So it looks like we are bailing out stupid people again

#27
#27
VolByBirth said:
These assets are already "written down". In fact, here is what's interesting right now.
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Not sure that all of them are written down fully or that this would not lower the value of assets that haven't been lumped into the toxic group.

From what I understand, they are targeting people who are struggling to make payments but are not behind in payments. These may or may not be subprime loans.
 
#29
#29
I'm starting to agree with Droski, you only qualify if your mortage payment represents more then 31% of your montly income. Basicly people who made a stupid decision when they took their mortgage, the people who played by the rules, dont get anything...
 
#30
#30
Our government does not exist to help people that help themselves......in Obamanation!
 
#32
#32
OWB said:
Stupid people? Like Wall Street?
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not really. It's more about people too stupid to avoid buying a house they can't afford or too stupid to understand that their mortgage would adjust and break them in the future.
 
#33
#33
volinbham said:
Not sure that all of them are written down fully or that this would not lower the value of assets that haven't been lumped into the toxic group.

From what I understand, they are targeting people who are struggling to make payments but are not behind in payments. These may or may not be subprime loans.
Click to expand...

No one knows if they've been written down properly - -that's part of the issue. No one can value these assets. Many believe they've been written down too far because their is an underlying asset (the home) unlike unsecured loans.
 
#34
#34
BigPapaVol said:
not really. It's more about people too stupid to avoid buying a house they can't afford or too stupid to understand that their mortgage would adjust and break them in the future.
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Wall Street is certainly just as culpable -- along with the rating agencies and everyone along the mortgage chain.
 
#35
#35
VolByBirth said:
Wall Street is certainly just as culpable -- along with the rating agencies and everyone along the mortgage chain.
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Not in the individual mortgages we are bailing out. This is about the stupid individuals, not the system.
Posted via VolNation Mobile
 
#36
#36
BigPapaVol said:
Not in the individual mortgages we are bailing out. This is about the stupid individuals, not the system.
Posted via VolNation Mobile
Click to expand...

If you are bailing out a mortgage, you are bailing out the lender/bank/security it's imbedded in. Some interest income is better than no interest income. The assets have already been written down substantially and any stabilization will salvage the value of these assets sooner rather than later -- meaning profit sooner rather than later.

We can argue whether or not these bills will actually stabilize the market or not -- that's a fair argument. I believe if we slow foreclosures and value declines we are doing the right things. It's all about inventory and we need to get rid of plenty of it.

This isn't saying you aren't correct about idiot individuals -- but if you think the banks/lenders didn't realize they were lending to idiots, then that is wrong. They simply didn't care if the borrowers knew or understood their terms -- the banks completely misunderstood the market and risk because the paychecks were too big.
 
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