Or are we really bailing out the banks like we did with the Savings and Loan disaster of the mid 80's with George H.W. Bush? (remember George Keating)
2007-12-15 07:38:49 · 11 answers · asked by lobo 1 in Business & Finance ➔ Renting & Real Estate
Oops Charles Keating
2007-12-15 08:57:11 · update #1
Basically; yes. As a country; we ALWAYS reward bad/stupid behavior. Every day people do foolish things with their money, run up creditcard debt and claim "bankruptcy" because they failed to live within their means and the only difference is that this round they ran up creditcard dent, paid it off by refinancing their house, and doing it again, and again, and again until the next" greater fool" failed to showup and bail them out of their overpriced house that has no equity because of all the refis they did on it.
And by the way; we do NOT have an option. Either we "bail out the lenders" or we force lending standards to continue to tighten, keep everybody normal from having money to spend, and the economy goes into recession.
Your choice; do you want to repeat the "Roaring 20's" with the great stock market rally, followed by Black Monday, the stock market crash, and the worst recession in our history OR do you want to "bail out lenders"?
2007-12-15 07:50:31 · answer #1 · answered by Jerrold J 3 · 0⤊ 0⤋
Your memory is weak, since the man involved was Lloyd Keating. Beyond that, the federal government is not bailing out any lenders. If anything, it's causing the lenders to bite their own bullet by getting agreement out of them to NOT raise interest rates on over a million ARM loans. NO federal monies are involved, and any loss incurred will fall to the lenders and their investors.
2007-12-15 08:30:29 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
I'm not joking when I say I'm working two jobs to keep body and soul together. In 4 years I'll pay off a short term construction loan and then things will be less tight. But right now.... My property taxes went up from 600 to 3000 in 5 years, making my mortgage go up an additional 200+ a month. But I'm still managing to pay it (sometimes late, sometimes in two payments, but I do it). No frills life=== no eating out, no new clothes, no movies, no vacations etc etc.... my only 'luxuries' are DSL/Cable. And electricity. And food. It never ever dawned on me to expect the government to help me.
2016-05-24 02:34:18 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Yes. The majority of people that are being helped are people that shouldn't have a taken a loan out on that big of a house in the first place. I feel sorry for the single mother with four kids, but I don't think that's most of these people.
It's not a human right to own a house, but the predatory lenders make it sooooo. . . . easy.
2007-12-15 08:19:09 · answer #4 · answered by Stephen 1 · 0⤊ 0⤋
the 'yellow , sky is falling' media would have u believe the government is 'bailing out home owners and banks' together.
the reality is less than 1% of all mortgages are affected by this 'bail out' AND there is no government (ours) money involved.
No this isn't the SavingLoans Scam of the 80's.
what is happening is an adjustment of not foreclosed loans but of loans that can be adjusted to a fixed rate. the people who will feel this most are the working folks who invest in USA property as a stable income form.
You want to see a real blood letting - wait till people get tired of Slavery from their credit slave cards and the preditory actions.
that is going to be major Adjustment.
2007-12-15 07:56:40 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Oh sure, the fat cats get to make money off of people losing their American Dream. Remember, George Bush's' brother Neil owned one of those savings & loans that went into receivership (bailed out by the FDIC) in the late 80's. One cheating loser after another, those Bush boys.
2007-12-15 08:33:28 · answer #6 · answered by marie 7 · 0⤊ 0⤋
Who bailing out the lenders? Its a voluntary program for lenders to restructure loans. There's no mandate and no federal funds. Not at all like the S&L situation.
2007-12-15 09:06:47 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Seems so. I worked for a guy who scammed me as an employee, along with his clients. I tried to take him to the labor board, i had six claims, but the guy was from Afghanistan, and threatened to kill my sons. He owes me a total of $12,500. the jerk. I don't know, but someday fair has got to be fair in America. Many homeowners didn't know they were taking an ammortization loan, they were scammed, but why cant the govt go after the creep who brought it all about? He isn't even a citizen but is screwing our country. what a shame
2007-12-15 07:45:58 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I remember thinking that the 0% financing was a house of cards. It allows people to buy a house that they won't be able to afford when the rates go up.
2007-12-15 07:44:25 · answer #9 · answered by WENDYCAT 5 · 0⤊ 0⤋
In this case, the government is bailing out homeowners. The bank would make more money if their rates could adjust and trigger higher payments.
2007-12-15 07:45:08 · answer #10 · answered by Matt K 4 · 0⤊ 3⤋