April 12, 2007

Subprime Bailout? You want to FUC*ING BAILOUT HOUSING GAMBLERS AND BANKS? Well, I think HP'ers have a thing to say about that!


Here's Jim Saxon, Schumer's enemy and leading Republican on the Joint Economic Committee that is considering this bullsh*t bailout legislation

Here's the blowhard idiot Charles Schumer's contact form.

Here's the proof that Schumer is one of the most corrupt Senators in history (contributor list), which reads like a who's who of the subprime crash bankrollers:

1 Goldman Sachs $350,850
2 Citigroup Inc $227,550
3 JP Morgan Chase & Co $195,900
4 Credit Suisse First Boston $191,294
5 Morgan Stanley $186,500
6 Bear Stearns $154,250
7 Merrill Lynch $125,100
8 AOL Time Warner $114,000
9 UBS Americas $108,500
10 Lehman Brothers $107,000

Here's an article today on this potential legislative disaster

Amid new signs that the housing slump is worsening, key Senate Democrats said Wednesday that hundreds of millions of dollars of new federal aid may be needed to assist homeowners at risk of foreclosure.

The call for federal involvement from New York Democrat Charles Schumer, chairman of the Joint Economic Committee, came on the same day the National Association of Realtors forecast that the median price for existing homes will decline for the first time since 1968 as a sales slump worsens.

“We will be proposing significant amounts of dollars,” Schumer told reporters after being asked if a large federal bailout may be needed.

68 comments:

anonymous wimp said...

Good news for Casey Serin and his ilk? Do I have the privelege of using one-third of my income (taxes) to bail out someone who committed felonies (liar loan applications) in order to buy 2.1 million dollars worth of houses, seven in all?
How about the fraudsters/flippers in Phoenix, Las Vegas, Sacramento who bought 20 houses at a time using felonious loan applications? Do I get to 'bail them out' too?
So much for capitalism. "The risk has been priced in already"--turns out they were right--there was NO RISK! Big daddy is here to save the day.
All so corrupt. So predictable.
The previous poster's comment about a 'banana republic' seems more and more correct the more I think about it.

Mort said...

Dog meat.

Mort said...

Here are a few excuses the neo-cons have used over the past few years to steal from the people:

9/11
The Iraq War
Osama Bin Laden
Hurricane Katrina
The Housing Bubble
The Housing Crash
The PPT
The MIC
Homeland Security
Halliburton

I hope we don't have any more disasters, we can't afford to have them rob us again so quickly. The latest theft ploy here.

Anonymous said...

.
.
Homedebtors won't see a penny of this bailout. The cash will go directly to the banksters who will then foreclose on the HDs anyway. And all of the money will come from the taxpayers.

After that, the banks will write off their losses on their taxes and let the properties decay as in Detroit. Taxpayers will make up the difference by paying higher taxes - one way or another.

In the future, the government will have 'make work' projects to 'reinvigorate' the areas where these empty houses are causing a blight. This too will be funded by taxpayers.

Finally, the banksters will sell the land and new condo developments in the reinvigorated areas back to the people for a tidy profit and ship the money offshore to avoid paying taxes.

Been there.
Done that.
Bought the T-shirt.
Gave it away.
Bought it again at Goodwill.
Used it as a rag.
Threw it away.
Found it again at the dump.
Framed it.

IB

veritas_faust said...

Even IF they bail out FBs, which likely won't happen, the amounts will be trivial against the impact.

This pre-election posturing and frankly I find it stupid. If the Govt. wants to place a temporary moratorium on foreclosures where there was a verifiable case of fraud on behalf of the lender I could be sympathetic.

But lets be real in recognizing that calling for a bailout and actually creating the governmental apparatus to service that bailout would not come in time to save the next million or so people who will be displaced by foreclosures this year.

Does the Senator think that we should sacrifice the first financial tsunami victims and then go in to help the survivors?

This is fantastic policy, if I knew I could make lousy investment decisions and then get my money back if I lost it all then I would have been listening to Jim Cramer for the last couple years.

ShumaDaTuma said...

Schumer wants to take our guns so why should he leave us our money?

Greg said...

I sent the following note by email to PA senator Specter:

In relation to Senator Schumer's proposal to bail-out homeowners affected by bad ("subprime") mortgages, I'm writing to express my hope that Senator Specter will be very careful in considering such proposals. While a few homeowners seem to have been legitimately misled, I believe the majority of those affected were simply overeager to capitalize on perceived free money of varying types. 80/20 and other 'cereal box' mortgages were key in leading to unprecedented value runups that made homes less affordable for those buyers trying to do "the right thing" in saving for a traditional down payment and 30-year fixed rate mortgage. Persons who benefited (at the time) from such mortgage availabilities should not be financially propped up now by other taxpayers, such as myself. This will only lengthen the inevitable real value correction in progress.

declining_value said...

mot

you do realize that Schumer is about as opposite ideologically then the neo-cons you are trying to link into this baloney. Pull the wool off your eyes are realize not every evil person/idea in the world has a [R] next to their name!

