The American dream of home ownership has been jeapordized by those that try to get more than they can afford. Getting ARMs at rates that are the lowest in decades and thinking they aren't going up, buying a house that has payments that you struggle each month to meet just to be able to get into that "McMansion". While the financial institutions did make it easy, the homeowners themselves were the ones that signed on the dotted line when taking that step to live beyond their means. Clark Howard Rules!
Right. And since drug-takers take drugs, why do we bother to prosecute drug dealers? Aren't they just offering them? Doesn't mean they force people to take them!
Give us a break. Selling drugs is illegal thats why we prosecute them. Selling a loan to dumbshit joe sixpack is not. Purchasing a home is the biggest financial decision of ones life. I am sick and tired of people like you saying its not the buyers fault for their predicament. This problem rests soley on the buyers of these mcmansions.
Ho-hum.... dumbshit joe sixpack took a loan from dumbshit loaner who didn't care if he could pay it back (was he too dumbshit to check on the guy's credit or earnings?). It was then packaged in CDO's to dumbshit "investors" who were even dumbershit by dumping billions into them and soaking their companies. So the dumbshit Fed is now trying to bail them all out. Lots of dumbshit to go around - unless you got paid big the last few years for artificially inflating your company's earnings on hot-air dumbshit.
Since the original mortgages are contracts, and investors purchased those contracts expecting the collect a higher interest rate in the future after the rate adjustments, how can a 3rd or 4th party come by after the fact and modify the terms of the contract? Solution: Helicopter Ben can just print up some special dollars just for those investors.
Would that what you said could be done!!! But no - he will devalue the dollar of the masses - because that is why they exist - to absorb the misdeeds for the elites who profit from such things.
There will be lawsuits from multiple parties. The cdo/cmo/siv investors will sue from breach of contracts. People who are not apart of the "middle" (paulsons words) will also sue. Basically alot of lawsuits will happen.
http://online.wsj.com/article/SB119639697577209194.html?mod=googlenews_wsj "This month, a state judge in Cincinnati dismissed a foreclosure lawsuit brought by Wells Fargo Bank because the bank filed the suit before it had acquired the mortgage." Seems a lot of these CMO owners don't have their proof-of-purchase coupons. Another reason to bail them out so they don't have to suffer from "dumbshit" stupidity. Let the bonuses flow!!!!
alot of people here are missing the point i made earlier....this is a bailout for the banks!!!! the politicians don't give A SHIT ABOUT THE BORROWERS...the do care about where their next campaign funds are coming from. and the current administration is all about keeping wall street happy and big business happy.free market capitalism is only for small business owners.IMHO
All this blame on the homeowners, what bullshit. I met a guy that writes sub prime loans. He's a coke head that has people scouring their neighborhoods for anybody that might qualify, then he fixes up the documents so they will pass muster and he gets $8000 -$9000... one gal is in foreclosure only 3-4 months after buying a house, nobody can figure out what that's about... All these businesses in the US are from the "Tax me nothing and regulate my competition out of business" school and they pay the politicians to effect that for them. I would say that there is absolutely nobody watching the lending business with any authority and power to do anything about any abuses, ever... get over it.. I hope we sold lots of those CDO's to European banks so we can get back some of our tax monies that flow through the Fed Reserve to Europeans... and really, who gives a rat's posterior if a bunch of financial institutions in the US go belly up? Hey, all those lost jobs are just service sector jobs that everybody was bitching about for the last few years, maybe some of those people can go learn how to actually make something besides a bonus for their bosses and sell it and contribute to the manufacturing sector now that the dollar is weakening...