Who the Government Should Really Be Bailing Out
It's not the banks, it's the people who are paying their mortgages and are now upside down because they bought a house in a grossly overinflated market due to the run on bogus mortgages. Now they find themselves with a home that is worth far less than they paid for it and potentially at risk for the bank to call in their note.
I work with one Air Force officer who just lost $30K on selling a house because he is being reassigned to another base. The home lost about 25% of it's value since he originally bought it four years ago. That's 30K this young guy with a family has to pay back.
They should be sending out checks to these people to make them whole. The American people's tax dollars should be going to the American people, not to keep a bank afloat that made poor choices.
10/2/2008 10:27:19 AM
That's too bad, but I have to ask. Why would a young soldier, who will more than likely be reassigned after a 2-4 year tour, buy
a house? I mean, how much equity can you build in a couple of years. It sucks when anyone loses money, especially a military guy who doesn't make much to begin with, but this may be just another bad decision on the buyers part.
10/2/2008 10:49:45 AM
humm is he willing to write me a check when his new house appreciates by 25 %?
ronin, your point is pointless.
If he is keeping money in the market (not cashing out) his new house will have also dropped in value by 25%.
if he is upsizing to a new bigger house, in real dollars, he's actually ahead.
10/2/2008 11:15:03 AM
He bought the house, like many others, who thought because of the rapid escalation of value, he would be able to make some money at the end. Yes, he took a risk that many other before him took.
Frankly, I'm not sure there is a historical precedence for home values dropping like this short of living in New Orleans post-Katrina.
10/2/2008 11:55:18 AM
frankly its irrelevant, if he is buying a new house.
10/2/2008 12:06:52 PM
I'm sorry, but buying a house is a risk. MY tax dollars going to some poor schmuck who lost a bunch on his/her house is about as much BS as giving it to the rich bankers. When the market was "great" for the buyer. People saw it to by above thier means with flexible financing. Too Fing bad. You made a piss poor decision and that's the end of it. Live and learn. And for the record, I don't rent.
10/2/2008 2:28:01 PM
there was that OTHER houseing bubble from the 80's but frankly Dangle, most goldfish don't rememeber that.
10/2/2008 2:30:08 PM
What they should be doing with that loot is investing in our infrastructure. Creating jobs by creating work, i.e. our crappy bridges and highways. WOW, what a novel idea.....people working, making money will?.......that's right, SPEND IT!
10/2/2008 2:30:25 PM
maybe a recession is what we need....to get everything back to how it should be.
10/2/2008 2:31:25 PM
no.
they shouldn't spend it.
I should spend it, its my fkn money.
our crappy bridges and highways are fine. why would i want them to spend 10 cents on every dollar and waste the rest?
My wife does that already, that job is taken, sorry Uncle Sam.
10/2/2008 2:33:10 PM
"our crappy bridges and highways are fine."
I understand what you're saying in this context, but IIRC, there is definitely a growing problem with bridges. It's a good example of what tax money -should- be spent on.
FWIW, not every home buyer who's having trouble is a moron who mortgaged too much house.
I'm coming around to the idea that they should just take that 700bn and give it back to taxpayers.
10/2/2008 3:20:35 PM
Don't they still have to TAKE it from us?
10/2/2008 3:22:06 PM
Buying a house should not be much of a risk unless you're buying it to flip. The risk was created by the idiot banks giving out mortgages like Happy Meal toys which drove up the price of the existing inventory.
So again, I say bail out the homeowners who paid increased prices not the lenders.
10/2/2008 3:41:00 PM
that is the most communistic piece of advice ever uttered there dangle. idiot banks? how about idiot consumers.
banks never put a gun to anybody's head to buy.
why should buying a house not be risky? you sign 5000 pieces of paper and hire an attourney to do something, you can be damn sure its fkn risky.
besides, IF THE GUY IS BUYING A HOUSE, ITS GONNA BE CHEAPPER ITS A BUYERS MARKET.
don't you belive in personal responisiblity dangle?
10/2/2008 3:48:41 PM
'banks never put a gun to anybody's head to buy.'
Millhouse, I agree to a certain extent. They do not necessarily point a gun BUT they do try to subtly coerce the buyer into purchasing a more expensive home than they should and/or sign a mortgage that the bank knows will be eventually defaulted....
As far as losing 25% of the value of the house goes...IT does suck to lose that equity..The name of the game is to build equity, buy a newer/larger home and pay as litle as possible due to the fact you were able to build that equity and make more on the sale of your home...
Either way this SUCKS for everyone........
I hope it get better soon...
10/2/2008 8:32:40 PM
Of course I believe in personal responsibility. I also believe that when you make a major purchase such as a home, you shouldn't have to fall prey to an overly inflated price because banks are handing out loans to every yahoo with a pulse.
10/3/2008 8:01:33 AM
you dont have to fall prey.
buy a calculator. it's not hard to figure out what you can afford.
10/3/2008 9:27:30 AM
It has nothing to do with what you can afford.
It has everything with the market being artifically over-inflated due to the banks handing out loans to people who shouldn't be getting them. The banks should be the ones taking the loss.
10/3/2008 9:36:25 AM
you should'nt buy a BMW if you can only afford a KIA and also you need to remember the banks also where loaning money based on the same over inflated market
10/3/2008 9:51:31 AM
' It has nothing to do with what you can afford. '
It most certainly does....
You should know what you can afford before you sign on the dotted line..I think some blame can be placed on the people that knew they were over extending their finances to keep up with the Joneses(?spelling?LOL).....
I do agre that the most blame and penalties should be handed to the CEOs, Wall Street, and major Companies that got too greedy......
Read an article about a 90 year old woman who tried to kill herself because she was losing her home that she lived in for over 38 years.......Sad story....
10/4/2008 9:20:26 PM
"what's with this world"..?
10/5/2008 1:33:42 AM
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