Democrats Want to give 15 Billion to Banks that Forclose on Property? - Page 3

cheapseats · 05-10-2008, 08:24 PM

Quote:

Originally Posted by Rigged

Its not the housing market, its fucken banking. When banks stopped following the basic formula for lending that is when all the trouble started.

Ever hear of NIL loans? NO INCOME loans? how the hell do you loan people money who have no job no income no way to pay it back?

The problem is BANKS, people got greedy. Then investment bankers instead of putting money in boring and safe US Tbills they started putting cash in secondary mrket for a quick buck. Then all the big hedge fund masters of the universe did the same thing. Boom! bottom falls out...major crisis.

I realize all of that.

That is a given.

Where do we go from here, that is the question.

We are not only in this shit hole because of a conscienceless, greedy Few, they are pretty much still doin' their thing. True and embarrassingly enough, there are woefully uneducated Many who are also prone to greediness and shiftiness, but they don't cook the shit up. They just fall for it. Human nature is human nature.

Crime pays, baby, in America...cook up a plot, get you some slick operators, make a fuckin' fortune while the gettin's good. Get caught? Slap on the wrist, or maybe a bail out. This is Wild West stuff...take no prisoners.

That said, the recession we're not in ends when real estate hits bottom.

There is no reason, none, to spend money on beautification of foreclosed properties, so that the banks can fetch a higher price...further mitigating what should RIGHTLY be their losses.

Let those houses go at rock bottom prices. Instead of people lower on the totem pole buying them, people even lower might have a shot. Fixer uppers. That's how that works, and there are PLENTY of people who'd like a whack at that.

As best I can tell, our government officials are now thoroughly let-them-eat-cake-storm-the-Bastille corrupt, or...staying true to governance by Lesser of Two Evils...they are completely inept as well as cowardly.

Rigged · 05-10-2008, 08:42 PM

Quote:

Originally Posted by cheapseats

I realize all of that.

That is a given.

Where do we go from here, that is the question.

We are not only in this shit hole because of a conscienceless, greedy Few, they are pretty much still doin' their thing. True and embarrassingly enough, there are woefully uneducated Many who are also prone to greediness and shiftiness, but they don't cook the shit up. They just fall for it. Human nature is human nature.

Crime pays, baby, in America...cook up a plot, get you some slick operators, make a fuckin' fortune while the gettin's good. Get caught? Slap on the wrist, or maybe a bail out. This is Wild West stuff...take no prisoners.

That said, the recession we're not in ends when real estate hits bottom.

There is no reason, none, to spend money on beautification of foreclosed properties, so that the banks can fetch a higher price...further mitigating what should RIGHTLY be their losses.

Let those houses go at rock bottom prices. Instead of people lower on the totem pole buying them, people even lower might have a shot. Fixer uppers. That's how that works, and there are PLENTY of people who'd like a whack at that.

As best I can tell, our government officials are now thoroughly let-them-eat-cake-storm-the-Bastille corrupt, or...staying true to governance by Lesser of Two Evils...they are completely inept as well as cowardly.

Can't argue with you there.

The idea of "beautification" is just a do-nothing (but lets create the illusion we are) measure.

This is not one of those solutions where we can just throw money at. What we need to do is get people IN the houses. Legally speaking, this can be done at minimal expense. The equity on a house can be recovered by the mortgagor, up to 2 years after a foreclosure has been effected (this is a form of equitable redemption). It was very common 20 years ago, but has fallen out of favor with banks for some reason. You would think on a common sense level that holding unprofitable parcels, they would want to contrive SOME way of getting rid of them. Its not like they are giving them away, the mortgage is revived but what a good peice of legislation would do here is give these people prime rates. Or a reduced rate if they make under a certain income. I know all the free mrket ppl will not agree with fixing rates but in this situation necessity of getting people back in their homes takes precedent in my book. After all we can't be good little consumers living in a refrigerator box.

BillCosby · 05-10-2008, 09:08 PM

Quote:

Originally Posted by Rigged

Actually its funny you mention that, I wrote a major paper in graduate school on the Glass-Steagall act. It wasn't published, for a few reasons that wouldn't surprise you, I predicted that something like this would happen. Of course nothing close to the subprime crash, even some years ago now the data was moving that way. I didn't want to be a snob before but I graduated from Emory and one of my professors there was on a committee 10 years ago when they looked at repealing the act. He advised against it. But all the toity Harvard, AIE, and Brookings assholes got on board and in bed with the devil. So it is written so it is done...

