mortgage meltdown

[Guest 44M]

I`m excited to see ( ) our goverment spending our 90 billion to save AIG as they did already before with some other banks and corporations. Many people say we help people who made mistake taking on loans they couldn`t afford it, they could, at the time, but were trapped in to a APR mortgages that ballon their mortgages for hundereds of dollars. Goverment is saving banks but they shouldn`t help the people..??? thats weird... what happend is that banks and mortgage companies got their asses kicked by the people...people who instead to keep on paying more and more for their houses every 6 months decided to..file a bankruptcy...and that is how all those powerful big banks and mortgage companies went belly up, because they got stuck with whole bunch a houses they couldn`t sell and no money coming in from them...I have only one thing to say, goes around,comes around.....

Db

[TGO David]

I try not to look at it from the angle that the Government is bailing out the bad investments but rather that the government is protecting a few hundred thousand gainfully employed citizens from being thrown out on their asses if AIG were left to close the doors.

AIG employs a lot of people. Quite a few here in Nashville. If the company goes belly up, those people are suddenly without jobs.

[fury2neon]

Well, the government caused the problem with the Community Revitalization Act that Bill Clinton used to hammer banks into making loans under threat of prosecution for discrimination. The act was passed in the Carter administration but Clinton put it on steroids. Bush's mistake was not having it repealed.

[greenego]

I think they did the only thing they could. To let any more big banks and investment companies fail would be much worst. The lay offs would be bad enough but our credit around the world be shot to hell. Today they announced they are putting together something like they did during the S&L mess, to buy bad mortgage loans.

My only fear is this is only a band aid. It may work for now, but as long as we have a system that allows Congress to be influence by special interest groups we will see these problems in another ten years or so.

I also believe McCain is willing to change the system.

[GLOCKMEISTER]

I wonder about the constitutionality of all this... they cant legally do it, can they?

[fizik]

whether it's legal or not, who's to challenge it? they've all got deeper pockets than any of us who would question it.

this whole situation, as fury said, the unforeseen and unintended consequence of crappy economic initiatives under clinton, carter, and reagan, at least those three if not more. this is a bandaid fix, and someone neeeds to come up with abulletproof solution, if one exists, rather soon.

[ioerror001]

Sad we the worlds strongest economy is slipping further and further toward communism/socialism because people are too lazy to go and apply themselves and be productive. I think the majority of people in this country are looking for a handout. Pride is dead, greed and envy are running rampant. Maybe something can help, but other than hard work for an honest wage I don't have any fixes. And when you wad the constitution up and wipe your ass with it like this administration has, guess it's setting the perfect stage for the obama marx ticket to sweep in and socialize the country in january. Prepare for the ride.

[Mike.357]

Congress to be influence by special interest groups we will see these problems in another ten years or so.

I also believe McCain is willing to change the system.

not so fast there, http://en.wikipedia.org/wiki/Keating_Five

[greenego]

They can do this because they have the power. Its like fizik said who's to challenge it? Our government is suppose to have checks and balances. One branch is suppose to be able to set the others straight. The problem I see is that all the three branches are influenced by the same people. They do not necessarily have the countries best interests at heart.

[Mike.357]

They can do this because they have the power.

exactly, and I do not see a candidate that will change things. Maybe Palin would be different if McCain up and died if elected. She is probably just as bad as the rest though, we just don't know it yet.

[fury2neon]

I wonder about the constitutionality of all this... they cant legally do it, can they?

They couldn't constitutional do the "New Deal" until Roosevelt threatened to stack the supreme court. They pretty much do whatever they want until the people complain load enough.

[Guest 44M]

I will tell you one thing guys, in healty and fair capitalism corporations who fail to be successful go in to a bankruptcy, in the socialism, on the other hand, corporations are owned and protected by the goverment , it seems to me that we are turning into a socialist country... I hear fraze "working man" more often in the last week or so than I heard in the all last 11 years I`ve been here, now is a "working man" duty to jump in and save the corporations with his money, but rememer, that is that same American working man who lost his house because they tried to rip him off with ARM mortgages and everyone said, "well, it`s middle class own fault for taking on a mortgages they can`t afford it"....well, it`s corporations own fault for this financial mess, it is their own greed that destroyed them and American working man and women should let them sink to the bottom where they belong...

