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Old 02-12-2008, 06:02 PM
 
Location: Houston, Texas
469 posts, read 1,425,776 times
Reputation: 295

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Paulson and the politicians are at it again or are the big banks in big trouble. I am sure these six are not doing it out of the kindness of their hearts. What are peoples opinion on the following article.

Inman Real Estate News - Six lenders throw seriously delinquent borrowers a lifeline
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Old 02-12-2008, 10:41 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,554,405 times
Reputation: 958
I personally think that this, like the other "bailouts" recently introduced are strictly window dressing. Many of these programs, whether it be FHASecure, the rate freeze, or the economic stimulus bill, are more for poilitical positioning and PR than anything. Why do I think that? Because they don't work.

I do believe the market should be left to correct on it's own. IMO it's the only way to prevent this from happening again in the near future.
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Old 02-12-2008, 10:43 PM
 
Location: ✶✶✶✶
15,216 posts, read 28,808,983 times
Reputation: 10797
All of this "stimulus" and bailout garbage is pure election year political posturing.

Let the chips fall where they may. The banks were stupid to dole out credit to anyone who thought they wanted a house.

Problem is, if the banks fail, doesn't the federal government have to pay out bigtime anyway (FDIC)?
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Old 02-13-2008, 08:43 AM
 
Location: Atlanta
739 posts, read 742,195 times
Reputation: 279
Amen,

The stimulus package is nothing more than election year pandering. Prior bailout efforts have failed. What the liberal media is not telling people is that approximately 70% of people who have been foreclosed upon lied about their income to get mortgages for homes they had no reason buying.

Leave the markets to correct themselves - yes, it will get ugly before it gets better. But we've all seen how kids turn out when Mommy & Daddy always bail them out of trouble so they don't have to face the consequences of their actions.
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Old 02-14-2008, 05:53 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 21,122,667 times
Reputation: 6439
I think the last time we let markets work themselves out, we ended up in the great depression. Since that time, the government has almost always acted (to varying degrees of success/failure) to prevent a recurrence of that event.

No matter where one sits on the political fence, I think we all have to face the reality of government intervention on some level. I'm not a big fan of government regulation, but I think it's easy to see that had the mortgage markets been more closely regulated, the current situation would be less ugly than it is.

A dozen failed banks wouldn't be doing the economy any favors, but it would give those that favor unrestricted markets exactly what they want.
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Old 02-14-2008, 06:35 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,554,405 times
Reputation: 958
Quote:
Originally Posted by DMenscha View Post
I think the last time we let markets work themselves out, we ended up in the great depression. Since that time, the government has almost always acted (to varying degrees of success/failure) to prevent a recurrence of that event.

No matter where one sits on the political fence, I think we all have to face the reality of government intervention on some level. I'm not a big fan of government regulation, but I think it's easy to see that had the mortgage markets been more closely regulated, the current situation would be less ugly than it is.

A dozen failed banks wouldn't be doing the economy any favors, but it would give those that favor unrestricted markets exactly what they want.
Ironically, it is the government that pressured lenders into loosening guidelines to boost the economy through homeownership after 9/11. Between that and the Federal Reserves policy of cheap credit, there was only one possible outcome.
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Old 02-14-2008, 06:48 PM
 
Location: Houston, Texas
10,444 posts, read 47,792,362 times
Reputation: 10573
Im going to agree with Demensha up above, probably because he is right. I dispise your government. If I have to live with them then I must admiit they do have a fuction in our society other then lying and extorting taxes from us. And one of those functions are to coax and nudge the economy ahead or backward to suit the good for all.

In this case the govt should do something, something short of bailing out banks or borrowers of course. But something.

For those of you who wish the Feds should do nothing, Im curious, are you selling your home now or just staying put till this whole thing blows over? I thought so. Now lets suppose you make believe there are other humans that walk this earth besides yourself. Believe it or not, some of them simply have to sell their homes for a huge varity of reasons, none of which are any of your business but sure as hell should be your sympathy towards your fellow man.

Now live and let live and let those you (not me) trust do as you (not me) voted them to.
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Old 02-14-2008, 07:57 PM
 
126 posts, read 326,908 times
Reputation: 32
Maybe they can just give them the houses .
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Old 02-14-2008, 08:32 PM
 
Location: Wouldn't you like to know?
9,116 posts, read 16,736,279 times
Reputation: 3720
Quote:
Originally Posted by DMenscha View Post
I think the last time we let markets work themselves out, we ended up in the great depression.
Not true. We had a housing bubble somewhat similar to this in the late 80's/early 90's that corrected itself.

That's what markets do.

Do you actaully believe people like Hillary Clinton are acting in the best interest of america when she wants to "freeze" foreclosures and interest rates for a period of time? Its political BS. She and everyone else with a plan to "help" the "victims" is just looking for votes plain and simple.

I follow the rules....where's my break?
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Old 02-15-2008, 07:59 AM
 
Location: Atlanta
739 posts, read 742,195 times
Reputation: 279
Quote:
Originally Posted by DMenscha View Post
I think the last time we let markets work themselves out, we ended up in the great depression. Since that time, the government has almost always acted (to varying degrees of success/failure) to prevent a recurrence of that event.

No matter where one sits on the political fence, I think we all have to face the reality of government intervention on some level. I'm not a big fan of government regulation, but I think it's easy to see that had the mortgage markets been more closely regulated, the current situation would be less ugly than it is.

A dozen failed banks wouldn't be doing the economy any favors, but it would give those that favor unrestricted markets exactly what they want.

Again, why should we bail out people who lied about their income to buy homes they couldn't afford without lying? Secondly, the great depression was caused by an unregulated stock market - not the real estate market. I've lived through a few of these corrections. It always works out for the people who were intelligent about their acquisitions and who didn't abuse debt. And for those who aren't so intelligent - well, they just got a very expensive lesson that hopefully they won't repeat.
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