Its really a fucken shame.

Yay, my hunch was right.....

lol

Yea it was a real shame...... All the genius got together & fixed everything for us........

I have posted on it before but no one responded so I just let it go.... & it being clinton1 was prob asking a lot= to accept that he may have done something that caused/ greatly contributed to this........

I feel sorry for all the ppl that are losing their house........ I wish that we had a way that many more of them could keep their house/ their dream........ There was never any real danger of the big boys loosing out here....... It's always the little guy that gets it in the end.....

DanS. · 05-10-2008, 09:19 PM

Quote:

Originally Posted by Rigged

Can't argue with you there.

The idea of "beautification" is just a do-nothing (but lets create the illusion we are) measure.

This is not one of those solutions where we can just throw money at. What we need to do is get people IN the houses. Legally speaking, this can be done at minimal expense. The equity on a house can be recovered by the mortgagor, up to 2 years after a foreclosure has been effected (this is a form of equitable redemption). It was very common 20 years ago, but has fallen out of favor with banks for some reason. You would think on a common sense level that holding unprofitable parcels, they would want to contrive SOME way of getting rid of them. Its not like they are giving them away, the mortgage is revived but what a good peice of legislation would do here is give these people prime rates. Or a reduced rate if they make under a certain income. I know all the free mrket ppl will not agree with fixing rates but in this situation necessity of getting people back in their homes takes precedent in my book. After all we can't be good little consumers living in a refrigerator box.

I don't know...I don't think that anybody will be living in a refrigerator box just because they lost their house...they're just out the equity(negative..LOL) and can rent....

Doing otherwise would just reassure people that they can make all of the mistakes they want and the govt. will be there to make it all better...who needs a credit rating? Who needs to learn about finance?

I'm pretty much in favor of letting both the people who borrowed and the companies that lent(mostly investment firms not regulated banks right?) take their lumps and move on...that would probably be the biggest deterrent from this happening again...at least until a couple generations pass and everybody forgets.

But the fed bailing out the investment firms should have been done under the condition that they met the same regulations as banks...

Also...this should be a rude awakening that our schools need to teach finance...not the econ that they teach in highschool that the semester finally culminates at the point they're eventually get to supply and demand

DanS. · 05-10-2008, 09:24 PM

Actually....just as a side note...many people do not want their homes and are purposefully letting it go into foreclosure...despite being able to pay for them...

BillCosby · 05-11-2008, 01:07 AM

Quote:

Originally Posted by DRS112

Actually....just as a side note...many people do not want their homes and are purposefully letting it go into foreclosure...despite being able to pay for them...

Yea that is pretty dumb in most cases.........

Here the prices have really dropped but they will be back......

It will be quite a while before that credit rating & bankruptcy will be.......... It is a tuff choice some ppl have to make........

anhailla · 05-11-2008, 02:45 AM

Quote:

Originally Posted by DRS112

Yep...I agree....at least in part...

I am with you on this DRS...I am a bit confused myself.
and if you ever put me on the same side as Bush again, I will hunt you down and...

you know the rest.

(Malky thinks I am an assassin)

Malkavian · 05-11-2008, 07:45 AM

anhailla · 05-11-2008, 08:19 AM

Quote:

Originally Posted by Malkavian

Malkavian · 05-11-2008, 09:19 AM

Quote:

Originally Posted by anhailla

05-10-2008, 09:24 PM	#25 (permalink)
DanS. Administrator Join Date: Aug 2007 Posts: 8,380 My Mood: Thanks: 140 Thanked 312 Times in 232 Posts	Actually....just as a side note...many people do not want their homes and are purposefully letting it go into foreclosure...despite being able to pay for them... __________________ PUMA What really got me into this was a negative: lurking on DU I was absolutely repulsed by the disgusting attitude of the obots - speaking as a global politics junkie I never encountered anything like it. I shudder to think of the malignantly orgasmic, frenzied glee that they must be feeling now
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05-11-2008, 07:45 AM	#28 (permalink)
Malkavian Milked Join Date: Oct 2007 Location: Resting in Peace Posts: 4,760 My Mood: Thanks: 479 Thanked 113 Times in 87 Posts	__________________ Woof!
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