Government Mortgage Bailout...Yea or Nay?

desert rodent wrote:

Didn't the Reagan govt. bail out the savings & loans institutions in the mid 1980's. Precedent has been set.

The government bails out people all the time, it doens't make it right. The government bailed out a bunch of morons from New Orleans and bailed out the airlines not too long ago. Don't forget Chrysler. Bail outs are quite common, but they are bad ideas in each case.

Essentially the government is subsidizing stupidity.

Looks like alot of people need to run to the biggest company in the world. (Citigroup) Their marketing company has the best mortgages and schemes to get people debt free and financially independent. I'll leave it up to you guys to figure out what company I'm talking about. This company will be the premiere financial source in the coming years. Will be the Walmart of financial services. You heard it here first. Save this one and look back in 5+ years. :?

Mtn Dew wrote:

The government bails out people all the time, it doens't make it right.

Actually the government rarely bails out people - they bail out corporations and entire industries, who have the wherewithall to hire lobbyists and buy politicians.

They're bailing out the people who laud the free enterprise system and demand deregulation until their greed outpaces their judgment, and then they want their share of corporate welfare.

How ridiculous are people living in your area?

I know people in Miami making $40,000 annually getting $350,000+ homes.

I also know people in Colorado Springs making $50 annually getting $275,000+ homes.

No. Just because someone is selling something, in this case money, you don't have to buy it. Let the buyer beware.

OED wrote:

I've ranted on here before about this. A lot of the borrowers I've seen who are taking out these risky mortgages are not doing so on dumpy, small homes. They are buying nice, new McMansions. They've bought a home well beyond their means and now the government is going to come in and save them so that they don't lose their home. I guess the moral of the story is that you're a fool if you're fiscally responsible. I guess I'm also wasting my time saving for retirement while my neighbors all buy Beamers and boats like there's no tomorrow.

Exactly! And, of course, many of these people are the same people who constantly complain about high tax rates and too much government in their lives, how people should just be left alone with their own money to play in the free market, etc... Yet when they overspeculate and get in hot water, they expect the same government to bail them out. Sorry...it's the free market, deal with it.

Sorry if this has already been said, I don't have time to read the whole thread

Munson wrote:

Actually the government rarely bails out people - they bail out corporations and entire industries, who have the wherewithall to hire lobbyists and buy politicians.

They're bailing out the people who laud the free enterprise system and demand deregulation until their greed outpaces their judgment, and then they want their share of corporate welfare.

Corporations are just groups of individuals. It's the same principle, the only difference is that corporations have more political clout.

My point is that this isn't about helping the irresponsible jerk with an interest-only mortgage. Nobody cares about him. This is about bailing out the lenders, who don't want to get stuck with a bunch of foreclosed properties in a declining market.