The stupid and irresponsible "home owners" bail out is happaning

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Why is there any need to bail out home owners who took the risk in the first place. I didnt see anyone bailing anyone out in the late 80's and early 90's.

There will be more problems if they bail these "home owners"out . They should just let it take its own course and not intervene with the problem.

 

The coming bailout, however it is exactly done, will make summer/fall 98 LTCM show look tiny.

 

http://bloomberg.com/apps/news?pid=20601087&sid=a3r_IRjU20O0&refer=home

Orange Country joins a growing list of state and local governments at risk of losing money from investments sold as high-yielding havens that have been contaminated by the collapse of the subprime mortgage market. Florida, Connecticut, Massachusetts, Montana, Maine and King County, Washington also have disclosed investments in SIVs.

 

Ultimately it won't bail out anybody. These people have a different problem. Most thought they would live in these houses a year or 2 and make the huge payments, then sell at a BIG profit. Well, there is no profit and they can't afford to pay 80% of their takehome pay to a mortgage, much less heat 7 bedrooms.

That is the real issue. Prices went to high b/c of easy loans to irresponsible buyers. A "rate freeze" just slightly delays the inevitable. Don't lose focus.

 

Freezing the rate won't help those that are in interest only mortgages.

Those adjustments are generally a hell of a lot more devastating than a rate increase.

Interest only loans (and sometimes negative amortization as a result) are being totally glossed over.

These are major culprits and no one can do anything about it.

Everyone, EVERYONE involved deserves everything bad they get from this.

 

i have 8 bedrooms, and what do you mean by heat? here in soflo, we don't need no stinkin heat.

 

Absolutely correct.

 

What if prices rebound and these dopes end up making a killing?

 

Then they'll blow all their profits and rack up even more debt and then they'll end right back where they started.

Being a loser and a subprime borrower is a mindset and lifestyle.

Look how many people win the lottery and then end up filing bankruptcy a couple years later.