# Mortgage bailout..

I know this is probably a stupid question, but instead of paying \$700 BILLION to bail out the lenders, how about just use that money, pay off everyone’s homes so that they own them free and clear, and tell the banks and insurance companies to go get fucked; they are out of business.

You would have a thriving middle class with a shitload of money to inject in the economy and a bunch of dickhead corporate types out of work.

What is the downside to this?

700 billion isn’t enough to buy everyone’s home.

\$700 billion is approximately \$2000 per American.

\$700,000,000,000 / 68,000,000 Home Owners = \$10,294

I can’t find the number still making mortgage payments, someone else care to finish the math?

Let me see if I understand you: you’re proposing that the government pay off all mortgages. Is that right?

So, if person A owes \$900,000 and person B owes \$30,000, we just pay off those amounts. How about person C who saved for years to put 20% down on a home and made sure he had enough of a cushion, and person D who got into a home he couldn’t afford and signed the papers with \$0 down with a super low variable rate mortgage with a balloon payment? Let’s say they both owe \$300,000. We just pay them off? And how about person E (as per a current pit thread) who acted responsibly and has been putting money away so that he could one day buy a house in a prudent manner, he gets squat for exhibiting the type of behavior we should be encouraging. All while those who acted irresponsibly win a little lottery.

Now if THAT is what you’re proposing it may very well be the most unfair, dumb-fuck stupid idea I’ve ever seen on the se boards.

There does exist the possibility that you are trying to foment a Socialist revolution and win large swaths of people over by redistributing the wealth on Day 1. In that case, it’s THE most stupid.

I’m not really proposing this… I’m just saying that the current \$700 Billion (with a B) bailout still keeps the dumbfucks in business.

Socialism? If we want free market capitalism, then businesses should have to live with the results of their piss poor business decisions. What part of free market capitalism results in a \$700 Billion (with a B) government bailout?

I’m not talking about fairness or responsibility. I’m not talking about all homeowners. Just pay off all debts held by these companies and tell the execs to go suck dick for a living. Get results from the money by having consumers with extra coin in their pockets.

Again, not really proposing this, but what is wrong with my proposal?

The point is to make it possible for people to pay their own mortgages . They have to be making steady payments to build up the economy.
We still have not discussed credit debt. That balloon is still floating…

The value of all the mortgages in the U.S. is \$12 trillion (with a T).

Actually, \$700 billion won’t even pay off the subprime mortgages. It’s only enough to pay off the subprime mortgages that are currently in default.

Right. But since we are paying anyways, we don’t need the “steady” mortgage payments. Fuck Lehman Brothers, AIG and others. Pay off the subprime mortgages (again, leaving aside the moral argument) to get that part of the economy off the table forever. Let the assholes who tried to profit from subprime mortgages lie in their own beds of filth.

Then, these subprime homeowners, instead of being on the brink of losing their homes, will now have several thousands of dollars per month to inject into the economy.

Put the new regs on the homeowners that are bailed out. They will gladly take it. Fuck the lenders who caused this mess in the first place…

So to you, lending money to people whose qualifications basically amount to their word makes you teh eeevilest corporate CEO that deserves to go “suck dick”. Accepting a loan from someone, signing a contract, and then failing to pay them back as promised makes you worthy of receiving a chunk of \$700 billion?

Where’s the logic in that?

So punish the lenders who allowed the liar loans and made dumb moves, and reward the homebuyer who lied on the loans and made dumb moves. Yep makes complete sense too me. But why stop there, lets give those with credit card debt with high interest a bailout. And while we are throwing around money how about that car loan, and college loan etc. And my cable bill, since the magic money printing press is already warmed up.

Since we are talking about fucking those who caused this mess in the first place I hope you’re not voting for a Republican or a Democrat in the upcoming elections. I mean unless you just want to fuck a business and not everyone responsible.

You may be interested in Paul Krugman’s take on this, summarized in the phrase “No Deal”.

http://krugman.blogs.nytimes.com/2008/09/20/no-deal/

http://www.brookings.edu/opinions/2008/0919_treasury_plan_elmendorf.aspx

A brief article contrasting the pros and cons of the proposed bailout versus an alternative plan which uses equity investment in the financial institutions. I don’t think there is a clear-cut winner and I would like to see more details about the proposed plan before attacking it.

Does the U.S government have the authority to seize property at wholesale prices? Who says these houses are worth 12 Trillion anyway? Couldn’t the government simply seize these assets, pay 700 billion, and be done with it?

• Honesty

Was anybody out there too smart for this crap, didn’t buy into it? How hard could that have been, anyway, to research and ascertain who was selling the mortgages that were shaky, and who was playing by the code? And isn’t that, like, their jobs? Jobs for which, I am given to understand, they are handsomely compensated.

So, those who actually did good, they are gonna end up pretty much in the same place as the guys who screwed the pooch, and the rest of us as well? No, come to think, they’ll probably be a bit better off, they’ll get to keep whatever bonuses they got, which would be bigger than the guys who didn’t make so much, because they weren’t as crooked. Or stupid.

And those poor schmucks from Lehman Bros, standing by the freeway entrance with signs saying “Will amortize for food” Who cares for them? And someone should, 'cause I sure as hell don’t.

So if the US govt is going to be taking on all this bad debt, does that mean they get the actual properties that were defaulted on? What happens to all those houses now on the market?

Well, for example Goldman Sachs made a lot of money betting against sub-prime mortgages in 2007 wiping out their earlier mortgage-related losses. The responsible employees were handsomely rewarded.

Enjoy,
Steven

Don’t be silly. Giving money to people that might need it en masse is socialism. Giving money by the bucketload to investment houses that are bankrupt is fascism. Socialism bad. Fascism good.

I believe Fannie and Freddie will become the instruments of remortgaging. They will try to find ways to keep people in their homes and making payments. It will be a nasty business, deciding who should stay in their homes. It will require a new analysis for millions of mortgages. If it works. they will have people making payments to Freddie and Fannie. It will be short term very costly. But after awhile the money will come in to feed the system. They will not buy the mortgages at face value. Someone will have to determine what they are worth nowadays.
The mortgage will have to be owned by an American Company.
I was reading the particulars late last night.