...and get ready to buy low!

 

My solution:

Legalize Prostitution, tax the hell out of it, and finance our deficit.

howzabout dem apples??

 

Even after this very socialist bailout thats about to happen. things will still go to ****, its just gonna take longer cause the government will be buying the mortgages that are nearing default. The problem is these mortgages were issued at or near the peak of the housing bubble which means they are going to dramatically decrease in value and be thrust back on the market along with everyone elses home who wants to move but isnt worth what it used to be..... A whole lot of people will be stuck by being upside down on their mortgage. Housing prices are gonna fall fast......the government needs to issue a directive to cities across the nation to step up condemnation standards. Do away with lesser valued homes and rentals to help tighten up and boost values on existing homes.

 

Here is the problem why this bail out won't work. These banks/mortgage dealers are loosing their *** on all of these interest only loans that have went into default causing this 70+ billion bail out. Now the housing market is going to **** and house values will drop dramatically. An estimated 2.8 million houses will face forclosure so we pay that bill and then guess what happens. The people that are paying their mortgages start walking away from their loans. An example is why pay for a $400,000 house when it is only worth $280,000. The people will purchase a cheaper house (yet same size) and take the credit hit for a forclosure.Its worth taking a 10 year bad mark on your credit or file bankruptcy and still own a the new home.

 

yeah, it sounded good until the math was done correctly. 425 bucks is not gonna do me any good.

The bail out plan is only a bandaid. It doesnt attack the real problem. If all of these people still had jobs, they would be paying thier mortgages. It really doesnt matter that they have a house that is worth less than they owe. By the time your done paying for your house over the course of 30 years, you'll have paid far more than that anyway. If these people were still making decent money, they would still be spending it and paying thier bills. Its kinda hard to make a mortgage when you have no money, or half of what you use to make due to cuts.

I dont have the answer. but I dont think the bail out is it either. Gas needs to come down and jobs need to stay in America. there needs to be incentives for corporations to keep the jobs here and not be so eager to go across the boarder. What jobs werent affected by the free trade agreement, are being affected by the price of gas. its a very bad situation that will not be better for a long time.

 

My question is: What happens to the regular guy who is in default on his loan.....the fed buys his mortgage from the bank.......now what? he still wont pay his mortgage even if the feds reduce payment.....he still owes more than its worth..... Is the government just gonna let him live there for free???? they gonna forclose on him too???? if so, whats the difference if we had just NOT bailed anyone out, let a couple banks fold and let some healthy bank buy it up at a cut rate and forclose on the guy........I dont see an economic benifit to this bailout at all......All I see is prolonging the inevitable and heaving a heavy burdon on the tax payer instead of letting capitalism work as it should........heck look at Warren Buffet....Goldman Sachs just down far enough....he bought 5 billion dollars worth of it.....that capitalism at work!!!! I say let this thing play out on its own.............

 

JP Morgan is Mr. Potter!

To be honest...let them fail. My neighbor was noting how this was going to go down at least a year or more ago. How the hell could the financial analysts have not predict it? FAIL.

I think the bail out is a horrible idea. I'm all for buying the companies and breaking them down to small components. Maybe put in play a few regulations (but really is unnecessary). I don't feel sorry for those going into foreclosures when they
[ol][*]bought a house beyond there means.[*]Took out variable rated mortgages and balloon mortgages when the interest rates were at an all time low.[/ol]It is a consumer's responsibility to protect themselves and to educate themselves. If I pay too much for a car or any other product...that is MY problem and no one elses (unless in a relationship). Yes, the mortgage lenders bare responsibility for this, but it is THERE responsibility to protect themselves, too. There failure to do so is not my problem. We have to stop coddling these people. Businesses fail EVERYDAY! That is a fact of life.

 

After the great depression, they made a law that kept investment banking seperate from mortgage/ savings banking. It was illegal to bundle mortgages and sell them as a stock. Bill Clinton, under pressure from banking lobbyist's anddespite warnings from economic advisors,signed a bill that lifted that law. Banks no longercared so much about an applicants ability to repay the loan because they knew they weren't going to keep the mortgage, they would bundle it and sell it as stock to unsuspecting investors. Signing that bill, spurred a huge economic run and caused the housing bubble. Its on record that Bush warned Congress 17 times since he took office that this was comming and some controls needed to be in place. No politicion wants to take the heat for killing the boom, even though it was getting obvious the boom was a bubble!

 

I like apples.

 

Rod, I'm going to take your word for it at face value. I don't have the time and energy right now to verify this comment. I just wanted to add, the effect of policy's during one president's term is usually not felt until the next. Unfortunately, the general public will tend to lay blame on the wrong person.