I agree, example I can give, I was going to get a loan for a new boat a few weeks ago. I was wanting to wait unitl winter after I got some other bills paid off, but circumstance moved me up. When I tried, I couldn't get a loan becasue my bills take up aproximatly 52% of my income and they will not loan me more than a total outcome of 45%. I was willing to stretch a little bit for a few months, maybe do with out some other stuff if I had to. But luckily they brought me to my senses. I can seriously see how a person can get the big eye and bite off more than they can chew easily. But I dont think teh goverment should help.

 

There is no way that I will support a bailout for this situation. Democrat or Republican or Bi-Partisan, it doesn't matter. Every market is subject to occasional adjustments. You play, you pay. The inventory in the housing industry dropped as everyone scooped up the available units. Creating a home building boom. People got wealthy. Creating a buying/selling frenzy. People got wealthy. People went to work and made lots of money swinging hammers. The tax base for local governments soared. Services were provided to residents by these municipalities. People got into these homes on very weak loans. This trend could not sustain itself. The buyers had the expectation to hold these homes long enough for the value to increase and sell them for a tidy profit. They treated these purchases as an investment. Investments, other than savings bonds, are not guaranteed by the government. And like most investments they are subject to take a loss. With risk comes reward and sometimes failure.

Following the collapse of the tech stock bubble in 2000 did the government jump in and bail out all the day-traders who lost their life savings and were left with worthless stock? Umm...No. Did this market adjustment crush many investors and strip them of their homes that they took out mortgages on so they could play the markets? Yes, most definitely.

Now the people that I truly feel sorry for are the established homeowners that saw their property taxes soar due to the artificially inflated home values. Many were forced to sell or had their homes seized for unpaid taxes. They were not part of this. They were innocent victims of this money grabbing scheme.

 

In many cases, the buyers were not investors, but took risky, no money down 'sub-prime' loans which had aritifcially low payments for a 1 - 2 year period.

Their intent was to live in the homes long term and not to resell. However, they wanted to use their market value increase as their downpayment on a new, conventional mortgage when the 'teaser' loan expired. When the property did not go up in value and the real interest rate kicked in and their payments took a huge spike, they got behind.

These first time buyers will claim they were mislead by their mortgage and real estate brokers, and sometimes they were. But most were just greedy and really could not afford a house.

 

I don't buy it that these people did not look at their purchases as investments. With the emphasis of future planning now being placed on the individual rather than a pension from a company, most people understand that their financial outlook rest firmly on their own shoulders. Almost any financial planner will tell you that your best investment is the purchase of a home. With all of the free advice available online and television I seriously doubt that the word investment didn't cross the lips of these buyers at least once before closing. I also disagree that today's buyers look at a home purchase as long term. But rather, they intend to use the equity built in their current home to aid in the purchase of their next property.

 

It still seems to amaze me how some people can support Bush. The man is a complete moron who in 8 years ran this country into an almost depression state.
__________


here is the stupidest statement of the decade. Typical liberal lies and hate. Ran the country into an almost depression state? We have the best, strongest economy ever. but you think it is close to a depresion? Get off what your smoking dude. As far as the war, I think we are doing the right thing there. With missteps along the way. To gain an ally in that part of the world is a VERY good thing. Loosing is not an option.. except for the liberals who demand we loose.

 

Where in the hell did that come from?????

 

Are you guys blind? Best economy ever? Thats why we hear everyone on this site whining about gas mileage and gas prices. Keep thanking your buddy Bush for that. Yeah, that man was such a great thing to happen to our country, keep up the good support for the tyrant riddled Bush family. Looks like we have a lot of republicans on this site.

Lets support a war that kills innocent soldiers of this country every day, leaving their wives widows and children fatherless. Great job, lets support George W. Bush. Oh wait, he must still think they have "weapons of mass destruction." Good way to ride his coat tails to believe we had to go to war. I know what it is, you guys must be the ones that get huge tax breaks because of him.

 

Oh God, here we go again.

 

Nobody is talking about Bush?


Just Fordscrew and Chris?





If your going to nail Bush for the housing market, then I guess you have to give him credit for all the years values were increasing by double digits?


The fact is, The war in Iraq doesnt have jack to do with the housing market.

Home values were increasing faster then peoples incomes, sooner or later people were going to run out of money. The problem is that instead of lenders turning people down, they just found really risky ways to fund loans.

Sooner or later, the chit was going to hit the fan.

Put down the reefer and the tamborine and try to grasp some understanding of "economics".


The only political slant on this intire thread is some people bashing Hillary.

Thats because this billion dollar bail out is her idea, and I have a problem with being responsible and getting taxed out the **** for my trouble. Especially when those tax dollars go to bail out idiots who dont put any thought into their own personal finances.


I wasnt put on this earth to keep idiots in nice homes.

 

I do agree with certain aspects PODunk. Bush was brought up by others in page one, and there are republicans bashing democrats. Well in the last 8 years those republicans havent exactly pointed this country in the right direction. That is unless you are an ammo manufacturer or oil company. Wait, isnt bush involved in both? That seem coincidental.

Back on topic, yes the bailout will not work, its just a proposed plan to reel in the votes. Democrats and Republicans are bother guilty for doing that, and realistically, how many actually follow through with them?