Dodd, Barney Frank, Bill Clinton, Rahm Emanuel, etc. The guilty ones must be held accountable.
That’s it. So much of this is fraud. People took out loans, spent the money on bling and now we get to pay for them?
That bus driver in the $800K house, did she deposit any large checks on that purchase? Will someone examine her bank account for mortgage fraud?
How do we know the seller did not kick back money under the table?
We’re doing it for the kids, OK!?!?
If he ignores the moral hazard his greater good will just get bigger and more expensive all the time.
"Moral hazards" have been taking a back seat for a long time with Congressman Frank, whose boyfriend ran a male prostitution service out of Frank's home.
Ben is trying to persuade us that propping up the value of the bus drivers fraudulently appraised and purchased $800K home- keeps up the “value” of our homes, too.
This is good economics?
d’oh. Guess I shoulda gone Ivy League so I would “get it”
How many Harvard brains did it take to ruin our economy?
That is the truth, many of these foreclosures will default for a second time.
That's about $30K per 150M U.S.taxpayers- and rising. Under the circumstances, they should immediately rescind the bailouts and cut a check for $50K to each taxpapayer on condition that it had to be spent within a year.
They're going to put us into debt anyway- at least the money should go to the people who are going to pay for it.
"In many of these situations we have to trade off the moral hazard issue against the greater good"
There is no greater good than avoiding more Moral Hazard. Contributing more Moral Hazard to a problem caused by Moral Hazard is like the "Hair of the Dog" treatment for a hangover.
Well said.
Illegals that got many of the bad loans are relying on family members struggling to make the monthly payment.
Will they be able to refinance/modify their loan if there is only one person on the deed and that person will not qualify since they only make like $20,00/year?
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