Keith has got this one right on the money, this isn't politics, it is all about contributors calling in the chips from the politicians that they have supported/owned.

If anything you should thank McCain-Feingold for allowing us individuals to be "priced" out of the contribution market in the name of restricted free speech.

GameOver said...

I just submitted this.

The fact that you would even CONSIDER a bailout for people with subprime mortgages who are in trouble is an insult to those of us who have acted responsibly.

I am 26 years old bought a house and had the foresight not to over-buy. My wife and I could have qualified for type of mortgage, 30yr fixed to IO-Neg-Am in order to buy whatever McMansion we wanted for us and our kids. Had I known there would have been a government bailout I'd have leveraged to the hilt and gone wild.

Why not?

You are encouraging irresponsible and reckless behavior and it makes me sick.

Are these really your contributors?
1 Goldman Sachs $350,850
2 Citigroup Inc $227,550
3 JP Morgan Chase & Co $195,900
4 Credit Suisse First Boston $191,294
5 Morgan Stanley $186,500
6 Bear Stearns $154,250
7 Merrill Lynch $125,100
8 AOL Time Warner $114,000
9 UBS Americas $108,500
10 Lehman Brothers $107,000

Obviously you are bought and paid for.

Disgusting.

Anonymous said...

Those BASTARDS! Screw it HPers,get ready to fleece the sheep.The Vast majority are doomed to the Hampster Wheel.Their children will be paying for the whole thing.Get ready for the 100,and 1000 year bonds.

SHAKSTER-

Rich Cracker said...

Just more of the White Man's burden. By the time this is over and the dust settles, it will be a crime to have more than $100 in a bank or savings account, or a gold coin in your pocket. Thanks a bunch all you dumb asses who put these thieves in control of Congress in '06.

Frank said...

This is an outrage, and it shows how stupid the Democrats really are.

They've barely settled into office, and this is the bullshit they're proposing. They're living in a fantasy world in which they believe that the majority of the American people are left-wing socialist wackos like they are, but that just isn't true.

The ONLY reason the Democrats took over is the Iraq war. Other than that, middle America is solidly conservative. Just look at the outrage over illegal immigration. A nation of liberals would be saying, "Open the borders and let them in!" However, that's not the case, and the same public that's furious over immigration will not let this socialist plan stand.

Sorry, but the assbags who bought on those risky loans out of vanity and ego knew EXACTLY what they were getting themselves into and the pain of foreclosure and bankruptcy is they only way they're going to learn their lesson and start being financially responsible in the future.

www.scottsdale-sucks.com

Anonymous said...

I am all about no bail out, Keith, but a good percentage of fellow citizens have been scamed due to their own ignorancy and predatory lending paractices that left them poorer than poor with no chance to climb out of deep debt and bankruptcy. However the flippers, especulators, felons (liers in the applications), et al, should not only not be bailed out but bear the consecuences. The moral question becomes, How to identify one group from the other?

brokersleaveyoubroke said...

If you read some of the comments in the CNBC poll with the question, should the government bail out sub prime borrowers, they are all very negative. I think when Schumer sees how many votes he'll lose on this issue he'll quietly drop it. I think (and hope) that they're just pretending to be concerned. How can they help sub prime borrowers keep their houses when there are so many Katrina survivors who are homeless and have not been helped? How can they give borrowers millions of dollars when the FBI says they dont have the resources to go after most of the mortgage fraud cases.

Anonymous said...

Anon @ 9:26pm has a point. I don't begrudge a person who bought a home to LIVE in, not something to flip and got screwed with loans that they may not have fully understood. Ever sit with a mortgage agent? I have and they are not always being truthful.

If a person bought the house to live in and can prove that, bail them out or allow a moratorium on foreclosures. If the person is a flipper, doesn't live in the homes, etc...f-them.

THEY drove the market up to levels that have put us all in this bad situation. These idiots deserve nothing. Legitimate homeowners shouldn't be thrown to the wolves.

Anonymous said...

Survey at John Edwards' blog site:

"Should there be a moratoraium on subprime foreclosures?"

http://tinyurl.com/yttawf

http://blog.johnedwards.com/story/2007/4/11/19449/7331

The post is not from Edwards himself, but if enough people vote maybe it will be brought to his attention. Is Edwards brave enough to break ranks with Dodd?

