Why is it the ones who took out shady loans are getting bailed out? I understand the argument that if we don’t help them it will get worse for all- but doesn’t that just feed into the mentality that the government will just bail you out if you make a bad decision.
Here we are with a 30 year fixed at a great interest rate but have outgrown our home and can’t afford to sell because of those who cheated in the mortgage game and blew the economy. We scrimped and saved for years to get a down payment and now it is gone. If the goverment is truly interested in making things better for all it would require forgiveness of these extraordinarily high loans to those who made good decisions- (high down payments and fixed loans)- and are making thier payments. This would in turn stimulate the economy in that I came name off hand a dozen people who want to move or upgrade and cannot because of people who made the types of shady loans that they did.
The travesty of it is, that we the responsible taxpayers will be the ones actually bailing everyone out. Sickening.
Do you think the government cares about you. Peace
This problem highlights the demise of the old saying that we will have consequences for our actions. Apparently, it’s no longer true.
Get your check book out – we are all paying for these dimwits and their greedy, complicit lending companies.
There is much more to the picture than what you paint.
We can thank the economy, and in doing that we have to thank the political party that has been in the White House while the economy was going down the toilet, and telling us that all was well until they could no longer deny the facts. Thank you gwb.
Boy do I agree with you. The government is stupid to bail out stupid people and make the rest of us pay for there stupid mistakes. Instead, the government would do a lot better to heavily fine the lenders that set up such crazy loans in the first place. They are the ones that should pay, not the hard working citizens like you that did the right thing. No wonder the economy is in a mess. Less government is better for all of us.
I agree, a lot of it does fall squarely on the irresponsible people who lied on no-doc loans, who agreed to payments they knew darned well they could not afford.
You can also lay blame to a few Civil Rights lawsuits (Chicago).
The lawsuits lowered the standards to allow people in certain minorities/areas who had previously not been able to secure a loan because they simply did not have cash or credit history, and of course no means to repay the loan, to have mortgages and now of course most of the mortgages are in default.
If you, like millions of others, were so unlucky as to lose your job or have your business fail due to the poor economy, and were about to lose your own home, I am sure you would be asking a very, very different question. Those people you accuse of “not playing by the rules” actually were playing by the rules – they did nothing illegal or immoral. The “rules” were just stacked against them and, as usual, in favor of the banks.
First, many of the people who are losing their homes are not losing them because they were irresponsible, but because they have lost their jobs, and/or because their income could not keep up with rising fuel prices and other cost of living increases under Bush’s failed economic and domestic policies.
Also, those who took the loans (with some exceptions) are not at fault for not understanding mortgages and contracts, and instead trusting those who do (and who lied to them and screwed them over).
As usual, it is the banks and billionaire investors who are getting billions of dollars from the government, not the homeowners. So don’t worry about a few cents of your hard-earned tax dollars going to extravagant, irresponsible leeches who are just out to get your money. They are going to the extravagant, irresponsible leeches who sold them loans knowing that they would have trouble with them down the road.
And in case anyone thinks that I, like you, am only worried about my own self interest: I am a homeowner who made a huge down-payment on our home and have no worries about losing it – but who has seen the value of our home fall, too. And I am not expecting the government to help me, but to help my neighbors and fellow citizens who through no fault of their own find themselves now to be victims of a selfish, greedy, de-regulated free market mortgage system.
Its not a bail out.
Its not forgiveness, they still have to pay the loans. The people who made those bad decisions are the mortgage companies and banks.
In fact,if they wanted to avoid this crisis, all they have to do is not raise those crazy loans they made to the point where the owners can’t pay. The owners have been paying thousands of dollars a month, now the mortgage companies want to raise their interest rates to a point where the owners can’t afford it. Want to end it? Let the mortgage companies continue at the interest rates those people can afford.
But they won’t, they would rather lose the owners and foreclose on the home. THat makes no sense at all.
Don’t blame the people who bought their homes, they don’t want to be evicted, blame the banks who gave the OK to people while telling them it was fine, that they could afford it, that the market was only going to go up. If you have a mortgage you know you didn’t go in and tell the bank you want a thirty year loan at 4% with no points and no prepayment, oh, and don’t ask for income verification please.
Yet that’s what the professionals, the banks did.
Those homeowners are just as upset as you are, and small though it may be its still a roof over your head, those schmucks who believed the bankers are the ones sleeping with the stars over their heads.
I am with you 100%. It’s the biggest travesty in America today to think that my tax money is going to bail out criminal negligent millionaire bankers and low-life people with the worse credit imaginable – it is outrageous. People, along with our current super biased, anti-American media outlets, leads us to believe the politcally correct term “SUBPRIME MORTGAGE” is just representative of a certain type of loan to finance the purchase of a home, when in reality, it is analogous to “special finance” in the automobile industry. Anybody who pays their bills late, regardless if you pay your bills months late, is able to finance through with a regular loan, although at at higher interest rate. The people in the subprime mortgage loan are people who don’t pay attention and who has never paid a bill in their life. For instance, if you had a car repossessed last month, or had a house foreclosed on last year, an FDIC bank would be forced to deny your request for a mortgage. However, these are the people who make up 99% of those individuals who were given subprime financing. The vast majority of these people bought houses, knowing they were never going to pay, so in effect, were going to live rent free for over a year until the banks foreclosed on the property. In addition, almost all of the so-called subprime “victims” actually financed for amounts far exceeding the purchase price of the homes they were buying and pocked the excess for cash ($ 20-60K) as spending money.
Now our outrageously bizarre system is placing the burden on us, to pay for these people’s lifestyles! What about the hardworking people with children who live within their means, buy a house they can afford, don’t go out to dinner every night, don’t buy new clothes every week, and don’t vacation every month?
In a fair, perfect world, the subprime people should be thrown out of the properties and the criminally negligent greedy executives who propagated these horrendous, get-rich-quick scheme, sure-to-fail loan packages should be prosecuted and forced to pay back their $ 35-50 million salary bonus packages to the govt in order to finance the bail out scheme proposed.
How dare the govt shift the burden to the innocent taxpayers like you and I!