When will the US financial baillout occur?

[Old Hippie]

"...I don't like to see anyone bailed out but if I had a choice I'd much rather the people stuck with the balloon payments. Why can't we provide them the money instead of the banks and mortgage companies? Who ever has a mortgage that rose a certain percentage over the last year, has their mortgage amount stay the same and the difference paid with the bailout money. They have to stay in the home for the next 12 or 18 months which gives us time to sort it all out and doesn't let anyone who got into the mess try to flip the home or whatever..."

 

 

 

I am not at all for bailing out people on the mortgages. Let them lose their homes. They knew (in most cases) there was a risk, and many were just motivated by greed.

 

I say let the market go and dictate. Figure if these homes go on the market for a fraction of what was paid, and others who really can afford them can buy them, why not? Just the market correcting itself with "economic Darwinism."

 

But I still say no to foreigners buying homes/real estate here.

[shygye]

Well, the House Repub. want to give huge tax cuts to Wall St.

[Old Hippie]

This could actually end up being a good time for Americans. Figure, we *might* actually see some real changes in business, government and Taxes here.

[Bangkoktraveler]

I don't like to see anyone bailed out but if I had a choice I'd much rather the people stuck with the balloon payments. Why can't we provide them the money instead of the banks and mortgage companies? Who ever has a mortgage that rose a certain percentage over the last year, has their mortgage amount stay the same and the difference paid with the bailout money. They have to stay in the home for the next 12 or 18 months which gives us time to sort it all out and doesn't let anyone who got into the mess try to flip the home or whatever.

 

 

 

Some of this problem was caused by people buying a house and being told they can refinance in a few years at lower rates, etc. When they went to refinance, they found out their house was worth less then what they paid for it. I know of one person who bought a $500,000 home only to find out it is now worth $300,000. What does the person do? Walk away from the house.

 

But if the government gave that person and other people in the same situation a loan for the full amount, in this case $500,000 but at a reasonable interest rate, lets say 5 3/4%, most if not all of the people would keep their homes. If this was done, it would be a win win situation for everybody, but this is just too simple.

 

What they cllaim is that the home owner should walk away from the house and file babkruptcy. The home owner fucks the bank and in turn then the bank fucks the stuck holders because they are holding worthless paper.

[Old Hippie]

But why should the government give a bailout/handout to irresponsible people? They took a risk. If I lose $25K in the stock market, I get a write off, but I don't get the full $25K back from the government. If I miss car payments, I can't keep the car, I can't get the cash from the government.

 

The fucked up practices that went on, and the land rush to "get rich quick in no money down real estate" hurt a lot of responsible people. People who realized they couldn't

afford a home, so they rented and saved...now the irresponsible get to keep their homes, and the responsible still have nothing. NO! Let the market fall, so the responsible people can buy homes.

[Bangkoktraveler]

But why should the government give a bailout/handout to irresponsible people? They took a risk. If I lose $25K in the stock market, I get a write off, but I don't get the full $25K back from the government. If I miss car payments, I can't keep the car, I can't get the cash from the government.

 

The fucked up practices that went on, and the land rush to "get rich quick in no money down real estate" hurt a lot of responsible people. People who realized they couldn't

afford a home, so they rented and saved...now the irresponsible get to keep their homes, and the responsible still have nothing. NO! Let the market fall, so the responsible people can buy homes.

 

 

I agree, let it fall. Lets go down to the bankrutcy court, collect all the forms, and then fill out the forms, etc. for a fee just like they do at Poiet when we do a Visa run. What do you say, we charge $200.00 a pop?

[chelseafan]

But why should the government give a bailout/handout to irresponsible people? They took a risk. If I lose $25K in the stock market, I get a write off, but I don't get the full $25K back from the government. If I miss car payments, I can't keep the car, I can't get the cash from the government.

 

The fucked up practices that went on, and the land rush to "get rich quick in no money down real estate" hurt a lot of responsible people. People who realized they couldn't

afford a home, so they rented and saved...now the irresponsible get to keep their homes, and the responsible still have nothing. NO! Let the market fall, so the responsible people can buy homes.

 

I don not agree with you, principally because its the banks that were at fault for offering these people deals in the first place. Is it the fault of the home-owner, marginally I suppose but its the banks that must take the biggest share of the blame in offering such attractive inducements and failing to check whether the homeowner could afford such deals.

 

They took a risk, they offered loans to people they knew couldnt pay in times like this.

Now it has bitten them on the backside, I say let the banks go under, the savvy banks will survive, the poor ones will go under. The board of directors shold also be forced to hand over any personal assets to help pay for this mess, after all they were earning millions when things were going well, its right that they should take the brunt when it go's tits-up.

 

 

Of course the downside to this is the amount of jobs lost and going forward financial confidence.

 

Lets hope that when this all blows over, and it will, that there are tighter controls put in place.

 

[Old Hippie]

I will disagree with your disagreeing. Every asshole and their brother wanted to be a real estate speculator, they bought shit they couldn't afford, on the pretext of being able to "flip it" in 3-5 years for 2-3 times what they paid for it...this was going on all over the place. The "demand" for housing was based on a bunch of idiots thinking they knew what they were doing. Greedy bankers/loan officers capitalized on this.

 

Now, the bottom fell out, all the demand for housing has dried up, and the market is in a correction...of course, now late night t.v. is playing to the same idiots with a program to "...get rich quick in the foreclosure market..." No, these greedy fucks never learn, and they deserve to lose their homes. Same as I or anyone else making a bad investment based on bad information which WE failed to research. Hell, Greenspan and many others were saying this was all going to end badly for years, yet people were still jumping in...

[Bangkoktraveler]

I say fuck the greedy bastards but there are some homeowners who bought thinking they could refinance. Those I feel sorry for.

[chelseafan]

I will disagree with your disagreeing. Every asshole and their brother wanted to be a real estate speculator, they bought shit they couldn't afford, on the pretext of being able to "flip it" in 3-5 years for 2-3 times what they paid for it...this was going on all over the place. The "demand" for housing was based on a bunch of idiots thinking they knew what they were doing. Greedy bankers/loan officers capitalized on this.

 

Now, the bottom fell out, all the demand for housing has dried up, and the market is in a correction...of course, now late night t.v. is playing to the same idiots with a program to "...get rich quick in the foreclosure market..." No, these greedy fucks never learn, and they deserve to lose their homes. Same as I or anyone else making a bad investment based on bad information which WE failed to research. Hell, Greenspan and many others were saying this was all going to end badly for years, yet people were still jumping in...

 

Well I will have to disagree with your disagreeing about me disagreeing with you.

 

A guy who is on low income (I'll work in pounds here) lets says £20,000 wants to buy a house, he has been renting and wants some sort of security for his family. He sees a starter-flat for £100,000, has the minimum 5% deposit but realistically it will be a stretch for him.

Typically the most he can borrow is 3x his salary, i.e. £60k spread over 25 years. Bank after bank are turning him down - rightly so.

But THEN the banks start dishing out mortgages at 5x his salary (as has been happening). He works out that it will be tough but can just about afford it.

 

Now my question is who is in the wrong here?, him for wanting what any other person wants, security or the bank for knowingly lending him too much money. Personally I wouldn't blame this guy, a lot of people have bought houses on a tight budget, its not about greed its about wanting a safe and secure future for your family.

 

No, I do blame the banks for giving him the loan in the first place, this example is plainly down to irresponsible lendning. The buck (pound?) has to stop with the banks....They ARE the supposed experts when dealing with your cash after all.

 

I will concede that I don't have any pity for property investors though. They played the game and got burnt.