Congress has bailout plan
POSTED BY: SignyM
UPDATED: Tuesday, April 8, 2025 20:49
VIEWED: 3660
PAGE 3 of 4
Quote:
Originally posted by Kirkules:
It's going to help responsible homeowners that could afford to keep their homes with better loan terms, primarily by getting them into fixed rate loans.
So if someone can't pay their mortgage they are irresponsonle? Cause thats insulting.
I am on The List. We are The Forsaken and we aim to burn!
"We don't fear the reaper"
FORSAKEN original
“I like your Christ, I do not like your Christians. Your Christians are so unlike your Christ.” Mahatma Gandhi
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Quote:Of course they are; to not see the sharks bite your legs means you deserve to die.
Originally posted by FutureMrsFIllion:
So if someone can't pay their mortgage they are irresponsible? Cause that's insulting.
Chrisisall
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Hello,
As someone who is riding the fine line of being able to pay my own mortgage, I can tell you that I have acted irresponsibly.
Having sworn to myself that I would never purchase a home by using an ARM (Adjustable Rate Mortgage) I was convinced to do so by my spouse. Eager to own a home, she colluded with my mortgage broker to assure me that after faithfully making payments for a year, I would be able to refinance to a better rate, and a fixed one at that.
Thus bolstered with confidence, I ignored my own good sense and signed on the dotted line. And then the real estate market crashed, and my home is worth about fifteen thousand less than I bought it for. So I can not refinance, the ARM is up, and my struggles have commenced.
I was irresponsible. I knew better. I did it anyway, and I was wrong.
Still... I'd hate to lose my home. Every month sees me undertake creative re-budgeting in order to preserve my ownership. How long, I wonder, can I hope to keep it up? Every month gets harder, and Christmas will be bare.
So, is it insulting to be told I am irresponsible for not being able to make my mortgage payments? Yes, it is insulting. It is insulting in the same way as calling a fat person fat, or a stupid person stupid. It's insulting because it's true, and the shame of that truth burns.
However, if you want to call it impolite, I will agree there as well.
--Anthony
"Liberty must not be purchased at the cost of Humanity." --Captain Robert Henner
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AnthonyT
If the bailout money was going to the people who were at best misled and at worst defrauded in their loans I would be very much with the plan. But it's not, you see, at least not most of it. It's going to make good on the fat-cats' investments. And that really pisses me off. 
You believed the house (no - HOME) to be a worthy investment. There's no shame in that. I wish you and your wife the best.
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Silence is consent.
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Well, I am losing my house. But, I acted responsibly. I spent 17 years following my husband from duty station to duty station. I was faithful and did everything society says I was supposed to do. We moved to this area when he retired and bought a house with a VA loan. Our plan was to use his retirement money to pay the mortgage and to work and continue to save. Well 6 months after closing he moved in with a skank, took all the savings and left me in a house with 2 teenagers and a house payment I could not afford, in a town with little to no real estate market. So here I sit in a run down house I can not afford to finish remodelling and can not sell and, more importantly, can't pay for. So is it insulting to be told I am irresponsible. Extremely. It is also completely wrong.
ETA: I also do not have an ARM and would never purchase anything with an adjustable rate.
I am on The List. We are The Forsaken and we aim to burn!
"We don't fear the reaper"
FORSAKEN original
“I like your Christ, I do not like your Christians. Your Christians are so unlike your Christ.” Mahatma Gandhi
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Best of luck with your home, Tony. With a little budgeting & determination, I'm confident you'll be okay.
Chrisisall
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So, the banks did the wrong thing by being undercapitalized, they sold speculative bonds, and the regulators were asleep at the switch, worse they were aiding and abetting. And this is my problem --- how ?
I'll be checking back for an answer to this.
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Silence is consent.
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Quote:
Originally posted by rue:
So, the banks did the wrong thing by being undercapitalized, they sold speculative bonds, and the regulators were asleep at the switch, worse they were aiding and abetting. And this is my problem --- how ?
I'll be checking back for an answer to this.
The reason it's your "problem now" is that the Fed was starting to see signs of panic in the financial markets. If this plan hadn't been announced by Friday, it's possible that the stock market would have crashed on Friday followed by a run on the banks and riots by Monday or Tuesday. That's how bad the Fed thinks this problem is.
The securities in question are backed by home mortgages and the mortgages are backed by the properties mortgaged. One of the reasons these securities aren't worth zero like a stock in a bankrupt company is that homes have intrinsic value(like gold) unlike many financial instruments. Many of the banks actually believed or deluded themselves into believing these securities were very safe. Mortgages have always been a very safe investment for banks in the past because people only give up their houses as a last resort. Plus, back when 20% down payments were required the banks had a cushion even if they were forced to foreclose. The banks actually believed they were well capitalised with high quality mortgages, but it turns out if you give people a home loan with zero down payment, homeowners have little to lose by walking away from their homes when prices fall and the banks don't have the down payment to cover their losses.
I agree with you that we shouldn't have to pay for others mistakes, but unfortunately the banks did nothing illegal in most cases and we only have ourselves to blame because we do live in a country with a representative form of government and everyone in Washington since Carter has some culpability in this.
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"The reason it's your "problem now" is that the Fed was starting to see signs of panic in the financial markets. If this plan hadn't been announced by Friday, it's possible that the stock market would have crashed on Friday followed by a run on the banks and riots by Monday or Tuesday."
And ---- so what ? If the banks fail the government has to print money anyway - FDIC, remember ? - except it goes directly to the people. And not some version of bailout tinkle-on - I mean, trickle down. Or just let people keep their homes for free - it would be cheaper, less than half the current price-tag. And a market crash is long overdue b/c market value has been long based on speculation.
The riots are a dramatic effect you added. I can see long lines at the bank.
Still ain't my problem.
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Quote:
Originally posted by rue:
"The reason it's your "problem now" is that the Fed was starting to see signs of panic in the financial markets. If this plan hadn't been announced by Friday, it's possible that the stock market would have crashed on Friday followed by a run on the banks and riots by Monday or Tuesday."
And ---- so what ? If the banks fail the government has to print money anyway - FDIC, remember ? - except it goes directly to the people. And not some version of bailout tinkle-on - I mean, trickle down. Or just let people keep their homes for free - it would be cheaper. And a market crash is long overdue b/c market value has been long based on speculation.
The riots are a dramatic effect you added. I can see long lines at the bank.
Still ain't my problem.
***************************************************************
Silence is consent.
Exactly.
My feelings of sympathy for the banks and lawmakers who knowingly walked into this mine field without a minesweeper in front of them is the same as their sympathy for me if I fall on hard times. In other words, "Fuck 'em." They dug themselves in, and I could give two shits about how hard they get hit by the shitstorm they created.
Mike
This world is a comedy for those who think, and a tragedy for those who feel.
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