Mort said...

F the FBs, that is their role in life. They made the flippers rich, let them be homeless. Schumer is a pig, he is owned by the banks. Fraud and speculation must die a grisly death.

Mark in San Diego (sometimes) said...

Hey, now Casey can get a free government bailout - HP'ers won't have to send him money - right on schedule for another Resolution Trust. . .leaving for Zurich on Wednesday - will take another 10K (legal) with me again . . .glad to be holding Swiss Francs. . .at least I will have some money left to buy Ramen noodles!

Anonymous said...

They are responding to the fact that the banking and monetary system is bankrupt. They can only roll this bankruptcy over so many times. And each time they've done gone with these kinds of hair brained policies they've only made the effects of the bankruptcy that much worse. But it's not a real estate crisis its a crisis of the entire system which is being reflected in real estate.

Doesnt anyone ever remember August 15th 1971? That was the day President RMN canceled the Bretton Woods agreements and set money loose on the economy. Now that floating exchange rate system enacted by Nixon's backers is hopelessly bankrupt.

Hitler is the bankrupt bankers prefered option now.

Al Sharpton said...

"By putting people in new loans all we are doing is throwing leverage after leverage," says Joseph Mason, a finance professor at Drexel University and an expert in the mortgage market. "These programs are not a good idea. They just don't work."

Anonymous said...

Just more of the White Man's burden. By the time this is over and the dust settles, it will be a crime to have more than $100 in a bank or savings account, or a gold coin in your pocket. Thanks a bunch all you dumb asses who put these thieves in control of Congress in '06.

By Rich Cracker, at April 12, 2007 8:59 PM
___________________________________

What are you talking about? It's the morons who voted for the Republithugs in 00 and 04 who created this whole mess in the first place. Remember, Clinton didn't give a rats as$ when housing crashed in the nineties. You must be from a red state, go eat some pickled pigs feet. I'm a Libertarian. I say screw corrupt Democommies and Republithugs alike.
F_ck#ng Gov't. Stay ou of my business and let a free economy weed out the idiots.

jymkata said...

I've already sent a letter to Chuck as well as the entire New Mexico deligation letting them know that this is a bad idea.

Right now you need to contact every one of your friends and family and let them know it will be their tax dollars going to bail out fraudsters and corrupt banks. Let them know they need to contact their representatives in Congress or else this thing will pass.

We can beat this thing, but word has to get out!

Anonymous said...

"I don't begrudge a person who bought a home to LIVE in, not something to flip and got screwed with loans that they may not have fully understood."

and what are the people that LIVE in rentals- subhuman?

I make 120K and because of them I cannot afford to buy and do not see a time when I can anytime soon- I FUCKING BEGRUDGE THE HELL OUT OF THEM!!!

Anonymous said...

I am all about no bail out, Keith, but a good percentage of fellow citizens have been scamed due to their own ignorancy and predatory lending paractices that left them poorer than poor with no chance to climb out of deep debt and bankruptcy. However the flippers, especulators, felons (liers in the applications), et al, should not only not be bailed out but bear the consecuences. The moral question becomes, How to identify one group from the other?

April 12, 2007 9:26 PM
___________________________________

You don't. In this case, throw out the baby with the bath water. It's not a life and death situation, the victims will learn to be stronger and more resilient from a lesson well learned. So they destroy their credit and can no longer live on credit like they have been(It might actually be a blessing in disguise). I'm not paying more taxes to bail someone out for their own stupidity.

serindippity said...

but a good percentage of fellow citizens have been scamed due to their own ignorancy and predatory lending paractices that left them poorer than poor with no chance to climb out of deep debt and bankruptcy. However the flippers, especulators, felons (liers in the applications), et al, should not only not be bailed out but bear the consecuences. The moral question becomes, How to identify one group from the other?

Easy, investigate and prosecute the scammers who committed crimes.

Prima facie evidence of scammer versus scamee is whether they are involved in multiple properties instead of just one, authentically owner-occupied property.

If there are some "sympathetic" f@cked borrowers, their bailout check in full is being allowed to avoid criminal prosecution in return for turning state's evidence.


Mrs Serin, you reading?

Anonymous said...

Hey I want a new boat, maybe Chuck can throw in a few bucks.

CashFLo said...

Where are all the Free Market trumpeters when big businesses fail? Those of you on this blog who whorship Almighty Capitalism AND agree that failure is part of the process, I commend you for being consistent. Seems most "invisible hand of the market" people suddenly love gummint intervention when the fat cats are in trouble. Hypocrites.

Anonymous said...

