The Big Bail OUt

[theknife]

from Atrios:

Spending the day watching CNBC, it's really quite stunning that they're unable to grapple with the real problem underlying all of this instead of the consequences of that problem. There's been a tremendous evaporation of housing wealth as a consequence of the bursting of the housing bubble. Lots of banks made bad loans and that money isn't coming back. Dealing with home foreclosures is time consuming and expensive and a lot of houses are underwater. Other people lost money insuring mortgages. Still more people lost money buying up those mortgages. Still more people lost money lending to people to buy up more mortgages. Even more people lost money insuring those loans. Etc.

All of this babble about liquidity and short selling and blah blah blah just obfuscates all of this. A big reason that there is a liquidity problem is that... people lost a lot of money. All gone!

sounds about right to me

[JackSpratts]

relaxing standards appropriately for buyers, or to get renters off of the rental hamster wheel and into equity positions isn't bad policy. on the contrary it makes sense for any number of reasons and it's the basis of us ownership society tax policy since at least wwii. the breakdown came from predatory lenders (not fannie/freddie) who lowered standards to get owners to refinance with balloon mortages that couldn't possibly be repaid when the introductory payments reverted to sky high levels. like payday loans this was actually a plan. the lenders would take possesion at default for peanuts, sell and profit. it worked, as long as defaults in any one area were below levels that affected general pricing. this was not a clinton policy, it was old time private enterpise predation that occured in the post clinton years on a massive scale while regulators slept.

i have a simple test for housing bubbles: when you hear bartenders are bragging about "flipping condos" take cover. the bragging was deafening in the lates eighties and mid 00's.

- js.

[multi]

funny you should mention bartenders..

[jcmd62]

Originally Posted by JackSpratts

predatory lenders

- js.

Predatory lenders?????????

Who put a gun to these peoples heads?????????

Who FORCED these idiots to buy houses well beyond their financial means and then FORCED them to sign on the dotted line to finance them with ridiculous variable rate, interest only and balloon mortgages?

EVERY FUKIN ONE of these idiots knew what they were buying was too expensive and KNEW that 5 years down the road when they actually had to start paying off the principal that they WOULD NOT be able to afford monthly payments that would double or even triple when they were barely able to pay just the interest to begin with.

So they lowered the standards, so fukin what. How is this anyones fault but the BUYERS??????? There are millions of people out there just like myself that refinanced or purchased a house when these morons did and were offered the same shit loans BUT said screw that. This is how much I can AFFORD to pay every month and I want a nice regular FIXED rate mortgage on a house that falls within this amount so that from day one I know I can make the payment each month as well as 15, 20, 30 years down the road my payments will still be the same.

I am so sick of you bleeding heart liberals constantly BLAMING EVERYONE but the people that willingly and full knowingly put themselves on the road to oblivion when they signed on the dotted line and PROMISED to pay the these loans when they knew they could not.

When are you idiots going to admit that just because the banks offered these loans NO ONE forced ANYONE to utilize them and perfectly good, valid affordable mortgage options were available to each and every one of them, but they CHOSE, yes they made a CHOICE, good or bad to ignore them and buy the 10 dollar Rolex out of some guys trunk instead.

[Ðiego]

Yes, yes..and let's see, who is it calling for the government to dole out another $300 billion to refinance those mortgages? Some 'bleeding heart liberal' no doubt....

Ah, there it is and true to form, it's John McCain. Fucking liberal bast..erm, wait a minute! WTF?!? Why that pandering son of a bitch!


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[Nicobie]

Originally Posted by Ðiego

Ah, there it is and true to form, it's John McCain. Fucking liberal bast..erm, wait a minute! WTF?!? Why that pandering son of a bitch!


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I'm not too happy about giving to the financial sector to keep us on a level track and not too sure McCain's give aways are affordable.

BUT.

I can guarantee that the dick-eared pinhead Obama will never pull off any of the free chit he is proposing.

Free health care as good as member of congress gets. Hahahahaha.... yea right.


Another expensive "bonus" for every citizen. What good did the last one do? And who will pay for it?


Free college for everyone, no matter how stupid or lazy they are. Sure thing Bubba...

Lower taxes for 95% of us. (the biggest lie of all).

It is just the same old crap from a politician who is 'owned' by the Daley Chicago machine. :bow:

Many promises, zero follow thru.

[Ðiego]

You've GOT to stop fucking that cow, Nic


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