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My question is: where were the regulatory agencies? The Federal Reserve Bank was warning about this potential crisis as far back as 2004! Why were lending institutions allowed to continue with reckless business practices if in the end it's tax-payers who will pay the bill? Who -- back in '04 and '05 -- fell down on the job and FAILED to look out for American tax payers? .
Puh..leeze..look out for the American taxpayer?? That's pretty damn insulting to this American taxpayer. I'm a a grown man and neither need nor want to be looked out for, esp. by some gov't institution. What about the American taxpayer's personal responsiblity in this? Personally I don't see most American taxpayers as being so stupid to be tricked by lenders. Are you saying that when people signed for their mortages that they didn't understand their payment and how that might impact their particular lifestyle? Or are you saying they didn't know what their future interest rate would be and therefore were stupid to take the loan with that level of risk? Of course they didn't know..who can predict the future, but people CHOSE to take these loans anyway.
People knew and many benefitted by the increased opportunities of home ownership brought by these loans.
Puh..leeze..look out for the American taxpayer?? That's pretty damn insulting to this American taxpayer. I'm a a grown man and neither need nor want to be looked out for, esp. by some gov't institution. What about the American taxpayer's personal responsiblity in this? Personally I don't see most American taxpayers as being so stupid to be tricked by lenders. Are you saying that when people signed for their mortages that they didn't understand their payment and how that might impact their particular lifestyle? Or are you saying they didn't know what their future interest rate would be and therefore were stupid to take the loan with that level of risk? Of course they didn't know..who can predict the future, but people CHOSE to take these loans anyway.
People knew and many benefitted by the increased opportunities of home ownership brought by these loans.
You misunderstood my reply. Please go back and re-read my reply in the context of the post I was replying to.
My beef is this: why should the American tax payer bail out lending institutions that were partying like crazy in the name of greed? Why is the Federal Reserve Bank dumping $40, $50, $60 BILLION into the stock market now that the whole game is collapsing like a house of cards? And, if this is the way it's going to be -- that tax payers are to subsidize a supposed "free-market" system -- why weren't the government regulatory agencies looking out for me as a tax payer back when the Federal Reserve was sending out the warning signals that we were headed for a big problem at the hands of greedy lenders?
A couple points that you have a misunderstanding on:
1. The American taxpayer is not, I repeat, is not bailing out anyone. This isn't taxpayer money being floated. In the name of greed? I won't go into that , but will just relabel that one "the marketplace".
2. The Federal Reserve is not dumping money into the stock market. The Fed doesn't play the stock market game. They regulate the amount of money floating in the economy and they have served their purpose well by adding liquidity to the economy these past few months. It's their job to do that.
3. "Subsidizing" the "free market" system?...see point one
4. Do you honestly want the government to micromanage your life so that when anything negative appears on the horizon, the government must step in? Or would you rather the issues try to work themselves out? What makes you think the government is so smart to begin with?
2. The Federal Reserve is not dumping money into the stock market.
4. Do you honestly want the government to micromanage your life so that when anything negative appears on the horizon, the government must step in? Or would you rather the issues try to work themselves out? What makes you think the government is so smart to begin with?
The Federal Reserve has put billions of dollars into the stock markets to keep them from collapsing. It was in the news! We have regulatory agencies for a reason, and, yes, I want them to do their job if in the end my taxes have to shore up stock markets and fund bail-out schemes. Problem is, we have industry people running the regulatory agencies and looking out for the interests of organizations like Citi Group instead of tax-payer joe schmoe (aka you and me).
"The Fed injected tranches totaling 62 billion dollars Thursday and Friday into the financial markets to ease tightening credit linked to the crisis in the US subprime mortgage sector."
The Raw Story | Fed pumps two billion dollars into US financial system (http://rawstory.com/news/afp/Fed_pumps_two_billion_dollars_into__08132007.html - broken link)
Last edited by Winston Smith; 12-04-2007 at 01:48 PM..
Reason: grammar error
I'm angry about this. I purposefully did not buy any more house than I could comfortably afford and saw fools purchase homes that cost twice as much as mine even though their salary was a quarter of mine. Now these people are going to have me subsidise their stupid lifestyle? I'm steaming.
And how many of these will be those who took out 2nd and 3rd mortgages to live a lavish lifestyle while the rest of us lived within our means?
Now they'll be rewarded with lower fixed rates than the fixed rates we chose.
Not only that -- this bailout is for the irresponsible. Those who have been paying their mortgages as the rates went up because they planned ahead will not be given the bailout, they will be stuck with higher rates.
And how many of these will be those who took out 2nd and 3rd mortgages to live a lavish lifestyle while the rest of us lived within our means?
Now they'll be rewarded with lower fixed rates than the fixed rates we chose.
Not only that -- this bailout is for the irresponsible. Those who have been paying their mortgages as the rates went up because they planned ahead will not be given the bailout, they will be stuck with higher rates.
From what Ive read and understand about this "bailout", is that only those
who remain in their houses and have been able to pay their mortgages
will qualify. Not those who have become delinquent in their payments.
So, if this is true, whats the point of bailing those types out? I dont think
the gov. should get involved at all tho. JMO
It's not all of the people who have been making their payments. A portion of those who have been making the payments but who may not be able to make the increased payments, as determined somehow by the lenders, will get frozen but if they think you can make the increased payments then your rate won't be frozen.
I'm angry about this. I purposefully did not buy any more house than I could comfortably afford and saw fools purchase homes that cost twice as much as mine even though their salary was a quarter of mine. Now these people are going to have me subsidise their stupid lifestyle? I'm steaming.
I'm also angry. When I got my mortgage I had choices -- a smaller house, fixed rate bigger down payment -- or an extravagent house, low adjustable rate, no down payment.
Now I come to find out I could have had the extravagent house -- paid no down payment, the government would be fixing the rate at a lower rate than I've now got. And -- I could feel superior and smug about all the little people living in their little houses - and paying more interest.
It is my understanding that this program will not help the stupid investors that own second homes, nor will it help those that are behind in their payments. Also the people that cant afford the newer adjusted rate will not benifit. It will only help a very small percentage of people. I would hate to assist the "investor" that did not know what he or she was doing.
I don't want people to benefit from their bad decisions, but I don't want a national or even international depression coming from it either.
The battlecry for any socialized/communist bailout
"If you don't let the gubmint step in, things are going to get worse for everyone"
In Soviet America, teaser rate freezes YOU!
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