Forget hearings. Bailout already Started.

http://articles.moneycentral.msn.com/News/1BillionToBailOutHomeowners.aspx

Anonymous said...

when are you lefties on this site gonna realize... the Dems are just as morally bankrupt as most GOPers.

we need a third party.

a viable third party is the only thing to save the country.

Anonymous said...

A moratorium on foreclosures of any type
will totally f**k up the
secondary market for mortgage backed securities - which is what is really funding the bubble.
Those who want to see the absolute MAXIMUM f**kup should support moratoria. If the democrats are stupid enough to go this route, we should support them as they hang themselves.
A moratorium prevents lenders from getting any money back and creates vast uncertainty in the whole process... and by delaying a sale, it likely means the recovery will be smaller - all of these items f**k the whole process by which bundles of loans are priced and traded. It throws a wrench in the machine and the machine starts stripping its gears.

Anonymous said...

BWA HA HA HA HA HA HA!!!

BWA hA hA hA hA HA HA HA!!

Renters, you lose once again. First you lost on the greatest investment opportunity in a lifetime by renting while everyone was making a killing.

Now you lose again by being taxed so everyone can keep that money while you continue renting.

Do you admit defeat now? No price drop, a federal bailout...how much more do you need to figure it out people? THERE NEVER WAS AND NEVER WILL BE A HOUSING CRASH.

fvck schumer said...

Is anyone surprised that both New York Senators, Clinton and Schumer have called for a taxpayer-funded bailout of the Wall Street banks that made billions of dollars in securities thru the wreckless lending bubble?

Goldman Sachs gave out billions in 2006 to their executives and now they are asking for a bailout funded by the overtaxed working schmucks. The Democrats betrayed me and millions of others who put them in power. They better watch out in 2008. The tide can turn very quickly.

Anonymous said...

Talk to everyone you know about the proposed bailout. Nobody is for it. Not Republicans, not Democrats, nobody.

The people in foreclosure will not be homeless. It is not a tragedy. They'll rent houses, for much cheaper than the mortgage they paid. Who knows, after the crash they may be able to AFFORD their old house FOR REAL someday!

The bailout is OBVIOUSLY for the banks and nobody else.

Also, Senator Dodd (wants to be President!) was on the house Banking and Financial Committee while this mess was brewing, wasn't he?

Can you imagine that? He KNEW what was happening and yet he let it happen. Our country is in a HUGE financial mess now because of the bank and finance sector, which Dodd was supposedly overseeing.

Does he sound like Presidential material? Someone who missed this mess in the making for the past several YEARS?!

Ditto for Schumer: He was Chairman of the Joint Economic Committee but ignored this the whole time he was serving?

We do not need politicians who are as incompetent as these guys. Throw them out of office. They've been contributing to the death of this country for years and now their plan is to run it even further into the ground with this stupid nonsense.

- EX Democrat (as of last month when they all started falling all over themselves to get in on the Bank/Lender bailout after sitting on their a$$es for years while this developed.)

Mention this to EVERYBODY. Everybody needs to know what these jerks are planning.

- EX Democrat

kitchenstove said...

Anonymous 1, 2, 3, 4, whichever...you do realize that the link to your bailout story is dead. Maybe it's an omen.

Anonymous said...

The pubs are going to destroy us with this war. The dems are going to destroy us catering to societies losers.

The solution has to come from the outside, Arnold!!!

ramen ronin said...

You people and this alarmist bullshit. Hell everyone knows this is a site for the damn overreactionaries. Hell, I made a killin'last year, flippin' properties. Made BOO KOO duckies.
Now if yer through whinin and doomsayin, I'll jes git to my dinna.

Casey. Casey, you dam fool boy, quit bouncin on that silly blue ball and pass me another plate o' dem ramen noodles.
much obliged.
>slurp;slurp<
kinda tasty-now if I had som o that kool aid to wash these down with...

Anonymous said...

If there is a bailout, I'm going to max out my credit cards (over 200k in available credit) buying gold and silver. I'm moving all my cash and precious metals into a ground safe and defaulting on my mortgage too. Then I'll declare bankruptcy because I'm sure the first step in the bailout will be easing up on bankruptcy strictness.

On record I'll look like a credit addict loser so congress will feel guilty and give me what I want.

Then I'll apply for "relief".

Sweet.

There's always a way to play it.

Anonymous said...

I make 120K and because of them I cannot afford to buy and do not see a time when I can anytime soon- I FUCKING BEGRUDGE THE HELL OUT OF THEM!!!

I'd say that makes you a bitter renter then eh?

You have no idea how much joy I am taking in this bailout. It's like Christmas came early. Not for me personally since I've owned my home since 1997 and is almost paid off. No, it's simply watching all the bubble heads who thought they were about to get houses at 50% off suddenly realize it's not happening. Sorry friends, you will be stuck renting F O R E V E R!!

