Housing bailout socialism from GWB.

abudabit

New Wackbag
Oct 10, 2004
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#1
WASHINGTON (AP) - Offering federal help for strapped mortgage holders, President Bush is proposing to aid hundreds of thousands of borrowers hard hit by the housing slump.

The president on Friday was to talk about several initiatives and reforms to help homeowners with risky mortgages keep their homes, a senior administration official said Thursday. Bush also was to discuss efforts to prevent these kinds of problems from arising in the future.

The official said Bush will direct Treasury Secretary Henry Paulson and Housing Secretary Alphonso Jackson to work on an initiative to help troubled mortgage holders get services and products they need to keep them from defaulting on their loans. The official spoke on condition of anonymity to discuss details of the initiatives ahead of the presidential event.

Bush also planned to:

- Urge Congress to pass Federal Housing Administration overhaul legislation that would give the FHA more flexibility in assisting mortgage holders with subprime mortgages.

- Pledge to work with Congress to reform the tax code to help troubled borrowers rework their loans.

- Call for rigorously enforcing predatory lending laws and strengthening lending practices.

Foreclosure and late payments have spiked, especially for so-called subprime borrowers with blemished credit histories or low incomes. Higher interest rates and weak home values have made it impossible for some to pay or to keep up with their monthly mortgage payments. Some overstretched homeowners can't afford to refinance or even sell their home.

Mortgage foreclosures and late payments are expected to worsen. Some 2 million adjustable rate mortgages are to reset to higher rates this year and next. Steep penalties for prepaying mortgages have added to some homeowners' headaches.

The economy enjoyed a strong revival in the spring although growing troubles in housing and credit markets have darkened prospects considerably since then. The Commerce Department reported on Thursday that the gross domestic product grew at an annual rate of 4 percent in the second quarter - the strongest showing in more than a year.

But that growth could be the best showing for some time as the economy continues to be battered by the worst housing slump in 16 years and a widening credit crisis that has sent financial markets on a roller-coaster ride in recent weeks.
Par for the course with this guy, an industry fucks up and over inflates and we are required to bail them out. Good to know we get to cover for the mistakes of speculators, even though speculators are the asses who cause us to pay for artificial inflation.
 

HummerTuesdays

Another girrrrl!!!
Apr 24, 2005
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On the road to ruin
#2
I say fuck 'em. Fuck the banks that gave loans to those with lower credit scores. Fuck the people that can't be responsible and pay their bills. I feel for the people that have fallen on hard times (might be on disability, have an illness, etc) but for the most part, they allowed irresponsible people to own a home with a mortgage that was beyond their means.

Either refinance or get another job. I'm tired of working my ass off to keep up with my bills while everyone else gets a free fucking ride. How about some "personal responsibility" for a fucking change?
 
#3
It's a tough fucking call to make. On one hand I say well what do expect? On the other hand I say the housing market as a whole is the primary lagging indicator of what this thing we call an economy is. Now I know I was on the bandwagon ages ago worrying about the housing market "bubble" And people thought I was nuts.

But now it's coming to pass and the options we have are few. People here all too well know this administration and it's policies and spending habits, it's willingness to mortgage the future away by borrowing and many more things I don't agree with it on.

As a whole I can't go along with public subsidizing either. I am willing though to say if done right. Not by just giving free money away but by utilizing the Fed, and stabilizing the whole thing through the rates. And aiding the stimulization of the economy for the ones now who find themselves in a precarious buyer's market. I'm not for bailing out the housing industry. But I have little issue with helping the ones who do have money buy some of these homes as the bubble bursts to soften whatever fall is coming. If some low interest loans will bring people back I can't argue with it.


Sometimes you can't just stand there while the bottom falls and say "see I was right." You have to be able to help with the process. I'm willing to do that.
 

abudabit

New Wackbag
Oct 10, 2004
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#4
I think the best way to help is to do nothing. Let the prices bottom out and rebound to realistic market value instead of speculator market value. And for the speculators? Well tough shit, they gambled and lost. We can't start bailing out gamblers because then the house (the house being the buying market) loses either way.

The market balances itself out, speculators in a frenzy throw off that balance. Unbalanced markets usually cause inefficiency and chaos. Fuck the over anxious speculators.

Too many houses / apartments were built. Silver lining is that a string of forclosures means houses become affordable. And as the houses become affordable, not so many get built. We return to a more natural rate of development, a more realistic housing price, etc. etc.
 

Schmed

I'm a corpse without a soul...
Nov 4, 2002
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Shitsville, NY
#5
Greedy banks and loan officers that lent $$ to sub-prime, fuck 'em.

Hedge funds with CMO and CDO instruments on risky loans, fuck 'em even more.
 

TheDrip

I'm bi-winning.
Jan 9, 2006
5,051
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#6
I'm inclined to say fuck 'em too.

Why bail out stupidity or people that don't inform themselves properly before making one of the 'biggest decisions of their lives" as home buying is commonly referred to.
 
#7
if you've ever worked in collections or sub-prime lending, you would come to realise that about 15 percent of borrows in this market have honestly fell into some shitty luck, while the remaining 85 percent are borrows who fucked up in the past, and are completely aware of the consequences of going default, yet still take out another loan or line of credit knowing that they can easily go delinquent any month but give it little concern. Little concern that is until there heads are in the oven and suddenly it becomes everybody else's fault but their own.
So, this is just an excellent plan, now not only do i have to pay my loans on time every month, but now i have to give some of my tax dollars to cover the small minority of borrowers who just 'let shit ride,' and claim ignorance when the banks come knocking.