Gets to shell out an estimated $3600 apiece to bail out the ignorant & incompetent people who GAVE out, and APPLIED for loans that they had no right having! Take the leaders of Fannie/Freddie and all of those other banking firms and suck every penny out of them and make THEM bail us out--then let them rot in jail!! Then take the homes back from people who had no right purchasing them because they have no income to support their purchase from the get-go!!!! I am patriotic, but it is not MY duty to bear the cost of total assenine purchases by people who knew from the very BEGINNING that they couldn't afford it!
OK libs, come out in full force--I expect nothing less. Once again the hard working people have to bail out the poor people! I bet Biden thinks this is great!
The people CAN afford the mortgage payments at the sub prime level they signed up for. What they can't afford is the premium interest rate that kicks in later. You can pretty much bet that most people enrolled in those programs are unfamiliar with compound interest and mortgage calculations so they were convinced by predatory mortgage salesmen that they could indeed afford to own their own home.
I'm equally sure that most of these sharks knew that the mortgagor would foreclose on many of these poor families shortly after the higher rate kicked in. The whole scheme collapsed because the bottom fell out of the housing market. It was no longer profitable for lenders to foreclose, kick the people out, sell their house and pocked all money owing plus hefty penalties.
The bailout is for rich mortgage lenders. The people losing their homes are the victims.
We're all Socialists now.
Simply put, this week has demonstrated a key point: when the going gets tough, the Republicans become socialists:
If you are a fan of irony, consider this: The conservative movement has utterly hated FDR, and his New Deal programs like Medicaid, Social Security, FDIC, Fannie Mae (1938), and the SEC for nearly 80 years. And for the past 8 years, a conservative was in the White House, with a very conservative agenda. For something like 16 of the past 18 years, the conservative dominated GOP has controlled Congress. Those are the facts.
We now see that the grand experiment of deregulation has ended, and ended badly. The deregulation movement is now an historical footnote, just another interest group, and once in power they turned into socialists. Indeed, judging by the actions of the conservatives in power, and not the empty rhetoric that comes out of think tanks, the conservative movement has effectively turned the United States into a massive Socialist state, an appendage of Communist Russia, China and Venezuela.
Clyde--have you ever heard of the phrase "You can't squeeze blood from a turnip?" If a person can't make their house payment, what makes you think they'll be able to afford any balance that is due???
Listen guys, this wasn't the little guy who couldn't afford the price of a home, it was this administrations way to hold up an economy that was going o fail. Never in history has so much wealth been pissed away by a group of politicians who pulled every check and balance our of the market place to prop up this economic mess until after GWB left office and gave the GOP a good shot at the white house. They threw out the normal 1 to 15 borrowing standard and pushed it up to 40 and let the banks go wild putting people in homes who didn't have a chance to pay for them. they knew by the time the faulted, the elecction would be over and someboody else would take the heat. They can't afford to have any more people on SS and Medicare, so they put Chrs Cox from GS in charge of the SECC and they lifted rules to protect investors that were placed after 1929 to make sure this wouldn't happen again, and let the hedge funds short the hell out of good companies, taking your 401k coontributions so you couldn't add to the problems they couldn't fix. If your not retird now, you won't be for a long ,long time. 3600 a head is cheap for what these b--tards did to great companies and the jobs that went with them. Not saying these companies didn't have a lot of trouble, but shorting them out of existance and robbing the shareholders of eqiuty is unexcusable. the Fed should go to jail. It was Bush's responsiblilty to protect the country from all aspects, not just physical theats. Lock them all up.
Shock, I see your points, but how do you figure that the "little guy" is not at least partially responsible? They are the ones who went out and purchased a house that was way beyond their means--and the idiots at the banks were the ones that loaned it! IMO, it's a lot like people who go out and max out a credit card, then apply for another one and max it out, and another, and another--then file for bankruptcy! It shouldn't be allowed, and I'm glad the laws on filing for bankruptcy have been toughened.
Fizmo, I'm a lib but in this case I think that practicality has to trump ideology.
The temporary ban on short selling may be a mistake. Shorts recognize problems before everyone else and help curtail inflated share prices. They brought down the share prices for financials because the prices deserved to be brought down. If it had been possible to short real estate then the real estate bubble may have been avoided and we would not be in this freaking mess. (Note: I NEVER short, too risky for me).
As for the bailout: the damage has been done. The emergency exists and US financial markets cannot be allowed to fail. If the government can buy these junk mortgages cheap enough it may even make money or break even. The devil is in the details but nobody is saying what they are yet.
If this thing turns into a $trillion bailout then the entire G8 should probably contribute because a failure of the US financial markets would devastate the world economy. How's that for a weird idea? It would probably never fly because voters in other G8 countries are still ticked about Iraq.
The takeover of Fanny and Freddy and the AIG loan/partial takeover were necessary but (hopefully) temporary steps. They were huge news a few days ago. Now they are just details.
If this thing doesn't work then we are all screwed.
From an investment perspective, I am considering taking advantage of any market pops to increase my cash allocation from 20% to 35%.
Wise move on going to cash on a larger percentage of your portfolio IMO. I sold some stuff yesterday and will continue to sell on strength--this thing is far from over. As soon as they lift the ban on short selling, whether it be next month or in November, the shorts will attack the financials and drive them back down again.
What are you doing tonight? I agree 110%. People should be prosecuted for this and maybe it will happen someday. As for all these people walking away from these loans, they should have to forfeit what ever other assets they have ( just seize them ) Leave them $2000.00 no more. Some how I think there is a chance that all concerned will eventually get their just deserves. Right now, however, we can't let this destroy the whole economic system or we are all sunk. I can't believe this could happen anywhere but the good old USA. It just shows you how far down hill liberalism has brought this country. Damn um all.
Hi Jas! It's morning here (not sure where you are)!
I'm just venting--this whole thing aggrivates the crap out of me. I know that Dems & Republicans alike are behind all of this--there's no doubt they are both equally responsible. I also realize that there are many hard working democrats that are going to equally foot the bill for these stupid mistakes. It's that population of leftist liberal moonbats that aggrivate me because we all know that they feel it's the taxpayers responsibility (patriotism) to pay for the ignorant, lazy, poor people in America! Note that I'm specific in pointing out certain people--I do not consider elderly, disabled, and people who truly cannot work as lazy, poor and ignorant--they need our help.
I find it absolutely disgusting that I donate multiples more to charitable organzations EACH year than someone like oblama has over the course of NINE years! Imagine that, Mr. Socialism himself shows his true colors--it's not about helping poor people--it's all about HIM! Screw the bastard!
I know that the government intervention was necessary, but we have completely removed all capitalism from the market at this point. I want the market to go to 15,000 just as much as the next guy, but I sure hope we learn from this and make the changes to prevent it ever again!