The stupid and irresponsible "home owners" bail out is happaning
- Thread starter RedDuke
- Start date
This is the guy who understands how it really works now. 10 years ago he would be out on the street and sued for the negative equity, now he gets to stay in the house. Some of us are stuck with stuff from 20 year old text books talking about taking away the punch bowl just as the party gets started by Fed raising rates to control inflation, rein in bubbles etc. Now the Fed comes in with free Beer at Midnight. Similar measure were brought in by the Govt in the UK recession of the early nineties. people kept their huses but not their jobs in what was a rotracted grinding recession. Same in Thailand, everyone kept their condo and 500SL but nobody made any money for 10 years.
LOL - at least I got a laugh out of thios whole debacle.
Like some of you, i too was puzzled by how the government could force these contracts to be altered, but now i understand it's apparently a voluntary and cooperative agreement on the part of some of the major holders of the subprime paper. And that raises the question whether this solution can be forced on those holders who don't agree to suspend rate increases? (Of course we know the government has its ways of getting want it wants.)
I wonder what fraction of the total subprime out there is going to be affected by this. Finally, i wonder if those holding devalued subprime paper, that now yields less than was anticipated, will be compensated via tax breaks. If so, we taxpayers will end up subsidizing those who made these bad investments.
I wonder what fraction of the total subprime out there is going to be affected by this. Finally, i wonder if those holding devalued subprime paper, that now yields less than was anticipated, will be compensated via tax breaks. If so, we taxpayers will end up subsidizing those who made these bad investments.
I am so pissed about this. Are we living in America? Seems more like Russia or China.
What about the refunds due to those who paid twice what they should have for a house in some areas of the country due to the speculation in the market?? What about those people? Can they get relief?? Fuck no. Lets just help the liars and cheats out.
John
What about the refunds due to those who paid twice what they should have for a house in some areas of the country due to the speculation in the market?? What about those people? Can they get relief?? Fuck no. Lets just help the liars and cheats out.
John
Smartest post in the thread. Everyone else is being led around by nose. The financial issues are true, but this is about power.
At the core, this is just than the masses being further acclimated to Big Brother running their lives. Far from a government mistake, seems like pretty good execution to me.
In today's day and age, people don't have to be forced to be enslaved, they will beg the government to do it.
P.S. It's a bit sad that Mvic was the first response to the thread starter and not ONE other poster noted the truth of his statement.
untrue, only about 0.6% of all homeowners are facing foreclosure. and many of those won't qualify for the bailout.
the govnt is siding with big business and dead-beat subprime borrowers with the worst credit scores.