[Guest 44M]

I wonder about the constitutionality of all this... they cant legally do it, can they?

not in a capitalist or socialist countries, but they do that all the time in dictatorship ruled countries....where goverment and president don`t answer to anybody...

Db

[Guest 44M]

and I don`t blame either party for this, this is way bigger damage, both parties have failed to make right moves and they are all equaly to blame for this mess...

[Guest TnAndy]

I try not to look at it from the angle that the Government is bailing out the bad investments but rather that the government is protecting a few hundred thousand gainfully employed citizens from being thrown out on their asses if AIG were left to close the doors.

AIG employs a lot of people. Quite a few here in Nashville. If the company goes belly up, those people are suddenly without jobs.

Keep that in mind when what passes for money now inflates away the last of it's value in a Wiemar/Zimbawaen whirl. What they have done is simply trade some pain today for a whole lot more pain tomorrow......but then, that's what politicians do best.

Get ready for 20 buck gasoline and 5 buck/loaf bread....it's on the way.

[greenego]

This is from an investment news letter I get. May shade some light as to when and why this got started. Bottom line, no administration changed the status quote.

"Critics complain that the government shouldn’t be bailing out failing enterprises and they shouldn’t be removing risk from the private sector. In an ideal world, they are right. But in the real world government must take whatever steps necessary to preserve the financial system, which is the foundation for the entire economy. Remember, government played a significant role in creating the crisis. It all began with legislation during the Carter administration. The term "redlining" was used to accuse bankers of discriminating against minorities. As a result, banks that did not grant mortgages to low-income home buyers were fined and punished. The Clinton administration amplified the pressure on banks to make loans they otherwise would not consider".

[Sheepdog]

...Remember, government played a significant role in creating the crisis. It all began with legislation during the Carter administration. The term "redlining" was used to accuse bankers of discriminating against minorities. As a result, banks that did not grant mortgages to low-income home buyers were fined and punished. The Clinton administration amplified the pressure on banks to make loans they otherwise would not consider".

Here's a New York Times article from when this happened, back in 1999...

[clipslinger]

The mortgage companies were being pushed for better loans for the lower classes.Instead of coming up with something fair they chose to take the route of the payday loan companies. the brokers knew at the time these folks couldnt afford the loans after the rates hiked. They told everyone that when that time came they could refinance to a lower rate. This obviously didnt happen and forclosure started. Greed will kill this country long before communism or socialism or facism. They never should have deregulated Wall Street. You cant trust an alcoholic to watch the bar.

[Guest mikedwood]

I equate it to the ships of Black Beard and Black Bart where about to sink and the government paid a ton to save them and set them back out to sea.

The interesting thing will be it still won't be the same economy.

If you were 98.6 plus or minus a few degrees you could get a house with nothing down and a soon to be unaffordable variable rate mortgage.

Now you have to have pretty good credit and some kind of actual downpayment.

[Guest 44M]

now they are coming up with a new trick "lease purchase"..wich is pretty much the same thing, you put about $5000 down and lease the house, your payment is ,let say, $1500 and out of that $500 goes towards the down payment, the whole thing is based on hope that one day buyer will have good enough credit to get a financing for the house...another scam people have to watch for...

Db

[Guest smithbell81]

I am moving from Maine to Tennessee. I have never even been out of Maine, (crazy, I know.) But I've decided that I need a change and I think that that would be a good one. I have family and friends down there, so that seems like a plus to me. So, if someone could help me in arranging a mortgage place in Tennessee than it would be better for us to stay there together.

Edited October 25, 2011 by MacGyver

[Clod Stomper]

I know a mortgage person. Very trustworthy. To what part of the state are you moving?

If you're interested, PM me.

Will