people buy homes they cant afford, with financially suicidal mortgages, live it up cashing out and spending their rising equity, then cry for a bailout when they realize that risk/reward doesnt always mean, take a risk, get a reward? does that mean I get losing trades refunded? heads they win, tails prudent taxpayer loses
they were always glorified renters... still are. they aren't the ones being bailed out.. its the banks. the banks should know better.... the signs were everywhere. they will paint this as a home owner bailout... but ultimately the banks are rewarded for being irresponsible. this happens all the time on the world scene... ie.... the IMF makes loans to countries they know cant pay it back.. good way to steal resources. all one big scam.
S & L bailout in the early 1990s laid the groundwork for this, 1/2 trillion hit to the taxpayer, keating 5 prick mccain still in the senate f-cking over the taxpayer again with amnesty for illegal aliens you get what you reward, be it irresponsible mortgages or illegal aliens
We in Australia don't 'bail-out' people who can't/won't pay their mortgage. We run an economy based on the principles laid out by Adam Smith among others ('the invisible hand of the market'). I think your problem is you guys are too close geographically to Cuba and Venezuala. Their communist style systems may be starting to influence your policy makers. Why don't you all let 'the market' work it out? Someone who can't/won't pay their mortgage SHOULD NOT be bailed out by the taxpayer. Lobby your lawmakers, tell them this is wrong!
I hope our govt bails out each and every single one who needs it. WTF do I care? It is no skin off my back (you might say, somewhere down th line it'll cost me) it won't effect me one iota in the grand scheme of things. If I can see my neighbor remain in his home thanks to the govt, great, at least I can see some tangible results from the taxes I pay. These are our fellow citizens for better or worse, wtf do we have a govt for if not to help joe dumbass sixpack who tried.. We send aid to foreign countries, we are going to build a bridge to nowhere in Alaska, we spend money for studies on why inmates escape from prison, why flies fly, etc etc. People make mistakes, big friggin deal, maybe they'll learn something, if they don't, they don't.
wrong... they would be better off renting and letting the banks take the hit. fck the banks.. they caused all of this... lets seize their assets while were at it.
every action has a consequence by rewarding those who were foolish, you subsidize a still artificially high house price, forcing those who stood on the sidelines of this madness waiting for reality to inevitably return to pay a higher price, or wait longer to get into a home and adding insult to injury, you force them to pay for that subsidy with their taxes health can never return after a bubble, until the bottom is allowed to arrive - forclosures are part of the process of concluding a real estate bear market supressing contraints like lending standards creates bubbles - bailouts only extend the resulting bear market, and set the stage for other bubbles, as people in the back of their minds know that someone else will take the hit for the risks they couldnt afford to take "People make mistakes, big friggin deal, maybe they'll learn something, if they don't, they don't." what they learn, is that recklessness pays and prudence is punished - that's why they call it the 'moral hazard'
i'm still stunned about the bailout plan. however, until i see the details, i gotta think it's more of a political ploy and any bailout will have strings attached. why? because every poll i've seen shows americans overwhelmingly against a bailout. only a tiny fraction of homeowners are in need of bailing out. the vast majority are current on their payments or don't have a mortgage. i don't see them willing to pay for someone's greed or irresponsibility. we'll see.
Absolutely right. When a large portion of the people do not pay federal income taxes, those people are going to be all for gov't bailouts, and their politicians will surely oblige. A flat tax that applies to all income would go a long way toward solving this and many other shenanigans.