Fed trying to bail out mortgage companies

Mikeyy · #1 (**permalink**) 12-19-2007, 12:42 PM

This story is BS. First they say it is a global credit crunch. But that is a lie. Yhe U.S. is the only country I see having these troubles. And it was because of crazy lending schemes produced by these same companies.
Secondly, Why bail the mortgage company out but not the citizen losing their home? I remember when they wanted to give billions to the airline industry to help bail them out. I'll never forget Barney Frank saying."Instead of giving money directly to the Airline why not just pay for airline tickets for the American people. That way everyone gets something out of the bail out" That made pretty good sense to me.

Fed loans banks $20 billion - Yahoo! News

cnredd · #2 (**permalink**) 12-19-2007, 01:00 PM

Quote:

Originally Posted by Mikeyy

This story is BS. First they say it is a global credit crunch. But that is a lie. Yhe U.S. is the only country I see having these troubles. And it was because of crazy lending schemes produced by these same companies.
Secondly, Why bail the mortgage company out but not the citizen losing their home? I remember when they wanted to give billions to the airline industry to help bail them out. I'll never forget Barney Frank saying."Instead of giving money directly to the Airline why not just pay for airline tickets for the American people. That way everyone gets something out of the bail out" That made pretty good sense to me.

Fed loans banks $20 billion - Yahoo! News

This BS alright, but for the wrong reason...

This whole thing is about one issue...and one issue only...

PERSONAL RESPONSIBILITY...

People were buying homes WAY outside their financial range...They kept reading stories how $200K homes were becoming $400K homes and $300K homes becoming $600K homes, so they used the logic that they'd buy the largest house possible and flip it a couple of years later, but didn't think hard enough to realize they put themselvfes at risk if the housing boom didn't stay on track...

Well that's exactly what happened and now they cry "poor"...

My reponse would be no bailout for anybody...The people who brought houses rolled their own dice, and the mortgage companiews were dumb enough to give loans outside the individual's range...

Take a look at this story...They actually want you to feel SORRY for these morons...

And yes...they ARE morons...

Tapped-out family's home is at risk

Quote:

John and Grayce Coffman could lose the Fullerton home they bought in 1977 because they can't keep up with their mortgage's rising costs.

The Coffmans, who are unemployed and in their 60s, borrowed $552,300 from Countrywide Financial, the largest U.S. home lender, in the summer of 2005. Despite making about $50,000 in payments since then, they now owe more than $590,000 to Countrywide.

They, like many other consumers during the go-go days of the housing boom, tapped the rising equity in their home. They took out a loan that allowed them to make a low monthly payment, but tacked the unpaid interest onto the loan balance.

Now the Coffmans say they can't afford the minimum payment of more than $2,000 a month, which has gone up from $1,776 when they first got the loan.

And they certainly can't make the fully amortized payment of more than $4,500, which would be roughly 80 percent of their income. The Coffmans earn about $5,400 a month from Social Security and government assistance for five of their six adopted grandchildren, according to the Coffmans and their recent bank statements. (One grandchild is now an adult.)

Get that folks?...They're unemployed, they have six adopted grandchildren, and their only income is SS and government assistance...

And they had the audacity to borrow OVER 1/2 million dollars?!?!?!?!?!?!

Sorry Charlie...They did this on their own...And Countrywide was idiotic enough to let them...

They should both live with the consequences and leave my taxdollars out of it...

:

Mikeyy · #3 (**permalink**) 12-19-2007, 01:22 PM

Quote:

Originally Posted by cnredd

This BS alright, but for the wrong reason...

This whole thing is about one issue...and one issue only...

PERSONAL RESPONSIBILITY...

People were buying homes WAY outside their financial range...They kept reading stories how $200K homes were becoming $400K homes and $300K homes becoming $600K homes, so they used the logic that they'd buy the largest house possible and flip it a couple of years later, but didn't think hard enough to realize they put themselvfes at risk if the housing boom didn't stay on track...

Well that's exactly what happened and now they cry "poor"...

My reponse would be no bailout for anybody...The people who brought houses rolled their own dice, and the mortgage companiews were dumb enough to give loans outside the individual's range...

Take a look at this story...They actually want you to feel SORRY for these morons...

And yes...they ARE morons...

Tapped-out family's home is at risk

Get that folks?...They're unemployed, they have six adopted grandchildren, and their only income is SS and government assistance...

And they had the audacity to borrow OVER 1/2 million dollars?!?!?!?!?!?!

Sorry Charlie...They did this on their own...And Countrywide was idiotic enough to let them...

They should both live with the consequences and leave my taxdollars out of it...

:

I don't disagree very much with you. But in orange county california. What those folks were paying is the average home price in the area. It is also ridiculas to be priced out of your home town. I grew up here and I have lived in the midwest for the past 3 years. Now I come back and am house shopping. You can't even get in here for less the a half a million. And thats with prices down. Its hard to understand that when you live in a place that hasn't had that much growth. What if all at once all the homes in your area went up to that amount. Just the property tax alone would cost you 5000 a year. And in a way you can't blame them given the history property in this area. Those that can hold on will do fine I'm sure.

cnredd · #4 (**permalink**) 12-19-2007, 01:47 PM

Quote:

Originally Posted by Mikeyy

I don't disagree very much with you. But in orange county california. What those folks were paying is the average home price in the area. It is also ridiculas to be priced out of your home town. I grew up here and I have lived in the midwest for the past 3 years. Now I come back and am house shopping. You can't even get in here for less the a half a million. And thats with prices down. Its hard to understand that when you live in a place that hasn't had that much growth. What if all at once all the homes in your area went up to that amount. Just the property tax alone would cost you 5000 a year. And in a way you can't blame them given the history property in this area. Those that can hold on will do fine I'm sure.