WaitingToBuy said...

http://tinyurl.com/2u4jwt

In a sign of hedge funds’ growing clout in other spheres, in late January, Senator Chuck Schumer called twenty or so of the top hedge-fund managers and invited them to the Upper East Side Italian restaurant Bottega del Vino. It was supposed to be a friendly chat—Schumer’s message was, you talk to us about what’s going on, and nobody has to worry about too much interference from regulators. It’s chilling to think of all that secret power assembled in one place, like the Cosa Nostra Apalachin summit in 1957. Attendees included Jim Chanos of Kynikos Capital, Rich Chjavascript:void(0)
Publish Your Commentilton of Chilton Investment Co., Stevie Cohen, Stanley Druckenmiller, Paul Tudor Jones II of Tudor Capital, and David Tepper of Appaloosa Management. The combined assets under management of those attending had to have been $200 billion.

gun n. cognito said...

i wrote Schumer, and then Jim Webb in VA who trumpets himself the everyman/middleclass hero.

FlyingMonkeyWarrior said...

Anonymous 1, 2, 3, 4, whichever...you do realize that the link to your bailout story is dead. Maybe it's an omen.
++++++++++
Now try.


http://tinyurl.com/33z7f6

Anonymous said...

When are you lefties on this site gonna realize... the Dems are just as morally bankrupt as most GOPers.
we need a third party.
a viable third party is the only thing to save the country.


"You got a republic - IF you can keep it" - Ben Franklin'

"This form of government is wholly unsuited for immoral people"

News- the peeps have figured out how to milk the system, and they don't care who or what they elect as long as they get their share.

I hope and pray for a 3rd party that would actually care for the Constitution, but I wouldn't bank on it.

Kitchenstove said...

Flyingmonkeywarrior, good article. LOL, I see an omen there too, and it still ain't a good one. They've now gotten fixed rate loans at a "lower" rate that is still bound to be much higher than the one they initially started with and a lot of them still won't be able to afford that.

These programs will be like putting a bandaid on a bloody stump. As some one mentioned in another post of the blog (mentions this in the article too), all these things will do is prolong the inevitable.

Anonymous said...

"Sorry friends, you will be stuck renting F O R E V E R!!"

Yes, and houses will cost $10 million a square foot while wages remain the same. The disparity will shoot off exponentially, and owners will be able to buy entire planets, nay solar systems, while stupid renters eat grubs. FOREVER is a long time, pal.

Doktaire said...

QUOTE " am all about no bail out, Keith, but a good percentage of fellow citizens have been scamed due to their own ignorancy and predatory lending paractices that left them poorer than poor with no chance to climb out of deep debt and bankruptcy. "

Simple answer, DON'T BE IGNORANT, read what you sign, if you don't understand it, don't sign it until you do. Jeez, and if there is a bailout how will anyone learn this important lesson?

Doktaire said...

I should also say, honestly it is the Republicans who have contributed most to the deterioating financial situation of the USA. Please see this following, very enlightening graph.

http://zfacts.com/p/318.html

When will people wake up to the fact that the Republicans are the party of tax and spend, not the Democrats. I just don't agree with Schmuck Schumar, but other than that I'd go D every time.

Anonymous said...

Don't forget the dummycraps created the dotcom bubble that burst with trillions lost in the stock market. They are no angels either. John Corzine became a billionaire as CEO of Goldman Sachs during the dotcom scam and the dummycraps gave him a senate seat

glad2b priced out said...

If there is a bailout I say we just scrap capitalism and become socialist. What we currently have is not capitalism, it is serfdom where the workers are owned by the rich.

BTW- Why are the worst bubble areas in blue states where the people are supposed to be so bright and educated?

Anonymous said...

Yes, and houses will cost $10 million a square foot while wages remain the same.



and you will be The Last Home Buyer. congrats.

Anonymous said...

It would be morally justifiable to slit the throat of anyone voting in favor of housing bailout

whoisjohngalt said...

Greg,
Brilliant letter. At a minimum a government, taxpayer funded bail-out of these greedy, financially irresponsible looters is a temporary solution that will ultimately worsen this collapse. Worse yet, it also undermines the values that made America a prosperous country- self-reliance and personal responsibility. As a young professional that makes a high salary, I have been waiting (and saving money!) to enter the market until this sub-prime bloodbath works itself out and housing prices come in-line with salaries. Will I be forced to tap my down payment money to subsidize these idiots that bought homes on interest only loans and ARMS. If so, I am moving my money into gold and leaving the country.

