Thomas Roach
to me
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Sep 14 (16 hours ago)
I love the title of your post, no really. It tells alot about you.
You just don't get it. A government bailout will make the situation worse. Yes, the FED is guilty. Why? Because they kept rates low for far too long. It caused housing prices to jump to enormous heights. It was mostly the rich who benefitted. A bailout sets such a bad precedent that the government is there to bail you out. Yes, there are people who got put into homes they should not have. many knew what they were doing and many did not. Instead of the government and tax payer taking on the burden, why doesn't Countrywide put them in a loan at 6%? Why? Oh, because it might cut into their profits? They made a ton of money the last few years and THEY CAN afford to help these people out.
So if you are saying that the FED created this environment, then how is lowering rates going to fix it? Since it was low rates that caused it? Have you seen dollar prices lately? It's at a 15 year low versus the Euro. Have you seen the price of gas or the cost of food? If you believe in helping people in need then you will understand that sacrificing the dollar to keep some people in homes they can't afford anyways is a bad idea. Yes, I feel bad that these people lost their homes and the companies who put them in those loans should try to help not the government. People need to take responsibility. Yes, many will lose their homes. It will be sad, but unfortunately that is a better solution than sacrificing us all.
Does that make sense?
I'm all ears Mr. Aptly named Adem Lament.
BTW, I don't have any kids but thanks for makig some assumptions! I also sold in 2005 when I saw some idiot was willing to pay 3x more for my place than I paid 4 years prior. I knew things were ridiculous then. When I mentioned to people that we were in a bubble they called me crazy and told me how savvy of an investor they were, how real estate is a cant lose investment, and how much money they were going to make. Many were my friends. They own many homes they are now upside down on. Do I think they should be bailed out? No, they need to learn a valuable lesson. The lesson is there is risk out there. All these people made homes unaffordable for many people. The same people you claim to be sticking up for, but I guess it is ok to sacrifice them all to try and save a few. A few that probably can't be saved anyways.
If they could barely afford 1% interest rates, then how can the government help? The only ones they help by shifting the loans to Freddie and Fannie is Wall Street since they can recover their money why you , the taxpayer, has to bail out Freddie and Fannie because they are GSEs or backed by the government. Such a bad bad precedent. When does it stop?
1 comment:
Roach has a point. The dollar is being slaughtered out there. Inflation is going up if we consider (and we SHOULD) prices of oil and food; and will most likely to continue to go up. The labor market is weak, and wages are stagnating. Seems we're headed for stagflation. Wall Street was happy with the Fed rate cut....for a couple of days. Now it's back to reconsidering the situation, especially after the saudis, venezuelans, chinese and others are disassociating their economies from the fate of the dollar. The Fed's move, likely intended to help the banks and not the average "homeowner," is hurting us all...But perhaps the Fed had not choice. Either decision would spell doom.
Oh the poor dollar. Hurts me to see it suffer so! (seriously. No sarcasm here).
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