molson_golden2002 Posted September 23, 2008 Posted September 23, 2008 What if we bailout Wall Street and housing prices continue to fall? Does this bailout in any way address that issue?
DC Tom Posted September 23, 2008 Posted September 23, 2008 What if we bailout Wall Street and housing prices continue to fall? Does this bailout in any way address that issue? They're trying to make it address that issue. But housing prices should fall, because they were overinflated to begin with.
JoeFerguson Posted September 23, 2008 Posted September 23, 2008 What if we bailout Wall Street and housing prices continue to fall? Does this bailout in any way address that issue? I do not think the bailout will work. It is only prolonging the inevitable.
GG Posted September 23, 2008 Posted September 23, 2008 They're trying to make it address that issue. But housing prices should fall, because they were overinflated to begin with. I think the right way to do it is for government to buy $700 bn of mortgages and then negotiate with the homeowners to write down the value of the mortgages to $350 bn to give people help. That will fix everything.
John Adams Posted September 23, 2008 Posted September 23, 2008 I do not think the bailout will work. It is only prolonging the inevitable. The apocalypse?
molson_golden2002 Posted September 23, 2008 Author Posted September 23, 2008 I think the right way to do it is for government to buy $700 bn of mortgages and then negotiate with the homeowners to write down the value of the mortgages to $350 bn to give people help. That will fix everything. I can't believe that idea has not been flaoted in the press yet.
finknottle Posted September 23, 2008 Posted September 23, 2008 I think the right way to do it is for government to buy $700 bn of mortgages and then negotiate with the homeowners to write down the value of the mortgages to $350 bn to give people help. That will fix everything. Buy the mortgages, don't renegotiate. Yes, people will start to miss their payments and be threatened with missing their payments. But the government will proceed at the speed of government, so by the time they get around to actually forcloseing - 5 or 10 years say - most people will have dug themselves out one way or another.
/dev/null Posted September 23, 2008 Posted September 23, 2008 I do not think the bailout will work. It is only prolonging the inevitable. Fergy FTW
GG Posted September 23, 2008 Posted September 23, 2008 I can't believe that idea has not been flaoted in the press yet. You're right. The idea is so idiotic that it is surprising that more press hasn't gotten behind it.
molson_golden2002 Posted September 23, 2008 Author Posted September 23, 2008 You're right. The idea is so idiotic that it is surprising that more press hasn't gotten behind it. As idiotic as showering money onto the irresponsible lenders that made the mortgages
DC Tom Posted September 23, 2008 Posted September 23, 2008 As idiotic as showering money onto the irresponsible lenders that made the mortgages That's not how this bailout's going to work.
ExiledInIllinois Posted September 23, 2008 Posted September 23, 2008 They're trying to make it address that issue. But housing prices should fall, because they were overinflated to begin with. Under ten years ago... I had a gut instinct that housing would fall. I always said that when the Baby-Boomers start retiring, they will need cheaper housing. I refused to move into a bigger house, etc... etc... I personally just plugged away and paid down on my house to almost nothing... Took care of my unsecured debt years ago and lived well below my means. All the while my income rose. I know I am screwy... But... The sooner we get through this Baby-Boomer generation and they are all dead in the ground... The better off we will be.
bills_fan_in_raleigh Posted September 23, 2008 Posted September 23, 2008 Under ten years ago... I had a gut instinct that housing would fall. I always said that when the Baby-Boomers start retiring, they will need cheaper housing. I refused to move into a bigger house, etc... etc... I personally just plugged away and paid down on my house to almost nothing... Took care of my unsecured debt years ago and lived well below my means. All the while my income rose. I know I am screwy... No sounds like you were practical and didn't get lured into all the nonsense of 800K houses, 50K cars etc. I have seen my investments grow at a nice steady state and hopefully after this all clears will be able to enjoy retirement we have planned for.
meazza Posted September 23, 2008 Posted September 23, 2008 As idiotic as showering money onto the irresponsible lenders that made the mortgages How are they showering money? They're loaning the money to who needs it and putting heavy restrictions on those that participate.
molson_golden2002 Posted September 23, 2008 Author Posted September 23, 2008 How are they showering money? They're loaning the money to who needs it and putting heavy restrictions on those that participate. Ya, its no big deal at all
blzrul Posted September 23, 2008 Posted September 23, 2008 Watching some of the testimony now ... some pretty harsh statements about the degulation and the fact that these institutions were left alone with no oversight to "do the right thing". What were they thinking? Never mind. Then Bernake gets up and says "well I am an anthropology major with no Wall Street experience BUT...". Good lord. It floors me that this stupid government made SUCH a point of making it difficult for John Q. Public to file for bankruptcty, while enabling giant, bumbling and dishonest corporations to do so. There has to be something, or the bottom will fall out. But I want BLOOD - those companies have to pay dearly or it will happen all over again.
DC Tom Posted September 23, 2008 Posted September 23, 2008 Ya, its no big deal at all Where did he say it wasn't a big deal? The government's not loaning anyone money either, as far as I know. They're buying up illiquid investment vehicles from financial companies. Not a bad plan, either...there's a reason several private equity funds have stepped up and asked if they can get a piece of the action.
DC Tom Posted September 23, 2008 Posted September 23, 2008 Watching some of the testimony now ... some pretty harsh statements about the degulation and the fact that these institutions were left alone with no oversight to "do the right thing". What were they thinking? Never mind. Then Bernake gets up and says "well I am an anthropology major with no Wall Street experience BUT...". Good lord. It floors me that this stupid government made SUCH a point of making it difficult for John Q. Public to file for bankruptcty, while enabling giant, bumbling and dishonest corporations to do so. There has to be something, or the bottom will fall out. But I want BLOOD - those companies have to pay dearly or it will happen all over again. You're already getting blood. Bear, Lehman, and Merrill no longer exist. Morgan Stanley and Goldman Sachs should, as well. All the major investment banks have effectively evaporated in about a month. How much more blood do you want? The only company I can think of that hasn't sufferred enough for this is Countrywide. Shouldn't take oversight to "do the right thing", anyway. Bozos lent money on ridiculous terms to people that couldn't pay it back, simply because there was money to be lent. Doesn't take government regulation to see that's an idiotic business model.
meazza Posted September 23, 2008 Posted September 23, 2008 You're already getting blood. Bear, Lehman, and Merrill no longer exist. Morgan Stanley and Goldman Sachs should, as well. All the major investment banks have effectively evaporated in about a month. How much more blood do you want? The only company I can think of that hasn't sufferred enough for this is Countrywide. Shouldn't take oversight to "do the right thing", anyway. Bozos lent money on ridiculous terms to people that couldn't pay it back, simply because there was money to be lent. Doesn't take government regulation to see that's an idiotic business model. She wants Richard Fuld's head on a plate...
taterhill Posted September 23, 2008 Posted September 23, 2008 You're already getting blood. Bear, Lehman, and Merrill no longer exist. Morgan Stanley and Goldman Sachs should, as well. All the major investment banks have effectively evaporated in about a month. How much more blood do you want? The only company I can think of that hasn't sufferred enough for this is Countrywide. Shouldn't take oversight to "do the right thing", anyway. Bozos lent money on ridiculous terms to people that couldn't pay it back, simply because there was money to be lent. Doesn't take government regulation to see that's an idiotic business model. Do Mortgage Brokers working at Uncle Jimmy's House of Loot Mortgage Brokerage have any oversight on their apps?
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