Why is Bush proposing a mortgage bailout?

<div class='quotetop'>QUOTE(Boulder Bum @ Sep 1 2007, 07:04 PM) [snapback]505574[/snapback]</div>

I thought the name of this forum was PriusChat? Now I see it has become the Bush Bashing Headquarters. Lets get back on the Forum guidelines and talk Prius!!!!

 

bush or not, i'd bash someone who was trying to further their own interests by bailing people out of their stupid decisions, further destroying any financial responsibility/awareness the american public may have.

what about those of us who just seem to have constant crappy circumstances? the government doesn't give a crap about us. why? because we make reasonable decisions based on reasonable good faith about the future. (which we no longer have.) we spend minimally and bailing us out won't keep us financially afloat to overspend again. well, unless you count overspending at hospitals...

my sister and her husband just bought a house with two mortgages. two mortgages and they haven't even moved in yet. save for a down payment? why would we do that when we can move in next month? same idea...

 

<div class='quotetop'>QUOTE(Sliderule @ Sep 2 2007, 07:50 PM) [snapback]506121[/snapback]</div>

Yeah that rule applies in quite a few places on priuschat.com but not here at FHoP. This is a place to talk about anything, the First Amendment is your friend. It's too bad that so many here are stricken with BDS, (Bush Derangement Syndrome) so that a normally good topic such as this is ruined by angry, intolerant, <strike>knee</strike>-jerk reactions which often occur with simple mention of his name.

Wildkow

p.s. On the other hand it’s also kind of entertaining to catch the BDS’ers in mid-spew when they find out that other dem/lib’s support or otherwise have proposed the exact same thing!

 

flip flop, hypocrite
flip flop, hypocrite
flip flop, hyporcrite

Do trolls sing ?

 

Bush also offered to help all of our citizens in the gulf region affected by Katrina two years ago. Guess no takers here so he went off to ..... Iraq.

 

<div class='quotetop'>QUOTE(EricGo @ Sep 3 2007, 09:29 AM) [snapback]506309[/snapback]</div>

Ask John Kerry! :lol:

 

The shrub does it **so** much better !!

flip flop, hypocrite
flip flop, hypocrite
flip flop, hyporcrite

 

<div class='quotetop'>QUOTE(galaxee @ Sep 2 2007, 08:05 PM) [snapback]506129[/snapback]</div>

Well, the "bailout" isn't giving people tax dollars, its refinancing their loans. They still have to pay the money back, with interest, but they are being given a chance to qualify for FHA loans (with relaxed standards). It would be like you getting a low-interest loan for medical bills or student loans; I don't think anyone would object to that, as it isn't subsidized by tax dollars.

For the lenders, they aren't giving them tax money to bail them out, but allowing them to borrow money (and pay it back with interest) at a rate for 30 days that is usually reserved for single day loans. None of that comes from the government; it was set by the Federal Reserve, which has done more to avert a crisis than Congress and the Executive Branch.

There are calls for grants and direct subsidies to individual borrowers, and I think that's a mistake. We already have enough of a social safety net that no one will go hungry.

 

Where is the money to offset the increased default risk of ~ 10 - 15% coming from ?

 

<div class='quotetop'>QUOTE(EricGo @ Sep 3 2007, 07:40 PM) [snapback]506481[/snapback]</div>

The proposal is asking the lenders to make up that difference in investment return as a concession, with the reasoning being that market stability is the higher priority than quick profits. Make a little bit for a while until markets can recover and possibly avoid a disastrous recession.

 

Why should the lenders, any lenders be bailed out - they are all ruthless. Instead they need to be held to the fire.


Funny that no one has mentioned scumbag realtors that push unknowing clients into a loan just to make a sale. Or that realtors push loan officers to "find a loan" or they will take their business elsewhere.

People need to take some personal responsibility and learn about these loans. Realtors need to have some ethics and actually work for their clients. Don't buy more house than you can afford, and get some advice on what you CAN afford.

As for second mortgages - that is just stupid, when you can't afford the first.

I feel sorry for the elderly and those that are bombarded with solicitations. The soliciations need regulation.

Lenders need some regulations, as does the credit card industry, but those folks are Bushes friends.


I would love to see the Insurance Industry cleaned up. Health Insurance is critical. The industry is so crooked

 

<div class='quotetop'>QUOTE(viking31 @ Sep 1 2007, 07:03 PM) [snapback]505595[/snapback]</div>

Well, the whole point of a government is to look out for the best interest of its citizens. Sometimes this involves enacting laws to prevent people from being deceived and/or making decisions that will get them into trouble.

For instance Publishers Clearing House used deceptive marketing that ended up getting a lot of dumb Americans, especially seniors, to fork over sometimes tens of thousands of dollars because they thought they'd won the x-million dollar jackpot! One 80+ year old Iowa couple sent PCH more than $24000 and didn't leave their winter home in Arizona for three years on the fear that they'd miss the imminent vist by the "prize patrol" who sent their mailings to that address.

