McCain wants to buy up bad mortgages...
McCain wants to buy up bad mortgages and refinance the loans for buyers only in trouble...
so those who make their payments and being responsible get no help in this plan. should those who can't afford their home get a hand up?
now after hearing all of this BS about redistribution of wealth mccain supporters please explain to me how you think this is ok?
hell every one is in trouble!
Hella stock member!
I dont think it is ok. I do think that with the credit and liquidity issues the banks are having that they would be inclined to refinance with a fixed rate. If the govt is going to do anything, they should be looking at ways to assist the banks in aquiring SHORTTERM cash to get these loans refinanced to something the owner can afford.
For the people that make 50K a year and bought the 400K house, there is no helping them. They were retarded to purchase these houses in the first place and they wont be able to afford the house no matter how reasonable the banks are.
wow i made this thread yesterday. i dont like the idea at all
Epic Foxbody Thread Crew Member #10Originally Posted by AlanŽ
Who would be buying up these mortgages and refinancing them, The Federal Reserve?
In this day and age debt is fast becoming a commodity that can be bought and sold. At least with regards to struggling third world economies, larger nations have bought up their foreign debt and refinanced it to the country at a lower rate with a scheduled repayment plan. The end result is that the country ends up with a better deal but is still unable to make payments due to slow economic growth or high inflation.
I could see this acting out similarly domestically. You refinance these bad loans to the people who already cannot pay them and all you do is keep that capital out of lending institutions for a longer period of time. I think this is a terrible idea; if our inflation rate increases the loans will become harder to pay off and the buyers will be further indebted. Extrapolate this theory further and there could be another run on the bank, similar to what expedited the intense fall of the old Stock Market Crash.
My realist side says that the homes should be foreclosed and auctioned off but in an era of low monetary confidence we do not have buyers with free capital to invest. That way the banks can cut their losses and move on, the affected families will be displaced for the short term but eventually will find their financial equilibrium by moving into smaller homes or apartments.
Conversely my idealist side says to wait it out but economies take years to harness back to profitability and we need short term relief, not a short-term surplus of homeless families.
Last edited by GTScoob; 10-09-2008 at 07:14 PM.
02 WRX Sport Wagon
Stop paying your mortgage y0! Fuck Obama..
I want to keep my gun..
57..57....57....57....57
QFT. yo julio put some input in my thread.
where are the rest of mccain guys... mike, willum, etc
This is going to have a really bad effect on the home market.
Epic Foxbody Thread Crew Member #10
ya beyond the economy...
Lol, isn't that basically the same thing as the bailout plan that he just walked out on? Somehow I see this version of a "bailout" to be more expensive.
i have mixed feelings
1) It bothers me that we are bailing out people that got loans they couldnt afford in the first place. Like if i go buy a $50,000 car right now, but only make $50,000 a year, and all of the sudden i cant afford the payment, are you going to buy that car from me? are you going to tell me the car is now only worth $15,000 so i can keep it? makes no sense to me.
2) The good side is that it will stabilize the mortgage people, so their $500,000 house will be valued at $300,000 or what its worth now, they will be able to refinance to stay in the home at that price level. The "$200,000" in value lost, is minimal to the bank since most of these it was interest payments made first to the bank, so its not the like the bank will really be losing that much money. The way i understand it that home will be worth $300,000 now, buyer stays in, and the banks will get the "$200,000" "LOST" from the FED as part of the bailout package.
Problem is the FED will now own that $300,000 home. So over 30 years, they will make money. But what about if the house still continues to go down in price? what if because of the economy people start losing their jobs an those $300,000 homes are forclosed on anyway? then this crisis will look like a walk in the park.
I guess the real question is, if we tank, and bottom out, crash, whatever, how serious will the effect be? if we bail people out, , will it really help, or just make it manageable for 6 months an we will be right back where we started.
GOOD: If we buy the bad mortgages up the banks can start lending to qualified people and it will help
Bad: If we dont buy out, itll be hard for anyone to get financed on anything, banks will continue to go under.
Again how bad wil it get.
Tough call
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Oh an this isnt redistribution of wealth. we arent taking rich peoples money and giving it to people that cant afford their mortgage. What we would be doing is taking money from the FED and refinancing those individuals.
With the bailout already passing the banks will survive, at least the big ones will
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well FED is funded by tax payers... i think it would be quite disturbing to know i have a 5% interest rate and my neighbor who can't afford now has a better interest rate than me only b/c they made bad $ decisions.
to me this is worse than taxes... b/c taxes you aren't going to see anyway and we need them to pay for gov. this rewards people who make bad decisions... if i would of known this i would of bought way out of my means so now i could afford a big new home for cheaper then my neighbor.
I'm not well versed in this whole issue but from what I've read on the bailout plan and its implications, we're in trouble either way.
I dont agree with it,why should we be responsible for people that made bad choices? The housing situation is what got us in this mess, because of stupid people in america, that buy stuff they cant afford.Im with paul i dont see how that is fair for someone to get a better intrest rate then me, i have never missed or made a late pymt and now i will get stuck with a high rate then someone that is about too loose their house!!! F THAT!
You're mixed about it cause it has John McCain's name on it, if it was Obama's plan it would be called socialist.
Please. If it was obama ( who had a similar idea iirc) I'd have said the same thing.
Has nothing to do with politics I wasn't really for the bailout either.
Id expect a better response than some partisan bs
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lol
Can't believe you said that
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