Anonymous said...

"I don't begrudge a person who bought a home to LIVE in, not something to flip and got screwed with loans that they may not have fully understood."

and what are the people that LIVE in rentals- subhuman?

I make 120K and because of them I cannot afford to buy and do not see a time when I can anytime soon- I FUCKING BEGRUDGE THE HELL OUT OF THEM!!!

Amen Brother. You and I are in the same boat. I also make 120K, but have student loans exceeding what I make. My wife and I had to move recently and have put our house up for sale. Never borrowed from our equity, 30 year fix rate mortage after placing a down payment. Now we can't even sell our home and we are currently renting an apartment in a different state. I am proud to say I like ramen noodle, and live below my means (translation: I save a alot). Patience is a virtue lost in this society.

democraps robbed me said...

Have any Republicans called for a bailout of the Wall Street elite or has it only been Democrats? If you think the bailout will only cost $120 billion, you are dreaming. Everyone with an ARM will demand a bailout. It will be closer to the neighborhood of a trillion dollars. You get what you vote for...go Schumer and Clinton. I have already applied for Australian and Canadian residency. I will max out all my credit cards and stiff the IRS before I leave after cashing out my 401K, pension and IRA.

Anonymous said...

This bubble will have the following effect:
- the public will despise capitalism
- they will cry for a paternal govt to take care of them
- the solution that will be offerred is a new currency and a north american union
- the US Constitution will no longer exist

amusedspectator said...

Interesting how Schumer's crack now makes the Dems responsible for the bubble's implosion and the end of America as we know it.

I think Greenspan led the former bailouts of the derivative players (Long Capital Management, etc.) and implied everyone was an idiot who didn't refinance from fixed into an ARM. Who held Congress & the executive branch then? And then there was the Savings & Loan "bailout" led by Bush senior (in league with Demo Congress & Greenspan.

Schumer's "remedy" is certainly a stupid one, but I fail to see how his remark suddenly brings down the economy into socialism. The bail-out ("too big to fail") strikes me as bi-partisan. Maybe I missed something, though.

I should note that my wife and I bought 15 years ago, refinanced twice eventually to a 15 year fixed as rates dropped, then added a fixed refi two years ago when rates dropped to 5.75%. But Houston suburbia has hardly budged in the "bubble"--we already had that and our implosion back in the mid80's, when Bush senior architected the S&L bailout. If the banks start dropping, it will be interesting to watch what the administration & Treasury will do. I think helicopter Bernanke will fly to the rescue.

Anonymous said...

If you were dumb enough to sign the contracts without doing your homework, then on top of that buying more than you KNEW you could afford, then you deserve what's coming to you. Sell the house for a loss, pay your debt and go back to renting.

Bill said...

Just the notion of a bailout of this sort is sickening. I doubt that I could convey to you how fantastically irate this makes me. I happen to be a victim of the “housing boom” – unable to buy in the early stages, and unwilling to buy once it got out of control and became a veritable, disgusting, and blatant “pyramid scheme”. I’ve had to sit around patiently in a tiny little rental all these years waiting for the fundamentals to kick in and the correction to be made, while watching a bunch of stupid, greedy scumbags (borrowers and lenders) ruin the market for everyone else. And now THEY WANT ME TO PAY FOR THESE DIRTBAGS? Not only do I vehemently condemn such a proposal, but I feel that these bastards should be paying me for 6 years of inconvenience, and the robbing of my “American Dream”.
Taking my tax money for this crap is not just wrong, it’s patently criminal.

SF in Gibsons said...

It's frustrating seeing the taxpayer bailing out a bunch of greedy fools but let's not dump on them too quickly. We should acknowledge their contribution to the global economy over the last few years. We've all benefited from the global boom. But what now?

Anonymous said...

This whole thing is such crap. Why are there no reports of how much money these lenders MADE over the past 5 years on this crisis. Everyone is talking about the lenders that have gone of business, the loss write offs and the foreclosures that are happening. Everyone knows that these companies which most were subsidiaries of the big guys pulled out all the profits each month, even New Century. Do you think they are really suffering? Of course not. Check the financial records. Each month these companies suck out the profits and transfer them out of the company. Then when things go bad..hey bankruptcy is the great protector. Make these companies GIVE BACK the profits they made from the so called BOOM to ball out the suckers they took. I love this country..hire a bunch of lawyers to figure out a way to 1)screw the American public and 2)make lots of money 3)how to legally get out of it with the $$ still intact. Oh and lets not forget we need to form some kind of stupid sub committe in Washington to look into it for the next year.

Anonymous said...

