Comments on: Subprime mortgage aid plan a good idea?

By: Kenneth

Kenneth — Fri, 14 Dec 2007 06:49:31 +0000

What a bunch of hypocrites these central bankers are ? Where were they when the financial shennigans were out there creating the framework for these subprimes and SIVs ?
They were obviously sharing the same bed with the bankers and having a party !
To come out now and tell the world that they need $’000 billions to save the world - whose world are they saving ?
The boss of Goldman Sachs is going to receive a handsome bonus for short selling their subprime and SIVs positons before everyone else . Guess who tipped them off ?
The other bosses who resigned walked with $ millions in their pocket - Jack the Highwayman pales by comparison in the techniques of robbery.
What a rip-off these bankers are and thanks to your central bankers ( your local sheriff in Sherwood Forest) !

By: Daniel

Daniel — Wed, 12 Dec 2007 23:54:44 +0000

There is an issue here that many seem to be overlooking. There has been a crazy Monopoly game going on in the real estate industry. Many have been cashing out hundreds of thousands of dollars in recent years. Banks made easy loans available artificially inflating the value of homes. Investors pocketed big profits and everybody was happy. Now the party is over and everyone is whining. It is time for the US to suffer the hangover of the last decade’s excess. Maybe when it is over, the American dream may become attainable for working class Americans.

By: Stacey

Stacey — Thu, 06 Dec 2007 22:43:18 +0000

Everyone is being so selfish. There is NO REASON why anyone should lose their home. Some people have had hardships beyond there control and have no choice but to take a subprime loan especially when renting would cost just as much. Also many borrowers were told it is extremely unlikely your home value will go down-just refinance before the arm kicks in and in the mean time improve your credit. Many people were not aware that the market could crash so badly. And the credit rating system is another disaster. The amount of blatant mistakes on credit reports and the amount of time and effort it takes to remove them is ridiculous. We had latenesses on our report on a mortgage loan that had been paid in full for years before the alleged latenesses. My parents did not have money because my dad got seriously ill at 40 years old. I paid my way through college and lawschool and my husband is a police sgt who is working day and night and teaching at the police academy so that I can get my own business on its feet -so I can stay home with my kids-one who has a condition that requires close monitoring. We are hard workers who have faced illnesses and other hardships, but have still given our family what it needs. We were not irresponsible or lazy or hoping to take advantage of anything-we were just getting by the best we could. I am sorry for those who were already foreclosed on and I hope they get the help they need. And for those who were able to get prime loans because there credit was good and they did not face hardships that caused finanacial problems for them-good for them. They are lucky. This will help those people too. The foreclosures will stop and there home values will not continue to drop. I really don’t see a negative. Do you people really want to see families with babies out on the street even if they did, for arguments sake, make a an uninformed financial decision?

By: Tracy

Tracy — Thu, 06 Dec 2007 20:39:03 +0000

Why is everyone not seeing the big picture here. Yes this is to blame and that is to blame but the bottom line is that everyone will suffer the consequences of this disaster. All the people worried about that they did the right thing will also pay if there is no bail out. Why is it OK to bail out the Iraq people with billions of dollars but not OK to help out their own neighbors.
This was a bad judgement call by all involved. I am sure everyone of us has made some bad judgements in their lives.
When all is said and done it will make the regulations change and make this country stronger and better. We learn from failure not success.

By: Sometimes

Sometimes — Mon, 03 Dec 2007 22:50:58 +0000

The sub prime crisis is caused by very risky loans that were sold to people who could not afford the properties they were buying.

Therefore they entered in fancy kinds of “mortgages” which had undelying assumptions of property value and interest. Now the US Gov. is backing these risky loans by making them as good as 30 years mortgages with a fixed interest rate??

Someone is “printing” a lot of money to cover this up!!

By: Jason

Jason — Mon, 03 Dec 2007 22:43:12 +0000

It’s a good idea. Many people such as myself who are currently able to pay our mortgage on time may feel that we are getting cheated by this plan as why shouldn’t these borrowers be required to pay on time? Problem is, they can’t. We aren’t being cheated because if this plan isn’t done, many millions of Americans will be out of work as many banks will go out of business. And, people with good credit won’t even be able to get loans - that’s already happening. Why else do you think these banks support the plan?

I agree, a healthy financial system should be the ultimate goal, but assets being sold or unloaded at fire sale prices will merely cause huge economic problems - the plan will allow the process to unfold for a longer duration of time. That will allow the economy to absorb the cost over time.

It’s the same concept as paying for a car over five years instead of having to come up with the cash at once - except this time, you don’t have a choice but to buy the car and you simply don’t have the cash.

By: Julie

Julie — Mon, 03 Dec 2007 22:35:49 +0000

One more comment — can we say ‘class action’?

By: Julie

Julie — Mon, 03 Dec 2007 22:33:14 +0000

This makes a mockery of any prudent saver. Its all about saving the banks and nothing to do with the free market — which needs to reset naturally. Not one person complained when prices were skyrocketing and fundamentals were way out of whack. But now when its obvious the inflated housing prices need to come down to become affordable to prudent buyers — then now - there’s talk of a bailout. This will only stretch out the housing debacle only to have their homes end up in foreclosure anyway. One question — does this ‘teaser’ rate get tacked onto the end of the loan? If so, there’s no reason to keep a home, its already gone into negative equity!

By: John Y.

John Y. — Mon, 03 Dec 2007 22:23:58 +0000

This is a bail-out for big business. A lot of other companies are suffering from the poor practices of the mortage companies. Don’t be fooled into thinking that our Congress cares for the little guy.

By: Bill H.

Bill H. — Mon, 03 Dec 2007 22:08:26 +0000

Mike T. - you are wrong about the regulators. The onus is on the borrower. Just because someone was foolish enough to take a gamble on something like the ticking time bomb that an adjustable interest rate really is does not obligate the government to come to their rescue. If you can’t afford to buy a house - don’t buy one. No one held a gun to their head and made them apply for a mortgage. If the lender wants to roll the dice and load money to someone who may not be a good prospect then they deserve to get burned, too. The bond idea is not a bad one - but a full scale bailout (or freeze for six months) that one presidential candidate has called for is yet another example of “big government” sticking its nose where it doesn’t belong.