Bush to bail out homeowners!

Jarod

Jarod

Well-known member
Contributor
A tale of two brothers.

One was responsable in the mid 2000's...

He purschashed a modest home with a fixed rate mortgage and never refinanced, just kept making payments. He would have liked a home like his brother who made less money than him, but he felt it was illresponsable. He made do with the more modest home and althought he wanted more he made do.

The other brother...

He pursched a big fancy home, he could not afford it, but the mortgage broker explained to him about interest only loans. The interest was still more than he wanted to pay so he pursched an ARM. After a year the value of the home went up and he took out a second mortgage to buy all fancy furnature and put in a pool...

Last month the other brother's ARM expired. The interest went from 6% to 11%. He cant afford the payments on the home. He has no equity in the home, in fact he owes more than its worth. The kids are in good schools where they are well established. He does not want to move, and cant afford to anyway, as he has no down payment.

Today Bush will bail him out! How does that make the responsable brother feel?
 
He wants to go out purchase a home that costs way more than he can afford and b!tch and whine until Bush bails him out.
 
Umm I think this line is just a distraction anyway. I feel the big govt bucks will be going to the big businesses that caused this mess and the consumers is ony a smoke screen here.
 
uscitizen said:
Umm I think this line is just a distraction anyway. I feel the big govt bucks will be going to the big businesses that caused this mess and the consumers is ony a smoke screen here.
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But the consumer will get to keep his big fancy house.
 
The best thing to do is to let the market tanker out. At least in my area, homes prices have dropped but they are still not what I would consider affordable - especially if you are a first time buyer. Any interference will keep them artifically high. Prices should back down down to 2001/early 2002 levels before I won't be infuriated about government intervention.
 
A new spin on the Big Bad Wolf... Now the house of straw is rebuilt by the President and the Wolf is put on a rope, which he will chew through over time but heck... nobody is perfect.
 
And I, urm I mean the other brother, will still live in his modest home, without the pool. While the illresponsable brother will enjoy his pool, and his kids will get the better education.
 
Jarod said:
And I, urm I mean the other brother, will still live in his modest home, without the pool. While the illresponsable brother will enjoy his pool, and his kids will get the better education.
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and who will wind up paying for that ?
I hate supporting anyone in a manner to which I am unacostomed.
 
So basically the responsable ones will pay for the illresponsable ones to enjoy the pool.
 
God it pains me to say this, "USC is right"
Bush's bailout to the idiot brother is a drop in the bucket compared to the BILLIONS GIVEN to the big banks to calm the jilted sensibilities.:clink:
 
Jarod said:
So basically the responsable ones will pay for the illresponsable ones to enjoy the pool.
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It has been the american way for many years jarod.

we will also bail out the banks and such that took the risks and basically created this mess by making the high risk loans available. And do not forget thse enablers who deregulated the banks and such and enabled this to come about in the firat place.
 
uscitizen said:
It has been the american way for many years jarod.

we will also bail out the banks and such that took the risks and basically created this mess by making the high risk loans available. And do not forget thse enablers who deregulated the banks and such and enabled this to come about in the firat place.
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BTW - This is not an example of a Free Market.
 
uscitizen said:
Umm I think this line is just a distraction anyway. I feel the big govt bucks will be going to the big businesses that caused this mess and the consumers is ony a smoke screen here.
Click to expand...

um.... they have already been doing that. Where do you think all that money "injected into the system" by the Fed has been going?

The banks trade securities for the cash the Fed injects. Something tells me they are not giving the government any of their more liquid securities.
 
LadyT said:
The best thing to do is to let the market tanker out. At least in my area, homes prices have dropped but they are still not what I would consider affordable - especially if you are a first time buyer. Any interference will keep them artifically high. Prices should back down down to 2001/early 2002 levels before I won't be infuriated about government intervention.
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This is indeed EXACTLY what should happen. Otherwise no one will learn their lesson. Unfortunately the politicians will be tripping over each other to be first in line to help those poor poor people who bought more home than they could afford. This is not to say that there are not people out there that were taken advantage of by over aggressive mortgage brokers, but in too many cases it was simply a case of buying more home than they could afford.

Honestly, how stupid do you have to be to take out an ARM when interest rates are at 40 year lows, unless of course you could afford the 30 yr fixed but chose not to. Because those individuals probably are still able to re-fi.
 
Am I in the twilight zone?

LadyT making market arguments. Jarod, I am not sure about, but I thought he was a Dem. Even USC understands that the real interest being protected here are the wealthy bankers, he just argues the conservative status quo mantra again.
 
Jarod said:
A tale of two brothers.

One was responsable in the mid 2000's...

He purschashed a modest home with a fixed rate mortgage and never refinanced, just kept making payments. He would have liked a home like his brother who made less money than him, but he felt it was illresponsable. He made do with the more modest home and althought he wanted more he made do.

The other brother...

He pursched a big fancy home, he could not afford it, but the mortgage broker explained to him about interest only loans. The interest was still more than he wanted to pay so he pursched an ARM. After a year the value of the home went up and he took out a second mortgage to buy all fancy furnature and put in a pool...

Last month the other brother's ARM expired. The interest went from 6% to 11%. He cant afford the payments on the home. He has no equity in the home, in fact he owes more than its worth. The kids are in good schools where they are well established. He does not want to move, and cant afford to anyway, as he has no down payment.

Today Bush will bail him out! How does that make the responsable brother feel?
Click to expand...

no different then giving hand outs to people who choose not to work or pay for health insurance when they are simply being lazy.
 
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