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Except - where will the money come from to pay for the bailouts?
It doesn't have to be money. You set legislation to force banks to refi everyone in those funny loans to a fixed-rate one.
Quote:
Originally Posted by malamute
A bailout is nothing than a temporary bandaid that just prolongs the time before the adjustment begins.
Not true. And, according to data - and our gov't - GM is an example of a bailout that has been recouped, jobs saved, and taxpayer dollars reimbursed.
Quote:
Originally Posted by malamute
Foreclosure isn't the worst thing to happen to someone, it allows them to get out from under a home that's going to suck up every dime they get. Sure it hurts but people adjust, the sooner they begin to adjust the better.
No. But, the foreclosures are having a huge domino effect. It's affecting people who weren't involved. Example, you had a ridiculous housing boom 2001-2006 where millions of people overpaid for houses. Now, 2006-2010 you have massive foreclosures. Although most people can afford their house, there are ALOT of people walking away because of the cost-effectiveness. As one person does it, so does another, etc. until entire neighborhoods are being wiped out. Some are even getting crafty and having family members buy them houses, they walk away from their house and move into the family member-brought house and do a rent to own from your mom/sister/cousin. People are going to get over, regardless. You might as well be systematic about it and do it in an orderly, controlled fashion.
Quote:
Originally Posted by malamute
In the end, it's better to let things work themselves out. Government isn't the solution, it's the problem.
A balance is the solution. No government regulation in regards to Wall Street, lending practices, and oil drilling procedures, risks and oversight has caused a lot of economic and ecological issues.
Everyone took the risk of buying a house when they should have better questioned the ridiculously fast rise in prices and how they were a sign that things were amiss. When I owned a home five years ago, I was scared that this whole thing would come crashing down, so I sold. I've come close to buying a house several times since then, but each time I'm glad I withdrew. Now with unemployment, I couldn't buy a house for anything other than cash.
Which leads me to think that we need to excise this whole mortgage thing from our economy. One hundred years ago, the majority of people were renters. With banks eager to find new ways to profit, they pushed the idea of home ownership on everyone, but what is home ownership when you have a mortgage? You NEVER really own it until it's paid off. What a lie!
Let the banks who committed these greedy crimes fail. Let the people who bought houses that ate up 60% of their monthly income lose them. Let's change the idea of home ownership into the idea of owning a pair of shoes or a chair or telephone: you buy it when you have the cash. Since the banks will fail, the economy will tank and prices will go down to pennies on the dollar (my economic acumen is clearly open for correction by those who know more) and we can go back to being majority renters in houses we used to "own". This will inspire people to save again, like we used to, only this time, it will be in new banks that are eager to offer real interest, not 0.05% on balances over $10,000. Ha!
We allowed our economy to create monsters. And our legislators, drunk on the bribes and perks given them by the greedy bankers, allowed for the repeal of Glass-Steagal, a huge mistake. We also need to disallow banks from loaning out money at a 9 to 1 ratio. It does not make sense to allow a bank with $100 in the vault to loan out $1000 when 90% of that money doesn't exist at all. In this new economic reality, it should be rather difficult to get a loan and that loan's rate should not exceed 2%. Blatant usury is illegal in other parts of the globe and is a sin in many religions. It's about time we followed suit.
I know you're thanking God I don't run the Federal Reserve. These are just ideas...!
Reminds me of the welfare cases from NO who took our tax money to live on after Katrina and went out and bought wide screen TV's, etc.
You cannot help certain people, you can give them a million and they still will screw it up and expect us to bail them out again.
Wow. It's amazing how the poor are just the American whipping boy.
Your statement is correct, but there are flip sides to this as well. Rich fools screw up and use their celebrity to buy their way out of trouble and it's your tax dollars that get exhausted in Lindsey Lohan, Paris Hilton and Lil' Wayne court trials for extra security, court costs, yadda...yadda...yadda. And, they are PREDICATE/HABITUAL offenders because they think it's cute, and it probably costs $1M per stupid incident but they do it anyway because they know the repercussions are minimal. Some multi-millionaires have wonderful, offshore, tax shelters in foreign countries so they do not have to pay their tax obligations. But, yet, we complain about scams ran by poor people.
