Quote from jamjob_ramjet:
people buy homes they cant afford, with financially suicidal mortgages, live it up cashing out and spending their rising equity, then cry for a bailout when they realize that risk/reward doesnt always mean, take a risk, get a reward?
does that mean I get losing trades refunded?
heads they win, tails prudent taxpayer loses
Quote from ratboy88:
they were always glorified renters... still are. they aren't the ones being bailed out.. its the banks. the banks should know better.... the signs were everywhere. they will paint this as a home owner bailout... but ultimately the banks are rewarded for being irresponsible. this happens all the time on the world scene... ie.... the IMF makes loans to countries they know cant pay it back.. good way to steal resources. all one big scam.
Quote from Alex_in_Oz:
We in Australia don't 'bail-out' people who can't/won't pay their mortgage. We run an economy based on the principles laid out by Adam Smith among others ('the invisible hand of the market').
I think your problem is you guys are too close geographically to Cuba and Venezuala. Their communist style systems may be starting to influence your policy makers.
Why don't you all let 'the market' work it out?
Someone who can't/won't pay their mortgage SHOULD NOT be bailed out by the taxpayer.
Lobby your lawmakers, tell them this is wrong!
Quote from nutmeg:
I hope our govt bails out each and every single one who needs it. WTF do I care? It is no skin off my back (you might say, somewhere down th line it'll cost me) it won't effect me one iota in the grand scheme of things.
If I can see my neighbor remain in his home thanks to the govt, great, at least I can see some tangible results from the taxes I pay.
These are our fellow citizens for better or worse, wtf do we have a govt for if not to help joe dumbass sixpack who tried.. We send aid to foreign countries, we are going to build a bridge to nowhere in Alaska, we spend money for studies on why inmates escape from prison, why flies fly, etc etc.
People make mistakes, big friggin deal, maybe they'll learn something, if they don't, they don't.
Quote from nutmeg:
I hope our govt bails out each and every single one who needs it. WTF do I care? It is no skin off my back (you might say, somewhere down th line it'll cost me) it won't effect me one iota in the grand scheme of things.
If I can see my neighbor remain in his home thanks to the govt, great, at least I can see some tangible results from the taxes I pay.
These are our fellow citizens for better or worse, wtf do we have a govt for if not to help joe dumbass sixpack who tried.. We send aid to foreign countries, we are going to build a bridge to nowhere in Alaska, we spend money for studies on why inmates escape from prison, why flies fly, etc etc.
People make mistakes, big friggin deal, maybe they'll learn something, if they don't, they don't.
Quote from jamjob_ramjet:
every action has a consequence
by rewarding those who were foolish, you subsidize a still artificially high house price, forcing those who stood on the sidelines of this madness waiting for reality to inevitably return to pay a higher price, or wait longer to get into a home
and adding insult to injury, you force them to pay for that subsidy with their taxes
health can never return after a bubble, until the bottom is allowed to arrive - forclosures are part of the process of concluding a real estate bear market
supressing contraints like lending standards creates bubbles - bailouts only extend the resulting bear market, and set the stage for other bubbles, as people in the back of their minds know that someone else will take the hit for the risks they couldnt afford to take
"People make mistakes, big friggin deal, maybe they'll learn something, if they don't, they don't."
what they learn, is that recklessness pays and prudence is punished - that's why they call it the 'moral hazard'