Why is George Bush bailing out banks? Who's gonna bail out ordinary Americans?

Question

The plan announced by President Bush Thursday to freeze interest rates on some subprime mortgage loans will do nothing to stave off foreclosure for the vast majority of families facing the loss of their homes in the coming months.
http://www.wsws.org/articles/2007/dec2007/subp-d07.shtml

Worked out between Treasury Secretary Henry Paulson and major Wall Street banks, mortgage lenders and servicers, and investment funds holding securities backed by subprime loans, the overarching aim of the Bush administration plan is to limit the losses suffered by financial giants from the meltdown of the US housing market and resulting credit crisis.

Answer 1

bush is bailing out the filthy greed-mongers who have made BILLIONS of dollars trading these HIGHLY LUCRATIVE high-interest subprime mortgages between themselves.

Now, because of ENORMOUS JOB LOSS nationwide, many people have simply been unable to pay the exhorbitant interest rates.

How hilarious that while the poor consumer was MAKING those high-interest payments, and the subprime market was making billions for pieces of filth whose whole job is shuffling paper....life is great and "the market works."

But....

....let the RISK factor kick in (people making high dollars also accept high risk as a proponent of those high dollars) and all of a sudden it's

SAVE THE BANKS! THE ECONOMY WILL COLLAPSE!! BAIL OUT THE RICH!!

It is DISGUSTING and it is NOT capitalism.

Answer 2

"The plan announced by President Bush Thursday to freeze interest rates on some subprime mortgage loans will do nothing to stave off foreclosure for the vast majority of families facing the loss of their homes in the coming months."

Are you high? The ordinary person is the one making payments on those loans!! Bush is freezing their monthly payments and preventing banks from increasing it every month!!

Answer 3

This mess began back in the 90's when the majority of Americans bought into the propaganda, that the economy was great. When in fact as we all know it was on the brink of disaster. People over extended themselves due to this. Now, in order to keep afloat, they've managed to get themselves into a mess with the subprime loans that were offered.

This plan will freeze the rates for 5 years... Meaning the interest rates won't go up, giving them time to get it together, without the worry that the house payment will go up. If the interest rate rises, the payment could go up 200.00 a month... In many instances, because of the nice and wonderful things they purchased when they couldn't afford it in the first place they now can't afford the house they bought in the 90's...

Answer 4

The price of homes were still affordable in the 90's. The housing market didn't start to climb until 2001 & kept accelerating at a crazy pace until 2005-6. People started to think it would never end, investors went crazy buying & flipping properties. Then suddenly things started to change, the market quickly plummeted before anyone realized it until it was too late. Now many people I know are stuck with these so-called "investments". It is called greed.

Answer 5

because it isn't socialism when you give money to rich people

heres how its going to go down;
the fed is going to freeze and maybe even lock the lower interest rates in on these bad loans. this may benefit the consumers a little.

then the mortgage companies are going to challenge these freezes and fix's in court on the grounds that the government cannot take their property without proper compensation (they are losing money from the lower rates after all) and on the grounds that the government only has the power to enforce contracts, not alter them.
and they will win these cases...and the federal government will have to pay them...out of OUR tax dollars.

that way everyone involved in the predatory lending and the fools that signed for such ridiculous rates are happy.

the only people that end up getting screwed are all the other taxpayers that had NOTHING to do with the whole thing!

Answer 6

For the same reason Obama didn't veto it, but instead promoted it. They are Both Puppets operated by those Special Interests that run the Government. No More RINOS ! And the House of Representatives was run by Democrats. No More Socialist Leftists ! We Love the way you Democrats credit Clinton with a balanced budget when the House of Representatives (who provide the budget) was run by Republicans and led by Newt Gingrich. The Democrats haven't given us a Budget in over 1000 days. A violation of the Law.

Answer 7

It's not a bank bailout, it is as you say a freeze on interest rates for 5 years. Most ARM's adjust annually after 2 and these subprime loans are getting ready to adjust in the only direction they can go, up. This action helps the homeowner by freezine his payment allowing him time to find another mortgage if he hasn't already crapped out his credit portfolio.

Answer 8

man there is a lot of stupid people in here.

Bush did the right thing, and it still isn't enough.
If the libs did this they would be paying for their mortgages out of tax money.
Bush freezing the rates will help the price of your house from dropping over 30%.
people who can afford what they are paying now will be ok, those who can not will foreclose.
would you rather have 500,000 foreclosures? your house would be worth next to nothing.

I think he also needs to penalize the banks who pushed the ARMs on people who could have afforded a fixed rate loans.

Mike...

Answer 9

The only thing I see wrong with the plan is that it doesn't help anyone who has already fallen behind on their current loan....

If you are behind on payments and facing forclosure now, due to predatory lending practices, you will not qualify for the loan renegotiation program....only the rate freeze.

Answer 10

Coz that's what he does? he takes care of big fat corps?
Last seven years or so, corps been having fantastic times, customer service is down to - - i -, rates are high, fire lay offs, no problems, George is there for help, it's really - - - t, it's pure - h - -, just freaking crazy? I think after this disastrous term is finally over, all corps should be investigated, for possible wrong doings and fraud ?! They need a good kick in the butt?

Regards.