Banks urged to give underwater homeowners money...

Privatize profits socialize losses.

-Increased spreads for lenders not being passed on to buyers
-Inflate the currency to preserve bank-owned assets

This is reality.

Deal with it and try your best to profit from it.
 
Quote from empee:

be honest gnome, if a Democrat had suggested this (before what happened happened), wouldn't you be screaming about them be liberals and excessive regulators screwing everything up?
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Hell NO... up until half a generation ago, that's how business was done. A bank made a loan with the intention of making a profit on the repayment (and underwrote the loan risk accordingly).. and usually held the mortgage for many years, if not for the full term.
 
Quote from marketsurfer:

tons of homeowners made a killing during this time and banked/invested the money. most seem to forget this fact.

surf
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And now they can't afford to make their payments on the loans they took out to "bank" their money so they want help from the Gummint, meanwhile they get to keep all the money they took out and invested or whatever "assets" they bought with "their" equity.
 
Geeeez. If I had known that they would just write off half of the principal I owed in a few years, *I* would have gone out during the bubble and got a huge loan I couldn't afford, too!

If they do this, they should also send a "For Not Being An Idiot" reward check out to me and all the other people who DIDN'T take on large debts we couldn't possibly pay back, just because "I really, really wanted that nice big house that cost more than I make in 20 years, and this friendly mortgage broker told me that with an ARM, I could have it."

This just rewards 1) financial ignorance and stupidity on the part of the borrowers, and 2) financial rapaciousness and unbridled greed on the part of the lenders who issued them predatory loans and then securitized their liability away, and 3) financial ignorance, stupidity, AND greed on the part of the people who traded those securities.
 
Quote from jaronimo:

Maybe he is saying "you guys screwed the pooch by giving these people loans in the first place, so now try to help them out before they foreclose"

I went in for a mortgage a few years ago and I had a number in my head of what i wanted to spend. I wanted to get pre-approved to make the buying process quicker. They approved me for a loan where the mortgage alone was 4 times what I had in mind. I told him "you got to be kidding", he said No, I have great credit and would be able to swing it. I believe i would not have been able to survive if i had accepted the highest loan they qualified me for. The taxes, insurance, etc on top of the loan would leave me less than 1 weeks money to buy everything else in my life like food, clothes, vehicles, etc...

They were looking for the quick score and then they flip my mortgage to someone else and its off their books.

While I believe the people that accepted these mortgages should be held responsible for their choices. i also believe that the banks and morgage brokers were in a position to know better and they need to be accountable too.

i guarantee you if they were charged back for making a loan that failed over the course of the lifetime of that loan, they would never have written ANY shady or subprime loans.

But thats just my opinion and I could be wrong.
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They get charged back when they foreclose on you . Fuck the banks. I hope Citi and BofA go bankrupt.


John
 
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