Your Nation's government spends $10B PER MONTH on Iraq, alone. When the country said, "I don't want this war anymore" the government did not say "well, it's the American people's tax dollars and they don't want the war anymore, so let's quit now." No, they sucked us dry and failed to allocate money for the oversight of wall street and, "BOOM", put us in a depressed recession. Then, to make it worse, they came back to us and asked us for MORE tax dollars in order to correct their foolishness because they use the American people as walking ATMs. All they say is "...don't worry about the money; the American people will pay for that." And, to make you feel bad, they tell you you aren't American if you don't support their war, if you stop paying on a worthless building, or if you question anything that they tell you (or, sell you).
In fact, I paid $48,000 in taxes last year, but I can't stroll into the White House and check it out, I can't pop in and check on the atomic warheads we have and make sure they are being properly maintained, and I darn sure cannot force my government to take care of victims of natural disasters in the USA as promptly as they can other countries hit by Tsunamis and hurricanes.
Sunny-Days, your comments are correct. But there are two sides to every coin. And, sometimes, no matter if you choose "heads" or "tails", you still wind up losing. Just a thought.
Last edited by ajsmith365; 10-20-2010 at 10:11 AM..
Everyone took the risk of buying a house when they should have better questioned the ridiculously fast rise in prices and how they were a sign that things were amiss.
Well put. Maybe this is a lessoned learned for all (affected or not affected).
Quote:
Originally Posted by mhouse2001
Which leads me to think that we need to excise this whole mortgage thing from our economy...With banks eager to find new ways to profit, they pushed the idea of home ownership on everyone, but what is home ownership when you have a mortgage? You NEVER really own it until it's paid off.
You never own it, period. Even if you pay it off, if you miss those annual tax payments, you are DONE. Image that, taxes on something that you already paid for.
Quote:
Originally Posted by mhouse2001
We allowed our economy to create monsters. And our legislators, drunk on the bribes and perks given them by the greedy bankers, allowed for the repeal of Glass-Steagal, a huge mistake.
Quote:
Originally Posted by mhouse2001
I know you're thanking God I don't run the Federal Reserve. These are just ideas...!
I'd advocate for you. But, you'd get fired in about your 3rd week into the job because your philosophy is totally in contradiction to capitalism.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,750,914 times
Reputation: 3587
What should be done is that the law should allow Bankruptcy to be used to modify loan terms for those who want them. A judge should be able to look at income, assets and bills and determine whether a mortgage should be modified. This is not a bailout but much the same way other forms of debt are handled under bankruptcy reorganization. It is silly to tell bankruptcy courts "oh, you can modify the credit cards, the car payment and all this other stuff but the BIGGEST debt- the mortgage- cannot be reviewed in any way".
What should be done is that the law should allow Bankruptcy to be used to modify loan terms for those who want them. A judge should be able to look at income, assets and bills and determine whether a mortgage should be modified. This is not a bailout but much the same way other forms of debt are handled under bankruptcy reorganization. It is silly to tell bankruptcy courts "oh, you can modify the credit cards, the car payment and all this other stuff but the BIGGEST debt- the mortgage- cannot be reviewed in any way".
You want to know why that is? Watch the video (warning: foul language)...
A large portion of these foreclosures are turning out to be illegal because so many of the banks cannot find the original notes! They should not be foreclosed in the first place. DOJ should be involved with RICO on these banks.
I bought a house that was (at the time) well within my means. It was a fixer-upper and I put tons of work into it as well as dollars. I insullated every outside wall and the attic portion and lowerd my utility bills because of that. Then I was unemplyed. I tried betting a modification from the bank and that went on and on until I finally gave up.
I'm currently working as a temp (at 6$ an hour less than I was making)- no more than 6 months per union rules and am scared. I went through all my savings and my 401k to keep paying my bills.
My house will soon be in foreclosure. Should you bail me out? No. I do fear when this position ends - I was unemployed for a year before I finally got this position.
Sometimes I ache for my old apartment, but, I wonder if when we all have to rent, then the 'owners' of the buildings or places we rent from then can raise our rent anytime they want to. This is what prompted me into buying in the first place - a fixed rate.
Just a thought on the renting process vs owning.
Trust me, if I hadn't lost my job, I would never have thought about renting again. I love my house and wish I could stay - but I cna't.
Behind on your mortgage? car reposed? owe the IRS over 20000$ relax get the credit you deserve. just call 1 800 screw taxpayers and workers
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