This really pisses me off. F'n idiots want to take my hard earned money either by taxes or the hidden tax "running the out of control money presses". The fact is an average person will pay about $5,000 towards the bailout and higher earners will pay $25,000. This is absolute BS. This really angers me.


I sent the letter below to both NY Sen and local Sen and Cong

I DO NOT SUPPORT ANY BAILOUT OF THE SUBPRIME LENDING PROBLEM or any other lending problem. The free market will adjust and housing will adjust to the proper levels. Those that made the risky loans need to accept their losses. DO NOT TAX ME TO BAILOUT GREEDY CORPORATIONS!!!!! DO NOT SPEND A DIME OF FEDERAL MONEY! I pay a lot of taxes and save my money money. I don't want my tax dollars or this out of control government running the money presses and creating more debt. This country needs to start bringing down its out of control debt...start managing this country.

Kindest Regards,

Anonymous said...

You don't. In this case, throw out the baby with the bath water. It's not a life and death situation, the victims will learn to be stronger and more resilient from a lesson well learned. So they destroy their credit and can no longer live on credit like they have been(It might actually be a blessing in disguise). I'm not paying more taxes to bail someone out for their own stupidity.


I'm a far to the left leaning "liberal commie". I'm also hoping for "no bailouts". The comming housing collapse will be a dream come true for "lefties". It will make my goals so much easier to accomplish when millions of people are ripped from there homes and thrown to the street. Schumer is trying to maintain the status quo. he certainly doesnt want any radical changes in a system that he reigns over. Ironicaly, Schumer is your friend.
I laugh at people complaining that the've had to rent the last 5 years. You should be happy. By now you must have a ton of money saved and stellar credit. Within the next 2 years you should be able to exploit fantastic deals over the missery and stupidity of others. Really, most of you are just angry that you didnt get in on the bubble at the beginning and missed the boat, again.
But fear not. The financial reckage is comming and the extreme left will be there to recruit the dissolutioned. Honestly, your much better off rolling with Schumer but are to petty and short sighted to know it.

soma90405 said...

Oh please, the current administration is not going to bail out sub-prime lenders. They would rather enrich themselves and friends via war profiteering in the illegal, immoral war in Iraq. BTW, sub-prime lenders crashing had very little to do with the loans they made and more to do with said lenders being "under capitalized" lacking the ability to repurchase the few loans going BK. These loan programs were never intended to go beyond the first rate change. What made the programs great was people with weak credit were given "A" paper rates with the proviso they make all their payments on time for 2 years establishing good credit history which; would have enabled the borrower to refinance into prime rates.

Further more, the terms of these loans are ALWAYS completely spelled out on the note signed with loan documents. For a borrower to imply the terms of the loan was not fully disclosed is an outright lie. I just have one question... at what point do Americans EVER take responsibility for their own actions? Most would prefer to play the part of the "victim" which is pathetic.

cremater said...

Being as I am litterally on both sides if the fence here I thought I would make comment about the possibility of a bailout.

First, I was an Account Executive in the Subprime mortgage industry and so too played my part in inflicting this nasty condition on the FB's. Second, I not knowing any better, purchased a primary residence using the lender I worked for to fund my loan. I am now facing foreclosure on that home.

Since all of this happened I am no longer employed since so many lenders have gone out of business, not that I can say I am upset about not being employed by that industry anymore.

To the bailout in question. It should NOT happen! If there is any sort of legislation to help FB's that got into these loans it should only come in the form of a moratorium on forclosures. Maybe 90 days, maybe 180. Tax payers should not have to foot ANY bill that the lenders brought upon themselves.

Yes, some people took advantage of the system and commited fraud, others just wanted to live in a home they owned. But the lenders at every turn took advantage of peoples illiteracy regarding home loans and what was really ok to do and what was not.

The lenders made thier bed, now they should lie in it. Yes, alot of people will still end up being foreclosed on in the end, including me, too bad for us. If the poor helpless banks go out of business behind this, tough! Because of my being a bit unsavy, I will most likely lose my home, just for being dumb. The banks that intentionally brought these products to market, and the investors that gobbled them up for huge profits should not be saved for doing something intentionally.

No bailout! let the chips fall where they may and everyone pick up the pieces and move on, that goes for the lenders, the Wall Street investors and the borrowers. Find out where you are when it all falls out, and start over.

This coming from the guy that worked for the lenders as well as got screwed by them. I dont want sympathy for me, and I certainly dont want it for the lenders, banking institutions, investors or the sytem that made this mess in the first place.

Anonymous said...

I am totally oppposed to the bailout. Basically what this means is "let's punish the responsible tax payers so that their irresponsible next door neighbor gets a free meal". Why must those who handle their finances responsibly ALWAYS end up paying more than they should?