Technically, everything on the PCH mailings was true. They'd read something like "You've Won $10,000,000!", then note "That could be the headline if you won the contest" in fine print. The problem was that PCH was taking advantage of people's ignorance and lack of attention to detail. PCH was deceptive and deserved to be hammered, so big daddy government stepped it to do what it's supposed to do: protect its citizens!

http://ago.mo.gov/newsreleases/2001/062601.htm

With subprime lenders, many of them sweet talked Americans into some very bad loans that were almost sure to go sour (and I say this having worked IT for a mortgage broker at one time). Should a family have known better than to get an interest only ARM they could barely afford, that included a prepayment penalty to prevent them from refinancing? Yes!

On the other hand, should there have been safeguards to prevent greedy brokers from deceiving customers into accepting a deal they really didn't understand? I'd say yes to that too, and if our government prevented the problem instead of reacting to the consequences, I think we'd be better off.

<div class='quotetop'>QUOTE(Sufferin' Prius Envy @ Sep 2 2007, 01:00 AM) [snapback]505735[/snapback]</div>

Just for the record, I voted for Bush for his first term because of his (alleged) conservative social policy, I'm against any drug use and don't even use alcohol, and would be perfectly happy if America were a Christian theocracy. You might be surprised about some of my views.

That said, you're right. Bush didn't cause the subprime mess, though I'm not sure I agree with his approach on this matter (and many other matters).

<div class='quotetop'>QUOTE(burritos @ Sep 2 2007, 05:57 PM) [snapback]506065[/snapback]</div>

Out of curiosity, is there any PriusChat poster, liberal or conservative, who is a big fan of the bailout?

 

Another reason the market's so skittish: These days, it's lots tougher to tell which lenders are holding the bad debt. Has to do with the way loans are packaged/bought/sold.

 

<div class='quotetop'>QUOTE(Mick @ Sep 3 2007, 10:07 PM) [snapback]506573[/snapback]</div>

hahahahahahahahahahahaha

Someone has to get real. Fannie and Freddie are publicly traded companies. If I was a stockholder, I would not agree to my company taking it on the chin so that CDO investors and *other* lenders get a soft landing and way to dump the garbage loans !!!

What a joke.

 

I guess NEIL BUSH must be in hot water again. Last time was when papa bush was pres. so papa bailed out the whole S&L industry saving Neil from discovery of fraudulently siphoning proceeds of his Silverado S&L. Nice to have family in high places.

 

<div class='quotetop'>QUOTE(Sliderule @ Sep 2 2007, 07:50 PM) [snapback]506121[/snapback]</div>

In case you missed it, this is Fred's House of Pancakes.
This is where we DON'T talk about the Prius.
If you wander around the forums, you will see that there is an introductory thread at FHOP, which lays out the guidelines for discussion in here.
There's nothing wrong with this discussion.
You are more than welcome to wander back to the main forum and discuss nothing but Prius.

 

<div class='quotetop'>QUOTE(Wildkow @ Sep 2 2007, 06:32 AM) [snapback]505757[/snapback]</div>

:huh: :lol: :lol: :lol:

Makes me wonder, if it was a Democrat in office and he was doing the same things as bush would it be bad?
Of course not that was a silly question, what was I thinking....

 

I can remember a time when the Democrats were bearing down on lenders because the standards for getting a mortgage were too tough for lots of people to get loans. Then standards were relaxed and the subprime market was created allowing many more people to get a mortgage. Now the lenders are predators who gave loans to unsuspecting people who could not afford the loans in the first place.

When buying a home there are two things you always must do if you have any common sense - Hire a home inspector and an attorney to protect yourself. Those people who claim that they didn't know what they were signing when they took on these loans most likely didn't do the two things mentioned previously and now they are paying the price for saving a few hundred dollars. A competent attorney handling a closing will go over all documents (including your loan application) and make you aware if you cannot afford the loan you are taking on. If you buy a house without doing these things (or disregard your attorneys advice) you deserve whatever comes your way and I as a taxpayer should not have to bail you out.

If it can actually be proved that a lender was an actual predator, making mistatements and hiding actual terms of a loan then lets see the government act and prosecute those lenders. There have, in the past, been lenders fined for bad practices but they have been a very small minority in the scheme of things. Most all lenders follow all the rules set down by the states they do business in or they are not going to be doing business for long.

 

<div class='quotetop'>QUOTE(wkramer @ Sep 4 2007, 12:02 PM) [snapback]506815[/snapback]</div>

Uh, no. A competent attorney will let you know if anything in the document is illegal or predatory. But he has no idea what you can or can't afford. That's what a financial planner does.

 

<div class='quotetop'>QUOTE(MarinJohn @ Sep 4 2007, 11:20 AM) [snapback]506789[/snapback]</div>

Oh, no. Neil is doing quite well, thanks to his big brother.

Prince Neil

Neil Bush and Crest Investments

Bush Family