PIMCO's Bill Gross says Bush should bail out homeowners, markets.

Vinny1 · Aug 23, 2007

I think the government should just pay off everyone's mortgage. As for renters, they should all be handed $500k to purchase a home. I think the government should throw in furniture, a big screen TV, and a new car while they are at it. Give everyone free health insurance,including illegals, with no deductibles or co-pays. Free college education for everyone at the school of their choice.

I think we all deserve this.

BosyBillups · Aug 23, 2007

Quote from Vinny1:

I think the government should just pay off everyone's mortgage. As for renters, they should all be handed $500k to purchase a home. I think the government should throw in furniture, a big screen TV, and a new car while they are at it. Give everyone free health insurance,including illegals, with no deductibles or co-pays. Free college education for everyone at the school of their choice.

I think we all deserve this.

Exactly. And there is only two ways to fund this. Either raise taxes or print more money. Hey, since we can't cut any Government programs, let's just do both! Raise Taxes and Print Money. Yes! Then everything will be just okay for everyone!

sprstpd · Aug 23, 2007

Quote from BosyBillups:

He knows a bit more than you do, and you may have a different opinion, but you better respect him. Is it a proper thing to do? Probably not. But, does he make a case on precedent? Absolutely.

Is he an idiot for suggesting this bailout? Yes.

jficquette · Aug 23, 2007

Quote from Ivanovich:

I rarely post news articles, but this one had me thinking what a complete TOOL Gross is.

http://biz.yahoo.com/cnnm/070823/082307_gross_homeowners.html?.v=1

No kidding. If he gives money to these moron homeowners then I want some money for being smart enough to sell in 2004 and rent since.

Screw these idiots who thought they were going to get rich buying the house they couldn't afford.

John

sprstpd · Aug 23, 2007

Quote from Vinny1:

I think we all deserve this.

Maybe we should eliminate the concept of money entirely. That way everyone gets everything for free and we all live in harmony.

QQQBALL · Aug 23, 2007

Quote from BosyBillups:

His opinion is based partly on him being an American citizen, and also thinking that if real estate drops 10%, then we are headed for a recession

dude, go wrap yourself in the flag and go back to sleep. if Bill Gross is so simpathetic to homemoaners, he should donate $500M to them... instead, he is trying to get someone else's money given away. lets face it PimpHos (PIMCO) benefit greatly from the drop in interest rates. when Gross puts HIS money where is mouth is, then ill pay attention.

QQQBALL · Aug 23, 2007

Quote from QQQBALL:

dude, go wrap yourself in the flag and go back to sleep. if Bill Gross is so simpathetic to homemoaners, he should donate $500M to them... instead, he is trying to get someone else's money given away. lets face it PimpHos (PIMCO) benefit greatly from the drop in interest rates. when Gross puts HIS money where is mouth is, then ill pay attention.

and i forgot - many of these deals were liar loans... i have an idea, make the mortgage hack that wrote the squishy deals give their commissions back.

BosyBillups · Aug 23, 2007

Quote from QQQBALL:

and i forgot - many of these deals were liar loans... i have an idea, make the mortgage hack that wrote the squishy deals give their commissions back.

You can't make them loan brokers give back the commissions, they are, well, BROKE(ers).

But how does bailing out the subprimers mean that there would have be an interest rate drop? Gross was suggesting a federal "organization" to purchase these subprime mortgages, and then offer favorable terms to the borrower so their homes do not go into foreclosure and stink up the city. Addmittedly, he also says this would cost Billions.

Billions! That's a ton. But would you rather Billions go to a failing rebuilding effort in Iraq, or a somewhat tangible rebuilding effort of homeowners at home? Or Billions to the other pork belly spending measures that go on in Washington, which no-one notices, nor seems to care. At least this one will actually show some kind of return (i.e., possibly avoiding a recession)!

sprstpd · Aug 23, 2007

Quote from BosyBillups:

But would you rather Billions go to a failing rebuilding effort in Iraq, or a somewhat tangible rebuilding effort of homeowners at home? Or Billions to the other pork belly spending measures that go on in Washington, which no-one notices, nor seems to care. At least this one will actually show some kind of return (i.e., possibly avoiding a recession)!

Neither. Bailing out homeowners only enforces the notion that there is no risk in speculating in the USA. They deserve whatever pain is in their future because no one forced them to buy that house at a ridiculous price. Why should they be bailed out? They shouldn't. This is what happens to speculators sometimes - they go under.

BosyBillups · Aug 23, 2007

Quote from sprstpd:

Neither. Bailing out homeowners only enforces the notion that there is no risk in speculating in the USA. They deserve whatever pain is in their future because no one forced them to buy that house at a ridiculous price. Why should they be bailed out? They shouldn't. This is what happens to speculators sometimes - they go under.

Completely agree. And you know what? It's not the homeowner who will be punished, it's Wall Street who takes on unreasonable amount of risk because they know that if things get too bad, they will be bailed out. One of the main reasons why subprime exists is because "The Street" were actually buying these bundled loans. Without firms buying these, don't think the bank would lend 'em.