Read it again...They brought the house in 1977...

They weren't BUYING the house at market price...They were TAKING EQUITY OUT of a house they already had...

Mikeyy · #5 (**permalink**) 12-19-2007, 02:28 PM

Quote:

Originally Posted by cnredd

Read it again...They brought the house in 1977...

They weren't BUYING the house at market price...They were TAKING EQUITY OUT of a house they already had...

I understand. Thats why I say I can't disagree very much with you. But I don't want to see us bail out the big guys and leave the little guys twisting in the wind. The fed gives them 20 billion. Who asked the fed for the money? Or did they volunteer it. And either way who represents the citizens in this deal.

And to add a little Bush bashing to the mix. Its funny how he gives a speech chiding folks for taking these finacial risks. When that used to be his business. His brother helped run El Doarado bank in to the ground doing the same stuff. And when George went hundreds of thousands in debt speculating. His rich friends forgave his loans.

Some people live in a different world from you and I. (That should stir you up)

cnredd · #6 (**permalink**) 12-19-2007, 02:50 PM

Quote:

Originally Posted by Mikeyy

I understand. Thats why I say I can't disagree very much with you. But I don't want to see us bail out the big guys and leave the little guys twisting in the wind. The fed gives them 20 billion. Who asked the fed for the money? Or did they volunteer it. And either way who represents the citizens in this deal.

And to add a little Bush bashing to the mix. Its funny how he gives a speech chiding folks for taking these finacial risks. When that used to be his business. His brother helped run El Doarado bank in to the ground doing the same stuff. And when George went hundreds of thousands in debt speculating. His rich friends forgave his loans.

Some people live in a different world from you and I. (That should stir you up)

I'm not on Bush's side either on this...I don't believe ANYONE should be given tax dollars to help them in trouble they caused themselves...

As I 've stated in this thread...

Quote:

"The people who brought houses rolled their own dice, and the mortgage companies were dumb enough to give loans outside the individual's range..."

"Sorry Charlie...They did this on their own...And Countrywide was idiotic enough to let them...

They should both live with the consequences and leave my taxdollars out of it"

I wouldn't bail out any company dumb enough to give loans to stupid people...

Bush wants to help the dumb banks...The Democrats want to help the dumb homeowners...

I want neither...

Mikeyy · #7 (**permalink**) 12-19-2007, 02:59 PM

Quote:

Originally Posted by cnredd

I'm not on Bush's side either on this...I don't believe ANYONE should be given tax dollars to help them in trouble they caused themselves...

As I 've stated in this thread...

I wouldn't bail out any company dumb enough to give loans to stupid people...

Bush wants to help the dumb banks...The Democrats want to help the dumb homeowners...

I want neither...

And I love the way they try and convince people this is a global issue to justify there actions. This time its our own situation. Everybody elses economies are doing fine. Someone needs to pull their noggin out of their colon.

cnredd · #8 (**permalink**) 12-19-2007, 03:05 PM

Quote:

Originally Posted by Mikeyy

And I love the way they try and convince people this is a global issue to justify there actions. This time its our own situation. Everybody elses economies are doing fine. Someone needs to pull their noggin out of their colon.

I agree EXCEPT that "Everybody elses economies are doing fine" part...

The US has consitantly shown a +4% economic growth (and a few +5% quarters) for the last few years...Most European countries' economies are squeaking by at 2%...

Mikeyy · #9 (**permalink**) 12-19-2007, 03:17 PM

Quote:

Originally Posted by cnredd

I agree EXCEPT that "Everybody elses economies are doing fine" part...

The US has consitantly shown a +4% economic growth (and a few +5% quarters) for the last few years...Most European countries' economies are squeaking by at 2%...

Apples and Oranges. They have declining population growth and not alot of development. If you spend time on the other side of the earth their rockin. Australia suffered during the last capital crunch in the 80's. But not now. At that time Japanese banks were offering non doc loans of 1%. They got bit in the ass for it and wised up.

foundit66 · #10 (**permalink**) 01-16-2008, 04:11 PM

Quote:

Originally Posted by cnredd

Sorry Charlie...They did this on their own...And Countrywide was idiotic enough to let them...
They should both live with the consequences and leave my taxdollars out of it...

:

Quote:

Originally Posted by cnredd

I wouldn't bail out any company dumb enough to give loans to stupid people...
Bush wants to help the dumb banks...The Democrats want to help the dumb homeowners...
I want neither...

I agree for the most part. (one minor exception)
The only leeway I've got would be in the form of impact upon the U.S. economy. If it were too severe, maybe we should think about lessening the impact.
("If" being an issue which obviously warrants further discussion and should not be assumed ...)

Furthermore, if we are to "bail out" these people, doesn't that show that we have legitimate grounds for getting more involved in mortgage REGULATION to help prevent such a thing?
If we're going to ignore "free market" when something goes down-hill and invoke massive government involvement AFTER the fact, doesn't that automatically justify getting more involved with mortgage regulation to prevent such a thing?

One of my big pet peeves is how the "credit" industry sometimes abandons intelligent and moral practices in order to give too much financial credit to customers who don't deserve the amount they're given.
And that obviously cuts two ways, as the consumer sometimes lacks the brains to handle it.

Beyond that, I just wanted to see those two quotes above repeated again...

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