For those who claim they didn't know what they were getting into when they applied and obtained their mortgage loan that they couldn't afford, I have news for you: If you cannot comprehend what you are about to sign- then don't sign. If your mortgage broker or lender told you that you are going to pay 6% for a mortgage loan and the paperwork says 8%- again, don't sign. If you can't read english, then maybe you should learn before you go out and buy a house. I am tired of the endless excuses people are using as they fall into foreclosure and bankruptcy. Yeah, I agree that there are quite a few number of unethical brokers and lenders out there who will pull out all the tricks to make a paycheck at the expense of the consumer. However, we as consumers should know that the only person who is truly looking out for your best interest is you.

For those who are in foreclosure because they thought they could buy a house they couldn't afford in the first place, live in it for a few months and then turn around and sell it for a HUGE profit, I have news for you- it's your fault. If you were making an investment you couldnt afford from the get-go, then YOU are the reason why you are where you are financially and no one else should have to bear your burden. Have you ever heard the phrase "never bite off more than you can chew?" Well, my case and point.

As a homeowner, I think I pay enough taxes as it is. I even have to pay school tax and I don't even have kids! Why should my hard earned tax dollars help illiterate, down right ignorant people who are irresponsible with their finances? I just read an article stating that Bofa is sponsoring a program to help bail out people in foreclosure by giving them rates that are at least 1 percent below the national average. I have over a 700 fico score- where is my awesome below par interest rate? Again, punish the responsible people and reward those who are irresponsible.

If banks and lenders are griping about their delinquency ratios, perhaps THEY should be the ones to rectify this problem. After all, weren't THEY the ones who ultimately gave these consumers loans? Shouldn't THEY have done their due diligence so that they wouldn't have this issue today? Weren't THEY the ones who made HUGE PROFITS on the loans they made? All I can say is, "too f'ing bad". THEY created this problem so if anything, THEY should be the ones to correct it.

If the government really wants to help, then they should stay out of it and let the lenders and banks figure it out for themselves. If they end up in bankruptcy like New Century, then sobeit.It's not my fault people are in foreclosure so I shouldn't be the one to pay for it.

SchmattyBoy said...

Why are so many Americans always vying to be the desigated "victim" of the week?

There are no victims here. The first word in an ARM says it all. It is an ADJUSTABLE Rate Mortgage. How were they misled, the very name itself tells you what it is. Don't sign on the line if you can only make the payments during the sweetheart period, and then come sniffing around my wallet for a handout. I am busy working hard, saving hard, and exercising restraint in the car I drive and the apartment I rent so that I can do the homeowner thing the proper way. I am making sacrafices to achieve a goal.

Oh, and speaking of "homeowners" . Mr. Schumer and his brethren like to tell us what a tragedy it is when an American "homeowner" loses his home. But these people never "owned" the home to begin with. They never made a down payment. They have invested nothing of their own toward the owning of the house, they have low to zero equity. Figuratively speaking they don't even own the linen closet, understand.

What they did was borrow significanlty more than they could afford to. It is called overextending oneself, and it is a risky CHOICE to make. No one held a gun to their head. What they did was take out an Adjustable rate mortgage because they couldn't get enough money via a traditional 30 year FIXED Rate to put them in the desired level of home. They could have made other choices. They could find a modestly priced apartment, exercise fiscal restraint, work towards the down payment, prove themselves capable of living within a budget and saving etc.

They are not "homeowners", they are big time borrowers and it is now time for them to leave the unsustainable situation that they unwisely thrust themselves into and find the proper level of dwelling that fits their income. That is life. Just because they were fleetingly living in a dwelling beyond their means does not mean that they get to stay there indefinitley.

Not one penny of my hard earned money via taxes I have paid should go to help these people. I am saving for my own first house, why should I be financing others? I'm not asking them to help finance me in my quest, my desire, my goal.

Take responsibility for your actions. Recognize that you are not "victims", and get on with life. Quit your begging and whining, it's pathetic. And your politcal panderers / enablers are sending every kind of wrong message to those of us who try hard to do the right thing.

powayseller said...

You all are preaching to the choir.

If you want to make a difference, then do something that takes only 5 minutes of your time. Write a letter to Schumer, another to cosponsor H. Clinton, one to Barney Frank, Christopher Dodd, and your local Congressperson and Senator.

If you want to really get into it, stage a rally, call your local media.

But don't limit your anger to outbursts on housing bubble blogs.

A very good sample letter and email addresses for the politicians is on patrick.net
Stop the Subprime Bailout letter

benstokesspam said...

easy to find senator contact here.

http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state&Sort=ASC

benstokesspam said...

easy to find senator contact info here