Feds bailing out home owners.....Follow

link?

I don't know that I'd call it a bailout.No one is getting their home bought for them or getting off for free.

You can say that even the above is far too much but I'd imagine that Bush realizes that he can't crow about the "execellent economy" when a significant number of people risk getting evicted from their homes because they can't afford them.

Edited, Aug 31st 2007 11:51am by Jophiel

One of the key elements of Bush's plan would allow homeowners with a good credit history, but who cannot afford their mortgage payments, to refinance into mortgages insured by the Federal Housing Administration to keep from defaulting.
[...]
He rejected any direct government aid to homeowners losing their houses to foreclosures, saying he only supported federal government help that would encourage refinancing and educate prospective home buyers about risky mortgage terms
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the two statements directly contradict each other. they ARE aiding people who are in threat of loosing their homes to forclosure. they ARE bailing out over extended fools who rolled the dice and lost.

lets look at recession. its like a wildfire. it is GOOD for an economy.

why? it is the check and ballance against run away inflation, like the one the FEDS CREATED in the housing market by dropping the prime rate for loans to begine with. the spiraling home prices are a DIRECT RESULT of that policy.

now, when intrest rates are climbing again, instead of the housing market coming back to reality, it is again being artifically supported by federal policy. fools overextending themselves SHOULD go into bankrupcy. those houses then will be auctioned off, and the prices in those areas will begine to come down.....AS THEY SHOULD.

the feds tried to hold off a recession that was supposed to happen in 2001 by droping the prime rate. a bunch of opertunists jumped on it for a quick profit and some individuals rolled the dice on the prices to keep climbing hoping to reep a profit.

as the economy picked up, the inrterest rates started climbing, and the artificaly jacked up home prices could no longer be supported. now, people owe more money on their homes than they are worth, and those fancy interest only loands investors used to get as much house as possible in their greed are starting to come due and no one is there to buy their over inflated investment.

in comes the feds. again, they are artifically supporting over inflated home prices by offering those gamblers a lifeline to maintain their dice toss.

it wont work.

wages are not going up. the number of people who actually NEED a home for a faimily is NOT GOING UP. the flood of investors snapping up property has STOPPED.

there is a flood of homes people bought as investment property sitting on the market that there simply is no support for in the economy. no massive increase in wages, no massine increase in ACTUAL demand for homes.

handing those gamplers a way to sit on it for a while longer is just helping them support their gambling habbit, and eventually, just delaying, not stopping, the eneviatable losses attached to those investments.

it is just buying time.....for INVESTORS.

there needs to be a recession. there needs to be a wildfire to cleanse the market of all the artifical fat jacking up prices artifically.

delaying it will only compound it and make it exponentially worse when it does finally happen.

they are hoping for a lifeline. another tech boom to bail them out. its not comming. we are loosing jobs to foreign markets. manufacturing is down. wages are stagnant. tech jobs are going overseas just like the auto industry, steel and electronics.

there is NOTHING supporting our economy right now but speculation.

a recession will be painfull, but it will bring reality back to not just home prices, but food, fuel, labor and everything all across the board.

delaying it is not the answer. artifically supporting it will only make it worse.

Is that a prima faceplant argument?

While I agree with the wildfire logic to an extent, that's not what this bill is presenting. There will still be major repercussions for the housing market in general, with homebuilders being hit the hardest as construction grinds to a halt.

The economy will hit a speedbump, as it should, but not collapse into the credit crisis everyone is expecting.

If it makes you feel better, think of it as a mortgage company bailout. The banks don't really want to foreclose on a bunch of properties and have a crapload of homes to have to sell to try to make up for it.

The purpose of this bill is to stave off the recession until Hilary wins the election, then it's her fault, and that all but assures Republican power until 2020.


Ron Paul in '08!

Mushroom, mushroom!

Why a badger?

Why not a badger? I bet a badger could take you.

It seems actually one of the least terrible economic decisions that Bush has made and absolutely necessary if we don't substantial economic fallout.


But I do think there needs to be penalities for the lenders. There was too much exploitation going on and the government needs to have better control over unscrupulous corporations.

Edited, Aug 31st 2007 3:33pm by Annabella

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