Isn't it interesting that mortgage bail out was targeted to help wealth investors more than the home owners?

Answer 1

Why are you even surprised?
This is what the Republicans mean when they say they love free trade....it means you pay, not the corporations that messed up.
This is the sort of corporate welfare they eat up.
They don't regulate to start with, because they think banks will regulate themselves, then the government has to rescue the abusive corporate structure that caused the problem.
The borrower still pays, but there is no incentive to change the regulations in the first place if there is no punishment for the corporate banks that got them there.

The banks were banking on the outrageous increase in home prices to allow the investors to pay the sometimes double or triple original interest rates. When it didn't, that's when the trouble came as they could not re write the loans for the increased amounts. Now they had paper with no value since the value of the security (the home) did not increase enough to warrant the new, re written loan.
The banks are better off getting the old interest rates and not owning the devalued homes, than having the non profitable homes not giving them any income at all. They weren't going to lose money unless they are left holding the home. This still makes money for the lending org. Just not as much as they anticipated, which isn't a big deal unless they've played fast and loose with projected earnings. Which they may have, but thats a different story.

Answer 2

It's amazing that people are still blaming people... we are taught early on that owning your own home is where it's at.. "why rent when anybody can get a morgtage" was the buzz phrase everywhere 2-3 years ago.. bottom line, deregulation allowed this to take place, people who are already on the bottom end of our economic ladder are more vulnerable to scams, and the non fixed rate Home Loan scam was obvious to everyone of the lenders that made millions off of it for the last 6 years... Just Like Renta Center's and Aarons sell sub par crap for 300% profit.. people with poor credit are easy marks.. and once again in our Darwinian capitalist filth system, the little guy is to blame for being the little guy... WTF?

Answer 3

No, only typical & predictable.

The Bush/Cheney big campaign donors (mortgage bankers) got involved in speculative, big risk strategies & the last thing they need is a multitude of unsold residential properties.

So, in steps the Republicans for the bail out.

It's interesting to think that you consider the government's role to help the little home owner!

Answer 4

Why don't people ever ask and wonder and inquire as to why this all occurred in the first place - what is the true root of the problem?

There is no doubt that greed, capitalism and politics combined in the current climate of the US fuel corruption.

Why is it that people have willingly sacrificed their freedom, their duty to question and correct what is wrong in their nation for the sake of "feeling secure" and thus sell out to a corrupt government?

I guess people truly get the government they deserve.

Answer 5

'Montgomery County's effort to curb discrimination in mortgage lending through harsh penalties against alleged predators ran into two major obstacles yesterday. A state judge issued a temporary injunction to halt the law's enforcement for four months, and the Bush administration said the measure usurps federal authority.'

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/07/AR2006030701737.html

Answer 6

Please Explain!!! The so called wealth investors I assume you mean the banks and mortgage co. Well they are bellying up because of all the foreclosures. Actually the will be getting less interest for five years rather than getting none and the sub-prime homeowner would get to keep their home by way of the interest not tripling and actually getting equity in their home.
It is a WIN-WIN!!!!!!

Answer 7

It was originally, but it looks like the government is coming around. And any bill that gets through Congress will offer relief to far more people than the president's version.

Answer 8

Why help people who keep making bad decisions with their lives? Where is the personal responsibility? Momma always told me "if you screw up learn from it and move on." If there will always be a bailout, nobody ever learns.

Answer 9

The Bush administration is always concerned with the well being of the rich. Why can't the government ever let the wealthy fail when they make bad economic decisions? It makes those who try to live within their means fools.

Answer 10

Hillary claims Bush proposal doesn't go far enough. Maybe your confused with her proposal, all Bush's plan does is freeze the rate that was initially offered, it stops the bait and switch put on by the S&L's. Which should be illegal to begin with.