The BIG Bailout

[docholly]

The only way any of it would make sense would be that each 'at risk' mortgage was re-evaluated.. that an assessor would go to the house and give a "true value" to it.. not the inflated value of 2-3 years ago, then the banks would adjust accordingly. So if some fool making 65K per year bought a 500K house which at true market value would be worth 280K, then the banks would assess it at 280K, give a mortgage based on that @ whatever rate the "powers" that be come up with. I've never gotten over the fact that workers at $10-12.00/per hour thought they could actually afford a 1/2 million dollar house. Too bad if they lose their equity.. that's the price for being sooo stupid.

It's not going to do much good to just "throw" money at the existing problem. I also don't like the fact that Paulson et.al. at the Treasury would not be accountable for the billions. When the president 1st announced it, i swear I could see the Puppetmaster (cheney) holding his strings ..so they could have a grand send off with gold falling out of their pockets. I was NEVER ever a conspiracy theorist prior to Bush/Cheney..always my country..right or wrong.

With WAMU going under last night, can Wells Fargo, Citibank etc be far behind???

True Republicans believe in a market based economy, supply and demand and capitalism. less government, more states rights. Government bail out is the last thing they would want which just reinforces my long held belief that Bush/Cheney are impostors. Fake Republicans.

Something has to be done, but throwing 700 Billion dollars at the same people who caused this, might not be the answer.

[SirMoby]

Originally Posted by docholly

True Republicans believe in a market based economy, supply and demand and capitalism. less government, more states rights. Government bail out is the last thing they would want which just reinforces my long held belief that Bush/Cheney are impostors. Fake Republicans.

Look at what the OCC in conjunction with the DOJ during 2003 -to 2005 to make sure that these bad loans stayed profitable for a short period of time.

The problem is that through new OCC auditing standards that were changed for the first time in 140 years allowed banks and hedge funds to value paper loans not even at the $500,000 value of years ago but the future estimated value of perhaps $1,000,000. While they hold a loan on a property worth $250k they could actually declare $1,000,000 in assets which would allow them to borrow 10 times that or basically 40 times what they really had.

When people wonder how Bush's daddy's company The Carlyle Group could lose so much money over night, or suddenly Bears Sterns could have $30,000,000,000 in bad debt it's not because people are defaulting, it's because the OCC allowed them to declare 30, 40 and some estimates 100 times the value of real assets.

Normally banks and funds had to have 10% to 15% in actual assets for what they were borrowing. From 2003 until now they only needed 1% to 3% so if values on that money borrowed dropped 2% these companies were broke.

I've been trying to remind people since 2000 of the S&L Crisis, the families that profited and the law makers in power. No one cared.

[Greenguy]

Originally Posted by SirMoby

Look at what the OCC...

What does XXXJay have to do with any of this?























is there really a need for a down here?

[JustRobert]

Originally Posted by docholly

So if some fool making 65K per year bought a 500K house which at true market value would be worth 280K, then the banks would assess it at 280K, give a mortgage based on that @ whatever rate the "powers" that be come up with.

Oh No, If they were stupid enough to buy an overpriced house they should be responsible enough to pay it ALL back. Nobody forced them to buy it, it was there choice.

Nobody wants to take responsibility for their actions any more. Pisses me off

Now if the banks want to cut a deal with these stupid buyers and say extend the 30 yr mortgage to 45 or 60 yrs so it reduces the monthly cost to be more maneagable, but they still owe the $500K, so be it.