The stupid and irresponsible "home owners" bail out is happaning

I agree any kind of bail out for borrowers and lenders is absolutely absurd. The irresponsibility should rest on both their shoulders and both should suffer the consequences of making bad decisions. But instead it rest on the shoulders of the responsible people. While the bail out will help the irresponsible parties for a short time it will ultimately end in a bad way.

Why don't we let free markets be free markets? Let people reap what they sow. Those who are wise need to be rewarded; those who are unwise need to pay the consequences. While it may be painful for a time, at least the irresponsible parties will get washed out and their poor judgement will no longer be a factor in the market place.

As long as we bail them out we will have it hanging over our heads. Once the moratorium for teaser rates is up, what do we do? Another bail out? I guess it doesn't end until we can no longer afford to bail people out. When it is pointless to even print US dollars anymore.

Ok maybe it is a bit extreme, but seriously when does it end?
 
And for all of those idiots who have been saving dollars(ha!) to buy a home, future loan rates are clearly going to be higher given since the lender now needs to be compensated for the risk that the gov might step in and alter the loan. Thats great for everyone..........
 
Quote from LongView:

I agree any kind of bail out for borrowers and lenders is absolutely absurd. The irresponsibility should rest on both their shoulders and both should suffer the consequences of making bad decisions. But instead it rest on the shoulders of the responsible people. While the bail out will help the irresponsible parties for a short time it will ultimately end in a bad way.

Why don't we let free markets be free markets? Let people reap what they sow. Those who are wise need to be rewarded; those who are unwise need to pay the consequences. While it may be painful for a time, at least the irresponsible parties will get washed out and their poor judgement will no longer be a factor in the market place.

As long as we bail them out we will have it hanging over our heads. Once the moratorium for teaser rates is up, what do we do? Another bail out? I guess it doesn't end until we can no longer afford to bail people out. When it is pointless to even print US dollars anymore.

Ok maybe it is a bit extreme, but seriously when does it end?
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The homeowners, the lenders, the fed will wipe the sweat off their brows and learn from this. A new cycle begins, memory is short and it start all over again.
 
Quote from AMW:

And for all of those idiots who have been saving dollars(ha!) to buy a home, future loan rates are clearly going to be higher given since the lender now needs to be compensated for the risk that the gov might step in and alter the loan. Thats great for everyone..........
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Which means that the inventory will stay high/get higher for some time to come.
 
Quote from Sponger:

This whole mess is BULL#%$

As long as everyone MAKES money, no one gives a rats azz as to HOW its made, legal, illegal, doesn't matter, just "show me the monaaaaaaaaaayyyyyyyy"

But the SECOND the house of cards falls, EVERYone is screaming lawsuit, investigation, inquiries....

The fact of the matter is, the popping of ANY bubble must be allowed to occur, to let the MARKET go where it MUST go, and not interfere with the process. The real estate market and the financial markets NEED the cleansing that should be allowed to occur naturally.....and that means LOSSES MUST BE BOOKED AND TAKEN, PERIOD. Whatever happened to taking responsibility for your actions!?!?!?!

Wouldn't it be nice, if......every trade you made was guaranteed not to lose......that as long as you were showing a profit, the trade was officially booked.....but the second it became a losing trade, it automatically was erased from the system?

Hmmmmmm, where have I heard of that before........that's right, its the rules for how to pop a real estate bubble......reward all the greedy bastards from the very bottom to the very top in the the real estate market for anyone who was involved in the spider web, from:

1) the Fed driving interest rates ridiculously low, fueling cheap money bubbles in every market

2) to the individual real estate speculator, investor, flipper, living beyond their means people that bought the properties under the greater fool theory that prices only go up,

3) to the mortgage companies that underwrote the loans with a total disregard for underwriting standards and the ability to repay

4) to the investment banks that pooled those loans and sliced and diced the cashflows into fixed income securities and products

5) to the rating agencies that assigned them investment grade ratings

6) to the insurance wrapper companies that made the high ratings possible

7) to the hedge funds, money managers, mutual funds, banks, credit unions, insurance companies, pension funds etc that purchased the products created by the Street

And now they are ALL crying fowl, demanding restitution.....but all was fine as long as they were MAKING money.

The game IS rigged.....because the government refuses to let the markets go where they MUST go.
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Damn right. Burns me up.
 
Buying good values at depressed prices in high GDP countries achieves superior returns over time with relatively low risks.
 
I don't believe too many people will qualify for this so called 'bailout' they are proposing. And also, the banks would have negotiated with these people anyway. Even if you are not in danger of foreclosing, you can call your lender and tell them you are hurting. Most are currently open to renegotiating.

The administration is just doing this so it looks like they care and are doing something about the mess (which they helped cause). Kind of like why politicians do anything they do. Will have almost no effect on the actual housing market.
 
Quote from LongView:

I agree any kind of bail out for borrowers and lenders is absolutely absurd. The irresponsibility should rest on both their shoulders and both should suffer the consequences of making bad decisions.
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The initial bad decisions were made by Greenspan and the Fed. The brilliant (!) Greenspan did not look ahead to fully consider the impact of his decisions.

They created an environment where mortgage brokers came out of the cracks in the pavement to push low/no interest ARMS to homebuyers. In most cases this was entirely legal, and they were simply taking advantage of a marketplace that was created by the Fed.

It is now entirely appropriate that the government should now take some role in helping "responsible" homeowners to retain their ownership.
 
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