You people joke, but this crisis was created by the predatory lending practices on mortgage companies. The adjustable rate, and interest only mortgages were pushed upon the unsuspecting, uneducated general public. The Federal reserve, as the central bank has a responsibility to fix the problem, and then set regulations that will not allow it to happen again. My #@$$% people were duped. When the hell are people like you gonna get it. People always want the easy way out. They saw riches in buying homes with no money down and then thought they were gonna flip that house to the next sucker. Now Bush is going to let these idiots off. I thought I've seen it all. What a freaking joke a rep president talking about bailing these people out. In order for markets to work there must be winners and losers. It seems they are rewriting the rules to have only winners.
Everyone here has probably been to a mortgage closing. There's a mountain of documents that the buyer just signs where he/she is told. They read nothing. If they sat there and read each document, a mortgage closing would take 12 hours. But you're right, people really should read what they sign.
totally. as a friend aptly put it, the economic trend during the bush years has been to privatize the profits while socializing the risks and losses
The truth in lending statement sent a few days after the application is pretty clear and only a page long. What was funny was how you heard mortgage people say don't worry about nothing down and the PMI. Next year the house will appreciate and you can cancel the PMI because you will have 10% equity. Still curious how far things will fall...a deal on a beach house would be nice but prices would have to fall quite a bit.
You're right. Bloomberg TV was interviewing someone in the finance industry today -- I don't remember who -- and he was saying the same thing. Some people knew the loans were risky and they speculated. But other people were talked into bad loans by high pressure from brokers. "C'mon folks, everybody is going upscale on houses with these ARM loans. Sure, the payments are steep but the house will be worth more down the road so what's to worry about. C'mon, everybody is doing it." The other problem, which no one brings up, is that our high schools offer NO financial survival education. NONE. Kids come out of school and they don't know what compound interest is. They become sheep ready to be sheared.
Bush timed the announcement with Bernanke, to prop up the market. Has New Orleans (or will it ever) be rebuilt? No. Bush is just jawboning to prop up the market. I bet nobody gets any help.
Reagan helped to bring down the Berlin Wall. Little did he know he also helped to spread communism to the US. And the Republicans are calling Clinton a commie? Talk about hypocrisy!
Do you for one min think Bush cares about folks losing homes. Give me a break here. Bush was part of the Sav and Loan Bail out years ago. He will help bail his friends out of the loans they made. Oh sure, they will help a few people (only the ones they know have no prayer of keeping their home longterm) with a short term fix. Help the folks who should have never got a loan to start with. Oh and will the rest of the world follow this class act. Trying to get toothpaste back in the tube is harder than it sounds. This thing is unwinding. It will take years to absorb all this lousy credit crap. Banks set to cut 10-15% of staff - FT (08/30/2007 09:15 PM) Why a U.S. Subprime Mortgage Crisis Is Felt Around the World - NY Times (08/31/2007 04:55 AM) Unless Bush in superman, he can't contain this, just postpone for a little while. Just one man's thoughts Keith
Nobody pushed anything on anybody. These homeownere knew what they had been doing, using their home as credit cards to finance a lifestyle. These people kept doing it till the candle burned out . Once the candle went out , they can't afford the payments. Real estate valuations didn't increase and hence they can't credit card their homes again. They are stuck between a rock and a hard place. Now they blame all others for their ills. Lenders, mortgage brokers, the whole world. Just ask them what did you do with that nice chunk of money you got a year ago when your refinanced? What happened to it? Its a shame our government and the Feds have to bail these clowns out . What a treat and a half !
People can no longer use their houses as ATM cash machines, the only way out of this for most is to buy millions of life insurance and hope their inheriters are more intelligent in their spending habits.