. Pa(bs)Prime: You're a socialist who advocates government control ala' Lila yet you have the balls to criticize Bush for bailing out low income homeowners in delinquency. We should follow the way of Brazil and force folks to live in shantytowns. ********* September 1, 2007 SouthAmerica: At least you should get his name right. Itâs Lula. Not hard to remember. The New York Times had an article yesterday mentioning that a large number of these people who are defaulting on their subprime mortgages in Florida, California, and some other states â are speculators who where playing the flip game of one property after another and they did that because property values were on the way up. But now that the market reached a saturation point, the speculators are crying like a baby - please bail me out. Regarding the other group of people who are becoming delinquent on their mortgages â under rational circumstances and competent business practices most of these mortgages would never have materialized. In a nutshell: You are defending the speculators who got caught because of their own greed and are in trouble now, and the bad business people who should lose money because they made a bad business decision when they extended mortgage to people who could not pay it back. By the way, Brazil does not force anyone to live in shantytowns â Brazil is a free country and people have the choice to live anywhere in the country where they desire. .
Hey I have a great idea! Lets keep the artificial market prices high by propping it up with more free govt backed money so that the next generation will be priced out of a home for decades, yaaaaaaaaaaaay, wonderful idea. Idiots.
. September 1, 2007 SouthAmerica: Reply to traderdragon2 Today I was listening to Bloomberg news on the radio when I was driving â and they were interviewing this Mexican woman who is defaulting on her subprime mortgage. She works at a Wall-Mart as a cashier, and her husband also had a low paying job. And I donât doubt that they are a very hard working couple and want to improve their lives. But they decided to buy a $ 400,000.00 house and managed to find someone to lend the money to them â a subprime lender. At first they barely managed to make the monthly payment on their mortgage. Then the interest rate changed on the mortgage and now they have to pay $ 700.00 dollars more per month, but they were already at the maximum point of their financial means. There is no way they can afford to pay an extra $ 700.00 per month to anyone. When I heard that on the radio a thought came to mind: Who on his right mind would finance a $ 400,000.00 house to a couple earning a Wall-Mart cashiers minimum wage? Only an incompetent jackass. .
One thing I've learned is that whenever there is a politically motivated bailout, it is too little, too late, but then it will sometimes overshoot. Like the assistance for the Katrina victims. Another is the tax cut for Florida. By the time this BIG property tax cut is fully implemented, most the people it was supposed to have helped will have lost their homes. And it is laughable how small the savings are. I saved $50 ANNUALLY on a townhouse, for example. Thank goodness I wasn't banking on it. SM
Years ago, nobody would have funded the loan. But today, they can strain for the approval, everybody makes their points and fees, and the loan can be "securitized" with other equally poor loans and dumped on naive bag-holder investors. So... borrowers get hosed, investors who bought the securitized loans get hosed, and the bankers/mortgage brokers "get outta Dodge" with all the money. Let's not forget Greenscam, the Big Cheese... he facilitated all this. Amerika... what a country!