Hey neighbor, need help with that mortgage?

[kernel crash]

So lets see. You go out and buy more house than you can afford. You have little or no money to put down. You get a mortgage you won't be able to afford in a couple of years. Yeah your living the good life. Fast forward to today. Now your mortgage is going up three, four, five hundred dollars a month. Help me Mr. Wizard. (Or George Bush or Uncle Sam or Hillary or Nancy...) Is it me or is there something wrong with this picture. In the real world, not the crazy times we live in today, shouldn't these people be allowed to go down in FLAMES!!! Guess not. You know the guy down the street that moved into that McMansion a few years ago. Looks like were going to help him out with his mortgage for a few years. Is this what a Hillary administration is going to look like?

[Mr_Cheeze]

I'm not sure if this is the rant of a mad man or a madman.

Might help if you cited a reference so we don't all think you're going to be living out of a shopping cart in a month.

[kernel crash]

I'm not sure if this is the rant of a mad man or a madman.

Might help if you cited a reference so we don't all think you're going to be living out of a shopping cart in a month.

No that's not a story about me or my situation but rather a commentary about people acting irresponsibly and now look for us to bail them out. I have a small home/mortgage and live well within my means.

[Mr_Cheeze]

That's what I thought. It just seemed to come from out of nowhere.

[Slider]

When the Reagan deregulation of the Savings and Loan industry set the last real estate boom, and inevitable bust, in motion, everyone walked from their mortgages. That led to the largest bailout in US history, of many badly and criminally managed S and L's. The total, still being paid by taxpayers, is maybe $300billion.

The bailout figure doesn't reflect where that money went. The fire-sale of assets went to the well-connected, including Bush family members.

Money spent helping subprime mortgage holders in trouble is a hedge against a lot more debt that would arise when we instead wait and bail out the mortgage holders. It also puts money into the hands of homeowners instead of, say, the son of a President, as happened last time around.

Both deals suck for the taxpayers, but political realities being what they are, I'll take the homeowner bailout over a later industry bailout. There may be better ways, but real estate is a prime driver of our economy, and there's huge waste involved if the industry totally collapses. Whatever limits the total cost to the taxpayer works for me.

Slider

[Mr_Cheeze]

Maybe it's time to re-regulate the S&L's. There wouldn't be a crisis if the bad loans, most of which the banks knew would eventually become troublesome for the holders, were never given out. And maybe the real estate market wouldn't be in such a crunch. Lots of new homes being built for the lower end of the middle class, and these are the folks getting into trouble.

Unfortunately, I think it's probably a slim chance to re-regulate after being deregulated. I'm for less government in most cases, but this is a good example of where I think oversight is needed. The amount of usury being foisted upon people for the want of owning property is immoral.

[Slider]

Maybe it's time to re-regulate the S&L's. There wouldn't be a crisis if the bad loans, most of which the banks knew would eventually become troublesome for the holders, were never given out. And maybe the real estate market wouldn't be in such a crunch. Lots of new homes being built for the lower end of the middle class, and these are the folks getting into trouble.

Unfortunately, I think it's probably a slim chance to re-regulate after being deregulated. I'm for less government in most cases, but this is a good example of where I think oversight is needed. The amount of usury being foisted upon people for the want of owning property is immoral.

It wasn't the S and Ls driving things this time around. And not rogue smaller banks, like Dime Savings, who played a big local role in the last boom. I was selling real estate back then, and sold lots of houses with the help of their no-doc loans. Hey, it was legal, and it was their money to do with what they wanted.

That is the problem. There was this big cash cow, and everyone wanted a piece. This time, all the major banks invested heavily, and you gotta wonder who was drawing the bigger economic picture for them. Once the inflated appraisals start getting a foothold, it is only a matter of time before the bottom falls out, since there are no buyers actually paying the recorded prices. Short term, the balance sheets look great, but anyone past Economics 101 knew the end would come, and there would be lots of bags to be left holding.

It is an industry that cries our for LOTS of regulation. From loan terms, to cash reserve requirements, to severe sentences for appraisal fraud. Without those, on its own, real estate can trigger a recession. Might be happening now, and that is why everyone is scrambling to find a fix.

Slider

[kernel crash]

Bush's latest idea to freeze the rates for "some" homeowners may stop the bleeding for a little while, but eventually they will have to pay the piper. So maybe this is just a temporary measure so that someone else will have to deal with it. Meanwhile if you got your house with no money down and your house value has dropped, you can't refinance anyway. A lot of greed on display here and a lot of people who never read the fine print. On a similar note what about the credit card companies charging some customers interest rate in the 20 plus percent range. Think they'll ever see a zero balance? That's one of my all time pet peeves. If I were the President for just one day I would make rates like that illegal.

[noreaster]

Is this what a Hillary administration is going to look like?

I love the logic on this one. Bush talks about bailing out homeowners, and suddenly it's what a Hillary administration looks like. It's logic like this that got us the current administration and its wrath of destruction on so many levels... like the mortgage crisis! Bushie, what was that toll-free number, again?

I'll take the homeowner bailout over a later industry bailout.

Right on. I hope we don't see any bailout, but if you have the choice between bailing out homeowners, or lenders who were using shady practices, I see it this way. Homeowners mostly believe that banks won't lend out what they don't think borrowers can repay (how could they stay in business? the thinking goes). True, buyers should understand the terms, but people in this country are taught from birth that owning a home is your ultimate goal. Plus, they aren't financial professionals, and they generally trust banks. Lenders however, have to live within rules and regulations. They are in the business of lending, and as a result should understand the risks they've taken to offer these "incredible deals." There is inherent risk in business. The biz owner's personal assets are shielded. You can always start another company if you go out of business–it's hard to start another life.

[kernel crash]

I love the logic on this one. Bush talks about bailing out homeowners, and suddenly it's what a Hillary administration looks like. It's logic like this that got us the current administration and its wrath of destruction on so many levels... like the mortgage crisis! Bushie, what was that toll-free number, again?


Nothing wrong with the logic if you've been paying attention. Hillary and the rest of the candidates are falling all over themselves trying to pitch their versions of a bailout plan. Forget Bush. He'll be long gone while this mess is playing out. Hence my inquiry as to whether this is what a Hillary administration will look like.

[Mr_Cheeze]

Nothing wrong with the logic if you've been paying attention...

Republican, Democrat... what's the difference these days. Neither party knows the definition of fiscal conservatism.