What do you think of the Real Estate Bailouts?

[toesuf94]

Today the Government signed legislation that will effectively make John and Joan Q Public (you and I) PAY mortgage lenders BILLIONS of dollars of tax money for STUPID loans to people who were not qualified to own that much house in the first place! Due to the Overwhelming amout of defaults in the housing market, the buyout was enacted in an attempt to stabilize the economy and the housing market. So, did you buy a house that you cannot afford? Here comes the Government to the rescue! Made a bad loan to a guy who could NEVER pay you back...you are safe too! Now that the housing market is safely put to rest by the wonderful people in Government, let's look at the next failing item in the free market, and in the case of mose American's, the second largest expenditure in our yearly budgets...the car.

What else has lost 30% of it's book value (in some cases more) in recent months: the SUV and full size trucks that were American's favorite mode of transportation until gas hit $4 a gallon. Ford, GM and Dodge are reeling from the loss of sales of these units, and American consumers are flocking to small, efficient cars and hybrids, usually made by foreign makers. The Government has set a precident by offering the buyouts to homeowners and lending institutions, so it is the natural progression of this thought process that buyouts for owners of large SUV's, the dealerships that cannot sell large inventories they have on hand, and the PRODUCERS of the units that have lost so much value over the last few months due to the high price of gas, and save their butts as well? Chysler just ended the funding of leases due to high losses of residual values of its cars and TRUCKS/SUV's. I think it is now time for the government to help those who cannot afford the cars they own/lease/drive and the producers and sales people of those very same cars and trucks. Why not? Is the CAR not what our VERY CULTURE is formed around? Time to step up and bail us all out of our gas guzzlers or issue us all Hybrids to get to work.

The above is nothing more than a satirical look at the world in which we live in right now. I live in Cedar Rapids and there is talk of buy-outs for flooded out people who had no insurance. One person actually called into a talk show yesterday and proposed a local tax increase to cover the buy outs! So, if you follow this train of thought for a second (and this goes for New Orleans and coastal areas affected by Katrina as well) you do not need to be responsible for your own property any longer, buy insurance or protect yourself in any way. If that body of water or storm hits you, the Government will swoop in, provide you with shelter, buy your house (for a max of $28,500) and then set about rebuilding your town for you in an ecological way...all for free! When exactly was socialism enacted in this country, because I missed that meeting! What do the rest of you think of the mortgage deal and what is going on with the Government seemingly funding EVERYTHING? I am not wanting to go partisan here...not blaming one side or the other BOTH sides are clearly to blame here. Seriously, when did America go Socialist on everything?

[caddycruiser]

It really is dumb. Actually more than that, but I'm trying to be quick & clean.

Granted, there are a few cases where the circumstances are terrible and having some kind of assistance, MAYBE I could see. But otherwise it's the continued line of NO personal responsibility or accountability. Don't read loan docs and sign away, for a mortgage that adjusts all over and is 5x what you can afford? Nah, certainly not your fault. Buy something, from the start, that's way more than you can afford? Nope, apparently not your fault either.

Lose your job(s) due to downsizing or whatever and not be able to afford your very reasonable house, and get foreclosed? Again, that's an awful situation, but it's certainly no one else's responsibility. It's hard, but you knew going in when you signed what could happen if that IF ever happened.

It's like anything. Another coupon package for what--not all--but largely are mass idiots, who continually get bailed out for anything.

Funny analogy with the SUV's, but I wouldn't doubt something. Then again, it's not YOUR fault you drive a huge truck you can't afford but also can't trade in...someone else forced you, gun to the head, to do it and keep it. You know, of course.

Stupidity and over (or just way under...) thinking at its finest.

[loki]

I think everyone should see the movie, Meet the Robinsons. YAY another failure!!!!!

just imagine if the depression never happened, or whatever "killed" tons of those auto manufacturers, and all those great car manufactures were bought/kept alive somehow or even got bigger. Duesenberg to rival Bentley.

yay buyouts, for all that can't afford things the tax payers will get stolen from to pay for them. :puke:

[Newbiewar]

well i think it needs to be done

if you look at japan, im not sure when it happened but japan didnt help its banks, when they were in need and forclosures forced home prices fell to 50% of their value and stayed that way for 20 years... it is necessary... it was an unneccessary risk that lenders choose...

the intentions were somewhat good, i mean as long as home prices increase, it really doesnt matter if they make good on the loan, the home will pay for the price difference, and the investors win!... but if the subprime was given to far too many for the housing boom to continue... home prices needed to fall in certain areas like southern California... where the average home was over 500k, and the average income was below 35k... you cannot make that work.

but my family continues to purchase real estate in the so-cal area, and continues to watch their nest egg grow.

[Toyota.vs.GM]

I think its good for GMAC, i think it will help GMAC return to profits at late 2009, which is good for .

[enzl]

The bailouts wouldn't bother me as much IF the government funded some, part or all of the program by prosecuting predatory lenders and the jokers who were valuing these homes at insane prices...

The new American motto is "It's not my fault"...you can see it at work everywhere: Our overburdened legal system, insurance claims, investment banking bailouts.

Don't worry, its just the honest, taxpaying, bill paying suckers that lose in this system.

[toesuf94]

The bailouts wouldn't bother me as much IF the government funded some, part or all of the program by prosecuting predatory lenders and the jokers who were valuing these homes at insane prices...

The new American motto is "It's not my fault"...you can see it at work everywhere: Our overburdened legal system, insurance claims, investment banking bailouts.

Don't worry, its just the honest, taxpaying, bill paying suckers that lose in this system.

Hey wait! That's me! CRAP!

[daves87rs]

The bailouts wouldn't bother me as much IF the government funded some, part or all of the program by prosecuting predatory lenders and the jokers who were valuing these homes at insane prices...

The new American motto is "It's not my fault"...you can see it at work everywhere: Our overburdened legal system, insurance claims, investment banking bailouts.

Don't worry, its just the honest, taxpaying, bill paying suckers that lose in this system.

Sad, but so true...

[michaelv13]

The bailouts wouldn't bother me as much IF the government funded some, part or all of the program by prosecuting predatory lenders and the jokers who were valuing these homes at insane prices...

The new American motto is "It's not my fault"...you can see it at work everywhere: Our overburdened legal system, insurance claims, investment banking bailouts.

Don't worry, its just the honest, taxpaying, bill paying suckers that lose in this system.

Well said.

[FUTURE_OF_GM]

I really hate it...

But at the same time, I really don't want to see people homeless.

The housing crisis is yet another CULTURAL problem with america. One that the government will never fix, yet we will have to pay for.

[caddycruiser]

I really hate it...

But at the same time, I really don't want to see people homeless.

The housing crisis is yet another CULTURAL problem with america. One that the government will never fix, yet we will have to pay for.

I wouldn't go so far as to say cultural, rather than just mass stupidity and zero responsibility. Then again, that seems so widespread, maybe it is a cultural thing...

No one can fix it, especially not the government and yet another handout program, only the people themselves can. Problem is, they won't, and the same people--not that all are bad--who get themselves into such messes don't annoy themselves with caring about how to fix things.

[balthazar]

Humanity sure isn't getting any smarter...

And for those of you seeing the larger picture in utter dismay, brace yourself for the potential Socialist Tsunami of all time heading our way.