Why should we bail out borrowers of Pollyanna Sub-prime mortgages???

Question

Yeah, I know, people are saying, "Oh, these poor innocent people were duped" ad nauseum. What a bunch of BS. These people were JUST AS GREEDY AS THE WALL STREET COMPANIES THAT FUNDED THESE LOANS. They wanted that house no matter what. And they knew they could face higher payments in the future. But they went on the assumption that home prices would continue to rise 10+% a year and they could dump the house for a profit if they could no longer afford the payments. Soon we'll be subjected to all the Congressional hearings with all the droopy-eyed liberals like Chuckie Schumer blaming the Wall Street fatcats, etc. We'll get to watch Joey Biden listen to himself talk for hours on end. And make no mistake, these Wall Streets guys should NOT be bailed out. They knew EXACTLY what they were doing. They talk tough about "free-markets" and no government interference when times are good. But when the sh!t hits the fan, they want Mommy Government to bail their sorry asses out.

Answer 1

I know that what "they" are SAYING is that they will bail out the borrowers, but don't be fooled for a minute that this is what it's about.

Bailing out a mass of defaulting borrowers is a bailout of the lenders. That's what this is all about.

If enough people default on their mortgages, it will hurt profitability so badly that the CEO's of these lenders won't get their million dollar year-end bonues, and you know what that means?

No campaign donations this year.

Can't be having that. Gotta bail out them po' borrowers, don't we.

Answer 2

I don't think the government is going to bail out these people. I think that they are going to revise some loan programs that will allow some to refinance their homes without losing their homes. It does not mean the government is going to let them go scott free and payoff their balances. One of the things the government mentioned is allowing FHA to get involved to try to refi some of the loans as long as the customers were current on their payments before their arm rate adjusted. Something needs to be done to adjust the mortgage crisis because unfortunately some of these programs that the government allowed to happen got out of control and it has effected mortgage programs for everyone else unfortunately. I think the FHA program will be good but just simply stating that we (Pres) are to make these changes is not sufficient. It takes time to change fed guidelines with programs such as FHA and they need people working 24/7 to get these initiatives started. I find it ironic that the Pres blames 100% financing programs yet is wanting FHA to offer a 100% product.

Answer 3

The lenders who raked in
The borrowers (too lame to read or understand ARMs)

Should be required to refi them into 40 yr fixed mortgages .

The ARM thing was nonsense , and if they are required to refi to 40s ,

Then the taxpayers will Not be stuck because the lenders will get their $$$ back ,
Just Not at the uber high rate they were trying to suck up on the ARMs when they adjusted .

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Answer 4

we shouldn't it will affect evrey one in the futue you are great money managers == same way they should raise the % of money that a lender can take out of your check == i say 100% == these folks should learn to fish or cut bait!!!