I'm no economist or expert in this area. But I'm opposed to bail outs in general. I believe in financial Darwinism.
Good starting post because it prompts interesting replies. I have two remarks. First, Grossâs high level of concern is a poor portend for the economy -- if, that is, his reputation for âsky is fallingâ remarks is unfounded. (Important "if.") Second, if there is to be a bail out, for goshsakes wait until after November 2008, when a bunch more silver spoon Republicans are run out of D.C. Otherwise, the so-called bail out money will end up in Dubai, in the pockets of Carlyle, Cheney & Co., and in private banking accounts in Singapore (and like havens). If I'm paying for it, I'd rather see it in brick and shingles.
bailing out subprimes is rewarding fraud & stupidity (leverage on paper that was probably over-rated)... also, its price support for real estate that should adjust downward as properties are repriced after foreclosure. the end result of a market correction would be a a strong buyer, since he owes less, and utimately mroe stability in the market. the subprimce borower goes back to renting, where he belongs. What Pimpco never asks is if the Chrysler bailout was a bad idea in the first place? if govt indicates that it will intervene, does that imply a "safety net" under credit markets? would that imply higher prices could be paid? would higher prices and increased stability in credit markets benefit PimpHo. dont be a sheeple;, the credit markets are being impacted well beyond ONLY subprime paper. govt & the FED continues to override the business cycle - just what we need, a dufus Mofo like Bushco being manipulated by special interests, again!
most americans are against a bailout, me included. so far, bailouts have been introduced as legislation and bush has said he would reject them. but be careful, there are subtle ways the government can bail out these homeowners without legislation. the Fed can lower rates and say that it's taking a strong stand against inflation. that would cause interest rates in general to go down which would lower ARM mortgage payments that are in the floating period. the treasury can issue notes & bonds, causing yields to go down. that will have the same impact on ARM payments. i'm concerned there will be some sneaky attempt to bail out these fools, not by legislation but by monetary policy.
Why do you say that? Where do you want the money to go, if it's going to be spent? They're your tax dollars (mine, too). And remember, in Iraq, Cheney has spent more than the annual GDP of some G7 countries and still the lights aren't on and the water is off. What makes you think he'd do any better in Socal?
Tons of fraud on the borrowers in those loans - the big thing will be something that was called yield spread or broker rebate - where the saps were fooled into thinking it was a payment by the bank directly to the loan broker and therefore not a charge on their tab, but it really is - one way or another. Big money in this too - it really fueled the decentralized non-bank and internet lending boom through mortgage brokers. My guess is Gross has an idea where the CA Assembly may go with the mess there if it gets bad - they'll greatly delay enforcement of the mortgages, maybe even make some of them unenforceable, which will really sweat the lenders and investors. Other states could too - there's enough populist fervor over subprime for a backlash.
If you have evidence of Cheney stealing the money then call a U.S. Attorney. If you're just into sophomoric innuendo then hang out in the dailykos message board.
homeowners should be bailed out by cutting the fed funds rate. allow people to refinance their mortgages at lower interest but dont allow them to cash out any money from the equity of there house. the government did bail out chrysler and all these other crooks so why not the people that pay the taxes in this country.
Just another drugged out loony..... you people are really astoundingly ignorant about anything to do with the economy or finances.... Cheeny is going to get money from a home owner bailout????? You really need to get some professional help.....maybe talk to a family member about how to get you in a clinic or some sort of intervention program.... Good luck to you..... SteveD