Goverment Bailout of Automakers - Goverment laughs at homeowners (6%, mortgage rates, mortgages)

[Siberia]

The little 3 automakers have begged for a taxpayer bailout, especially GMs Wagner who has make hundreds of millions in bonuses driving GM to bankrupcy.

And now the government is responding....$25 BILLION in loans at 1/3 the going interest rate....see article below:

Automakers seek Fed loans to ride downturn: report: Financial News - Yahoo! Finance (broken link)

And what do the democrats and republicans have to say to homeowners as they watch interest rates go from 6.5% to 10% as inflation is going out of control over the next 3 years....GO BITE YOURSELF STUPID SHEEPY TAXPAYERS!

And keep raving about OBAMA as "not just another politician"...he actually presented the $25 billion bailout plan to a cheering detroit audience a few weeks ago. He is just another paid off power and money lusting wannabeee...just like the rest...


What can you do...for starters, if GM, Ford, and Chrysler get a bailout....vow never to buy another POS auto from them again. Which isn't a hard choice, being that imports are cheaper, more reliable, and get better gas mileage.

And for politicians, demand low interest mortgages for all homeowners, as how can they bail out corporate AMERICA but not CONSUMER AMERICA...as we, the taxypaying consumer, are 66% of GDP in the american economy. Majority wins, time to stop bailing out corporate america, time to start helping homeowners instead!

[CouponJack]

Are you surprised?? the government always does this...

[Silverfall]

I'm not sure it's the government's job to bail out people who buy and bail on homes, or who don't know how to budget and spend themselves silly. There are so many dynamics occurring in our economy right now. The economy is a little more complex than this.

I'd like to see the article you read indicating that mortgage rates will hit 10% in the next 3 years. I haven't read anything like that yet.

[CouponJack]

Originally Posted by Silverfall

I'm not sure it's the government's job to bail out people who buy and bail on homes, or who don't know how to budget and spend themselves silly. There are so many dynamics occurring in our economy right now. The economy is a little more complex than this.

I'd like to see the article you read indicating that mortgage rates will hit 10% in the next 3 years. I haven't read anything like that yet.

Its not the governments job, but they stupidly do it anyway....


In regards to interest rates, I think his point was that in 3 years we're most likely gonna be closer to 10% than to 6% we currenlty are around...which i tend to agree....

[Silverfall]

I agree that rates will most likely go up. I'm just cautious about throwing actual numbers out there without any data.

[Philosophizer]

Originally Posted by Silverfall

I'm not sure it's the government's job to bail out people who buy and bail on homes, or who don't know how to budget and spend themselves silly. There are so many dynamics occurring in our economy right now. The economy is a little more complex than this.

I'd like to see the article you read indicating that mortgage rates will hit 10% in the next 3 years. I haven't read anything like that yet.

What's the real rate of inflation? What is the time value of capital? What lender is going to lend money at a loss of the real purchasing power of the money paid back?

[Siberia]

Originally Posted by Silverfall

I'm not sure it's the government's job to bail out people who buy and bail on homes, or who don't know how to budget and spend themselves silly. There are so many dynamics occurring in our economy right now. The economy is a little more complex than this.

I'd like to see the article you read indicating that mortgage rates will hit 10% in the next 3 years. I haven't read anything like that yet.

Mid 1980s, inflation went out of control, and stagflation resulted. CD rates went to 12-14 percent, and loan rates went as high as 18%. I'm being optimistic about 10% mortage rates.

The government has virtually no control over global inflation, other than raise the prime rate. The spread between prime rate and mortgage rates isn't something the government controls either...currently at almost 3%.

Check out a history of inflation, interest rates, etc...I lived through the 80s, it wasn't pretty for those who owed money, but was wonderful for those with cash (CD rates, etc).

[Siberia]

Originally Posted by TexianPatriot

What's the real rate of inflation? What is the time value of capital? What lender is going to lend money at a loss of the real purchasing power of the money paid back?

The government has changed the way they calculate core and wholesale inflation many times in the past 20 years, each time to minimize the real numbers. Even with the manipulated calculations, the July inflation rate was 1.2 percent for the month. Multiply this by 12 months...you get the point, inflation is going crazy, and there is nothing the government can do as they are trying to bail out the banks and wall street by keeping interest prime rates super low until at least the year end (after elections...). They will have waited too long, as once inflation gets out of control, it could easily take 10 years to get under control...the same amount of time it has taken Japan, the US, and other countries in the past under similiar circumstances.

Hope I am wrong...I really do...

[Philosophizer]

Originally Posted by Siberia

The government has changed the way they calculate core and wholesale inflation many times in the past 20 years, each time to minimize the real numbers. Even with the manipulated calculations, the July inflation rate was 1.2 percent for the month. Multiply this by 12 months...you get the point, inflation is going crazy, and there is nothing the government can do as they are trying to bail out the banks and wall street by keeping interest prime rates super low until at least the year end (after elections...). They will have waited too long, as once inflation gets out of control, it could easily take 10 years to get under control...the same amount of time it has taken Japan, the US, and other countries in the past under similiar circumstances.

Hope I am wrong...I really do...

But you aren't and should invest accordingly.

[HappyTexan]

Where is the "moral hazard" ?

Next will be the airlines.