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by TexasTruBlu from Southern Denton Co

Last Post 1 day, 10 hours Ago


If This Is Change, Count Me Out
Oct 3, 2008 | 12:21 AM
Category: Political
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"we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe. That would keep people in their homes, actually help banks by keeping it from going under"--Joe Biden, on the debate...

I must admit I was busy writing tests, but I did hear this quote. Is there anyone who was sleeping this past week and didn't get that much of the meltdown was due to credit being extended to people that defaulted on loans? And Obama/Biden would allow a court, presumably appointed or elected, to wave their magic gavels and lower the interest and/or the principle on a loan. Banks are businesses. They have to make a profit in order to open the doors and pay people a living wage.I'm not talking about CEO's I am talking about tellers and cashiers and loan officers-the little guys.Interest on loans keeps the lights on. Likewise, the money that those silly fools like me put in the bank, is used to fund loans. The interest is paid back to people who have savings in the form of interest as a benefit for letting other people use their money. so Obama and Biden seem to think that we should continue funding subprime loans, and when they go belly up, nobody gets hurt. When small banks go under, somebody has to pay the bills. And as it goes up the food chain, that somebody is usually the taxpayer. With this kind of policy on economics, we would have to pass another gigantic bill in four more years. Is this really the kind of change that will improve your life? Never mind the idiocy of trying to hoodwink the public to the idea that 95% of taxpayers will get a refund AND we will still have all these shiny new programs. Folks, it doesn't add up. And as I keep trying to tell you There Ain't No Such Thing As A Free Lunch.
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donaldtrump read my blog
Oct 3, 2008 | 1:36 PM

Who deserves that money more? The banks, the predatory lenders, or the people?
I was reading a different blog where a salient point was made. What happened to the local bank owning the mortgage to your home. Like the Baily savings and Loan in "It's a Wonderful Life"? Now our home loans are diversified. There are people all over the world markets who own little bits of our homes.
TexasTruBlu read my blog view my photos
Oct 3, 2008 | 7:12 PM

But here's the problem-Congress mandated that lenders make loans available to populations not traditionally served. While they may have meant minority or low income populations, what resulted was a series of steps that opened the floodgates for absolutely unqualified buyers to get loans for more than they could ever pay back. And just like the Bailey S&L-my savings are in your house, which means when the bank goes belly up, so do I. Biden's comment is troubling because it's a statement that they will do EXACTLY the same type of thing that created this mess. While it is popular to say the banks are evil, very few of the workers in banks make anything near a millionaire's salary. And in past year, bank jobs have been iffy and sporadic. So who really loses when the judiciary can cut the principle AND the interest. Answer: We do.
donaldtrump read my blog
Oct 4, 2008 | 12:24 PM

The Real Deal

So who is to blame? There's plenty of blame to go around, and it doesn't fasten only on one party or even mainly on what Washington did or didn't do. As The Economist magazine noted recently, the problem is one of "layered irresponsibility ... with hard-working homeowners and billionaire villains each playing a role." Here's a partial list of those alleged to be at fault:
The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.

The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.

Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.

Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.
donaldtrump read my blog
Oct 4, 2008 | 12:25 PM

Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.

The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.

An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic.

Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up.
The U.S. economy is enormously complicated. Screwing it up takes a great deal of cooperation. Claiming that a single piece of legislation was responsible for (or could have averted) the crisis is just political grandstanding. We have no advice to offer on how best to solve the financial crisis. But these sorts of partisan caricatures can only make the task more difficult.

–by Joe Miller and Brooks Jackson

factcheck.org
TexasTruBlu read my blog view my photos
Oct 4, 2008 | 2:24 PM

I know from personal experience that mortgage brokers will talk up a higher mortgage. Ours tried to do it to us, tried to convince us to commit to twice as much of a loan because of our good credit. We said no. And that's something ALL borrowers could have done. But we live in a society where expectations exceed the necessary elbow grease. We live in a society where Oprah says that middle class women should have the same expensive styles and accoutraments she buys and that every student should get a free college education, even if they didn't work at all and barely graduated high school. So we are reinforcing the idea that there are no consequences for failure, that any debt can be reneged on and that Mommy Government will be there to save you. If that's not an pure example of Nanny State mentality, then I don't know what is.
DfDeportation read my blog view my photos
Oct 4, 2008 | 5:49 PM

donaldtrump
Oct 4, 2008 | 9:24 AM The Real Deal

So who is to blame? There's plenty of blame to go around, and it doesn't fasten only on one party or even mainly on what Washington did or didn't do. As The Economist magazine noted recently, the problem is one of "layered irresponsibility ... with hard-working homeowners and billionaire villains each playing a role." Here's a partial list of those alleged to be at fault:
The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

Hard working homeowners? Don't you mean...Illegal Alien chuntes?

Mortgage Tax deductions? Don't you mean.....Tax Loopholes?

You're too funny dude! Keep whorin' and pimpin' for yo MACK DADDY!!! ha ha ha
TexasTruBlu read my blog view my photos
Oct 5, 2008 | 7:03 PM

As a hardworking homeowner who pays my bills, I have a big problem bailing out people who got sweetheart loans because Congress forced lenders to make loans available to what was labeled "underserved populations." Mortgages are contracts. Only adults can sign a contract. Adults are supposed to have some sense and are also supposed to be held accountable. What happened to people making decisions based on common sense instead of the popular notion that we are all supposed to live like Oprah? Sorry, but I have no sympathy for homeowners who bought over their heads. They read the docs, they signed the papers. While it's easy to blame banks and CEO's the bottom line is that people bought into a fantasy that they "deserved" the best. Guess what, somebody, sometime, has to pay.
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TexasTruBlu

I am a teacher, a mother and wife and I like to think I am a pretty good citizen. I read ALOT. I also write a good deal on various blogs. I appreciate a chance to respond to what we see in the news. I think that by posting our opinions we can probably find that everyone is more alike than we are willing to admit. Face it, people just like to argue. I would also like to say how much I appreciate having a forum for my views.

Member Since: 7/25/2006


 

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