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Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,526,326 times
Reputation: 1721
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Well I look at this from a fairly selfish view point. I personally want housing to take a big hit. And I don't want a bailout of any type. Actually let face guys/gals everything the FED has tried so far has failed. The extra liquidity put in the economy, the auctions, and the interest rate cuts have not done much to help the economy out in general. And has definitely not help the housing market and has not saved many people from forclosure and loss of a home. Look let us let the market dictate where the economy and housing goes. I believe that if we are willing to take a sharp blow now we will come out of a moderate recession quickly. But if we don't we as a nation continue this path of letting the government interfere with natural market declines. Then I feel we are going to have a very very long recession (not sure how serve) for a long while.
Like I said earlier I looking at this with selfish eyes. I really like the idea of the housing market crashing. I really what housing in my area (the northeast) to become affordable again. I want my family, friends, and myself to be able to own a home and only spend about a 1/3 to 1/2 our monthly income on our mortgages. Will it happen? No probably not. But one can hope.
I happen to agree with you, baystater. The Fed's actions aren't helping, Big Govenment can't pick up all the pieces and markets self-correct when given the opportunity. Exit the puppetmasters and the market will correct swiftly to find a new point where supply and demand are more or less in balance. Yes, people will lose homes they should never have owned, and that is unfortunate. Companies will go out of business, and that too is regrettable. They're reaping what they sowed-- nothing new there.
I'm all for a normal (and needed) market correction-- I just don't think poor decision making and irresponsible behavior should be rewarded. I think the enabling should stop and repercussions should once again follow actions. I call that fair. I call it a free market economy. But if it's selfish to expect people to swallow their own medicine without others having to pay for it, then I guess I'm selfish, too.
But the problem is our country never (when its gets this big) allows things to just work themselves out. Look at the savings and loan crisis? Look at the internet bubble bursting (that's when they lowered rates to stimulate the economy)...
If a lot of people are involved - the government always steps in to "help" in some way...
I'm not positive on this, but isn't BOA the organization that was issuing credit cards to illegal aliens and received the wrath from their long time account holders? Just wondering.
I'm not positive on this, but isn't BOA the organization that was issuing credit cards to illegal aliens and received the wrath from their long time account holders? Just wondering.
I'm not positive on this, but isn't BOA the organization that was issuing credit cards to illegal aliens and received the wrath from their long time account holders? Just wondering.
Yes. They were not the only one issuing cards to illegals but they were the ones that were marketing to them. They received a lot of negative press about it and there was a backlash from some of their customers.
I believe BofA is a member of the FHLB which is lending massive amounts to the lenders to keep them from entering into bankruptcy. Allowing Countrywide and other insolvent lenders to keep making loans has created a moral hazard.
“The widespread use of the FHLB system to provide liquidity — but more clearly bail out insolvent mortgage lenders — has been outright reckless. Countrywide alone — the poster child of the last decade of reckless and predatory lending practices — received a $51 billion loan from this semi-public system; in the absence of this public bailout Countrywide would have ended up where it should, i.e. into outright bankruptcy. And the largesse of the FHLB system does not stop at Countrywide. A system that usually provides a lending stock of about $150 billion has forked out loans amounting to over $750 billion in the last year with very little oversight of such staggering lending. The risk that this stealth bailout of many insolvent mortgage lenders will end up costing massive amounts of public money is now rising.”
I am not for "bailouts" either but you all do realize that when millions of homes foreclose, it will affect the value of YOUR home. Not a big deal if you can stay in one place and ride out the storm but not everyone can do that. If you are forced to relocate or for whatever reason HAVE to sell your home, you are screwed, even the responsible ones.
I am not for "bailouts" either but you all do realize that when millions of homes foreclose, it will affect the value of YOUR home. Not a big deal if you can stay in one place and ride out the storm but not everyone can do that. If you are forced to relocate or for whatever reason HAVE to sell your home, you are screwed, even the responsible ones.
Even though these homeowners are responsible, that does not mean they are entitled to have their house retain or appreciate in value. If I am a mutual fund shareholder, financially responsible and budget appropriately in my personal life, that does not imply that my fund is entitled to appreciate in value.
Efforts to artificially levitate home prices are doomed to failure. Many of these people who are allowed to remain in their homes will choose to leave on their own accord when they realize the comps in their neighborhood are well below the cost of the mortgage. They will simply mail the keys back to the lender and leave. Why should homeowners struggle to make payments in a faltering economy when their house is worth much less than the mortgage?
In addition, investors of future mortgages might restrict new loans even further, sending interest rates soaring and apply further downward pressure on home values.
I despise BoA,
may they rot in hell with the money changer form biblical times...
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