Mortgage lenders set for federal bale-out

pfiandra · 07-23-2008

This just doesn't seem right.

Silobreaker: Mortgage lenders set for federal bale-out

Why should the guy who purchased a home responsibly, one he could afford. He's struggling to pay his own mortgage and now he has to help bail out someone who purchased one of those McMansions he couldn't afford in the first place. I realize it would be a disaster if Fannie Mea and Freddie Mac go belly up, but it just doesn't seem fair, it doesn't seem right. It goes against everything I was taught.

**jim293** · 07-23-2008

You are right it is not right. But what can we do?

jessekelli · 07-23-2008

i hear you i used to be a real estate investor and put down 10% on every house i bought i did it the right way,but there were those people that did not ,hey got invest in homes for 0-3% down and then they tried to flip them.

Good for the Country bad for most individuals

**countymounty** · 07-23-2008

Just what would happen if they went belly up?
Let them fail. The airlines is the perfect example of a horrible private company bailed out with our tax dollars and look at them now……

**jim293** · 07-23-2008

I do not see these people bailing private parties out when they are losing there homes. Who is going to help them.

shartley · 07-24-2008

Banks and Mortgage companies are businesses. They make (and have made) loads of money from their "customers". And has anyone read what YOU are responsible for vs what they are NOT responsible for concerning all your transactions? IMHO it should be criminal... be we have NO choice in the matter.

I say let them eat the bad decisions. Businesses go under every day of the week and we don't see the Government stepping in to save them all, so why now? From what I understand the Government (or US) would cover the bad loans, but the person still looses their homes and the home gets put back on the market. That is hogwash. The "bank" wins twice and is in a win-win situation.

I also heard on the news the other day that it would cost the tax payer WAY less by just letting these businesses eat the losses than if we bail them out.

But in closing... I am just sick of the "big boys" getting the "help" and tax payers' money when they mess up, while small the medium size businesses get NOTHING and go under for hundreds of reasons every day. I say NO ONE should get tax payers' money.

napalmbomb · 07-24-2008

Quote:

Originally Posted by countymounty

Just what would happen if they went belly up?
Let them fail. The airlines is the perfect example of a horrible private company bailed out with our tax dollars and look at them now……

I agree, what really would happen? Why should a bad business be bailed out for a bad business decision? Let them go under. All of those houses and condo's will not just turn to dust and disappear! Someone will do something with them. And I'm tired of hearing that if we don't bail out these screw ups the market will collapse,, BS! Your house is only worth what someone will pay for it. And right now it is a buyers market!

Denver cobra · 07-30-2008

A complicated issue to be sure, with international ramifications that might not be obvious.

"If the government had not guaranteed the full payments of principal and interest on their paper, the foreign governments that own so much of it might have had to show losses on their dollar-denominated accounts. To say the least, this would make them reluctant to continue to finance our trade deficit, our wars and the strength (such as it is) of our dollar. Our interest rates, and not just for mortgages, would soar."

http://us.rd.yahoo.com/dailynews/fc/...ef=todayspaper

shartley · 07-30-2008

Quote:

Originally Posted by Denver cobra

A complicated issue to be sure, with international ramifications that might not be obvious.

"If the government had not guaranteed the full payments of principal and interest on their paper, the foreign governments that own so much of it might have had to show losses on their dollar-denominated accounts. To say the least, this would make them reluctant to continue to finance our trade deficit, our wars and the strength (such as it is) of our dollar. Our interest rates, and not just for mortgages, would soar."

http://us.rd.yahoo.com/dailynews/fc/...ef=todayspaper

Then stop trading mortgages as if they were commodities and stocks. By doing so those who BUY them also buy the risks they come with. You can't have it both ways... yet it seems everyone does.

8ballnut · 07-30-2008

Just out of curiosity, I wonder what the ratio is (Republicans : Democrats). In other words, which is truely the more "fiscally responsible" party.