Time for rescue

So which is it, 300 billion or 1.7 billion? This is the kind of crappy journalism that pisses me off. Quit giving me both sides of the story and give me the real one. Research it thoroughly and give me your best idea of how much this is going to cost. We gave Bear Stearns 30 billion dollars to bailout their fat-cat investors, but Bush and his Republican allies balk at bailing out home-owners. Republican "values" in a nutshell.

Making bad financial choices should not be the governments problems. Buying a house you can't afford is not the goernments problem. Keeping up with the Jones is not the governments problem. Learning lifes lessons the hard way priceless.

If we are going to offer assistance for people that made poor decisions, then there should also be a plan to offer a break for those who did NOT make poor decisions.

How about refinanced, lower rates for everyone?

Now it doesn't get any more fair than that.

But no one wants to discuss that. Let's just put a larger burden on people that can afford it.

I love the liberal mentality...fair is what we need. Just not for everyone.

People should NOT be rewarded for making ridiculous financial decisions.

First, the government forces
banks to lend
to people who do not qualify
for mortgages
(bad credit, low income, and so on)--
then, when these people default
on loans they should not have gotten,
the government bails them out--
socialism by any other name,
with the same moronic results....

I agree with all the other comments.$1.7 billion? I see where others estimate the potential taxpayer losses as high as $27 billion. And how about a comment or two on Rep. Frank's message to lenders: "either do this or suffer the consequences of more regulation"?

The only way to correct the housing buble is for people to lose their house and then prices will come down. If the government steps in and rescue people with loans they can no longer pay, then this will keep house cost high. Let banks foreclosure or let the buyers short sell their houses. This is the only way that the market will correct itself.

I did not make bac decisions and am current in my mortgage. How about giving me the same brake as the these deadbeats. I'll take a reduction of 60% of my mortgage balance!!!

NO Bailouts !

Market forces will readjust the housing market to where it rightfully belongs.

Sorry for the knotheads who overbought.

When I bought my house, my bank (also my employer at the time) said that I could afford to buy a $110,000 house, but I did my homework and disagreed. I bought a $70,000 house instead. With BGE, gas prices and RE taxes going up and wages staying still, I am glad I did. I have a fixed rate,$60,000 in equity,$0 in unsecured debt and my mortgage payment is current.

The bank can only tell you what you qualify for, NOT what you can afford.

M. Johnson you are absolutely right and I compliment you on your intelligence and common sense. I suspect you might be young and if so double my compliment. You are a responsible individual who like most people thought things out before buying something. If more people did this than we wouldn't be talking about foreclosures and bail outs. I married young and was smart enough to realize that there was only so much money coming into my house. It is easy to "want" but takes courage and intelligence to realize what you "want" isn't what is best for you. People need to put what I "need" way in front of what I "want." I bet you in a few years your $70,000.00 purchase will allow you to move up with a new home. Keep up with your present thinking, it will benefit you in the future.

BigWillie wrote:

The only way to correct the housing buble is for people to lose their house and then prices will come down. If the government steps in and rescue people with loans they can no longer pay, then this will keep house cost high. Let banks foreclosure or let the buyers short sell their houses. This is the only way that the market will correct itself.

But if it happens to be Bear Stearns then let's give them a 30 billion dollar taxpayer funded bailout. The right wing Republicans on this site are such hypocrites.

flyingcow wrote:

First, the government forces
banks to lend
to people who do not qualify
for mortgages
(bad credit, low income, and so on)--
then, when these people default
on loans they should not have gotten,
the government bails them out--
socialism by any other name,
with the same moronic results....

Did you expect anything else from Bush?

Stuck in Md wrote:

I did not make bac decisions and am current in my mortgage. How about giving me the same brake as the these deadbeats. I'll take a reduction of 60% of my mortgage balance!!!

I own a business. How about giving me 30 billion.

Lets face the truth. The government had no reason to step in and prevent this. After all, their budgets are based on property taxes and income taxes. When the first real estate appraisers were complaining about being pressured to make inflated appraisals no one was listening. New homes sales meant more taxes and more money for the government to spend. The government now has to protect their ass in the name of being fair.

Screw that. If you went into this and got the short end of the stick, then you learned a lesson. Banks will learn to better vet borrowers and to not loan more than 80% of home value, and some speculators got what was coming to them.

Anyone who didn't see this coming was blind.

As for Bear Stearns, I believe it was a low interest loan, not a gift. If you want to offer the banks a low interest loan that can be passed onto the defaulters that would have a chance to pay it back, then do so, but no money to those who lied to get in on the gold mine.

Stack wrote:

<quoted text>
Did you expect anything else from Bush?

I'm no Bush fan.
Fact is,
the Community Reinvestment Act (CRA) was a Clinton program.
It forced banks to lend to unqualified (mostly minority)borrowers, and to under-qualified borrowers....

Tbird wrote:

<quoted text>
But if it happens to be Bear Stearns then let's give them a 30 billion dollar taxpayer funded bailout. The right wing Republicans on this site are such hypocrites.

I have to agree. Frankly, what should be done is that all homes are reappraised (in default or not), and the new mortgages are adjusted to show the TRUE VALUE of the home in question.

funny, the underlying theme is that government IS the problem. didn't expect to see that here, i guess people are really starting to figure that out.