May 14, 2007

Pennsylvania lawmakers stupidly trying to use taxpayer money to bailout failed flippers

Man, this really burns me up. A bunch of failed flippers and dimwits buy up homes using toxic loans with the hopes of getting rich, it doesn't work out to plan, and now the state wants to bail them out using taxpayer money.


What's next - pay back the losses on any bad stock trades?

Idiots.

MEMO TO GOVERNMENT - THE MARKET IS CRASHING. STAY OUT OF THE WAY. YOUR ROLE IS TO REGULATE AND INVESTIGATE, NOT TO BAIL OUT FAILED FLIPPERS.

Here's the article - and I love the comments

Pennsylvania lawmakers today called on the subprime mortgage industry to agree to a voluntary moratorium on mortgage foreclosures to give the state official time to set up a refinancing fund.

The immediate goal is to help borrowers who are facing rate adjustments on "hybrid adjustable rate mortgages." Such loans often have an artificially low fixed rate for two years - known as a teaser rate - and then reset with an interest rate three or more points higher.

Because a boom in subprime lending in 2005, thousands of these loans are set to start adjusting this year.

______________

So, where is the money from this fund coming from? I haven't bought a house because I can't afford one. Are my tax dollars going to be used to bail out stupid people?
Posted by: Bitter Renter


THE GOVERNMENT!!! The totalitariast facist must pay for their insolence! Not since 1960s Cuba has a communist puppet regime so blatantly and flagrantly flashed their neo-Nazi prowess and intimidated and coagulated the populace! When are you people going to wake up and realize that this is a DANGEROUS mix of post-war McCarthyism and Trotskyism?!?!?! WAKE UP YOU SHEEP, this is the first of many blows to libertariam factionism.
Posted by: Crazy Old Homeless Guy

I agree,,,,where is this money coming from,,,and why are we bailing out these people,,,if you buy something you cant afford,,they why did you buy it in the first place...what intrest rate..if its lower than mine..then i want in...
Posted by: i owe..i owe .bail me out

25 comments:

DaveO said...

This really pisses me off! Thank you govt. for giving me the incentive to be irresponsible and short-sighted with my money rather than save it. Is it just me, or is the whole trend of the 21st century to spend spend spend rather than save? Whatever happened to "a penny saved is a penny earned"?

Anonymous said...

Hey, Goverment! I'm pissed that my predatory students loans paid for a worthless college degree that I can't get a job with. Where's my free money?

Anonymous said...

A penny saved is...mostly zinc, coated with copper and is composed of metal worth more than a pathetic cent...

Anonymous said...

Casey's site is down again.

I honestly thing its over. His credit cards are maxed. His wife stopped him from using his shell corporation credit card any more cause he was just racking up personal expenses on his corporation. Now that his wife is on his arse, he's done.

Stick a fork in him!!

Anonymous said...

Some wise old crusty figure from the days of yore (maybe speaking about the Depression; wish I remembered who and when) once said about economics:

"The important thing isn't to avoid failing. The important thing is to fail in the same way as everybody else does.

Never did this bitter but sadly true saying seem more appropriate. It doesn't mean diddly that you were "correct" and everyone else "failed" if you end up on the side that has to pay for bailing out the retards.

Anonymous said...

Actually I think the biggest way to get screwed is to not marry and/or have no children. If you're single all income over 35K is taxed at 25% and you are bearing significantly more of the tax burden than you take out in services.

Gary said...

Who exactly supports this kind of crap? Aside from the dipsh*ts that would be rewarded for their financial stupidity. Even the liberal people I know don't think this bailout is right. This country is really starting to make me sick.

Do those of us who didn't jump right up and stick out heads in the noose get a handout to help us buy an overpriced house we can't afford?

Anonymous said...

bwa ha ha ha!! Poor poor renting suckers. You lose out on the greatest boom in history. Then you lose out again as your tax dollars are wasted.

HA HA!!

Anonymous said...

Anonymous said...
Actually I think the biggest way to get screwed is to not marry and/or have no children. If you're single all income over 35K is taxed at 25%


1. Then why do you want a Democrat in office who will raise that 25% back to the pre-Bush level of 28%? You liberals make no sense. You complain about high taxes then vote for Democrats who raise taxes even more.

2. Newsflash!!! Newsflash!! There are tax brackets of much higher than 25%. I wish all my income above $35K were taxed at 25%. That is my wet dream every morning.

3. Learn the difference between the word your and you're.

Anonymous said...

Today public officals only want to get re-elected, there is no accountibility for there actions. Put T.V. CAMERAS in there offices, homes and vehicles so that the public can see our public officals at work.... THAT SHOULD BUILD ACCOUNTIBILITY FAST....this is what they want to do to us and if they complain..well, you get the picture.

Anonymous said...

"How about they put a moratorium on people buying homes they can't afford?"

Marky Mark

Anonymous said...

The comments on this article are overwhelming against a bailout and some are brutal Excellent!!!

cobra2411 said...

Just proves the old adage that debt is wealth... Get in over your head? Government will bail you out...


Makes me sick. Go after the lier sack of crap broker that sold the loan and the greedy lender that approved it and get your money there. Stay the F out of my pocket.

I feel bad for the people that were lied to and sold homes and mortgages that they can't afford, but penalizing me doesn't address the issue. It only supports it.

Debt is wealth; get in over your head and the government will bail you out...

I say a million dollar house for everyone and a Ferrari in every driveway... We'll find some dumb smuck to pay for it later...

cobra2411 said...

You want a solution?

Recast the loan to a 50 year term and make it a 5 yr ARM. Add in a provision to extend the fixed term based on hardship for say upto 5 more years and make the fixed rate low enough, but still fully amorterized so there is principle pay down.

That gives time for the homeowner to have salery increases and for the house to build equity.

If the homeowner can't afford that, then F them! Sell or auction the house and let the cards fall where they may...

And most of all; STAY THE F OUT OF MY POCKET!!!

I'm a little PO'd if you can't tell. And my little rant goes for all states and the federal government too...

Anonymous said...

Dear Congressmen and Senators,

I am writing today to express my concern over various proposals being floated that would bail out homeowners who have taken out risky or inappropriate loans in the past few years. I am strongly opposed to any kind of bailout. Bailing out people for reasons other than 'acts of God' is bad policy because doing so creates a 'moral hazard'. A moral hazard teaches people that poor decisions do not have negative consequences, which of course is completely wrong.

The modern practice of American homeownership has existed for several decades. Part of that practice has been the broadly-held knowledge that a household should not buy a home that costs more than 3.5 times the household's annual income. Unfortunately, due to the Federal Reserve holding interest rates too low for too long following the 2001 recession, and due to an under-regulated mortgage industry 'innovating' by creating a wide array of very risky new 'products', a great number of households have purchased homes that they would not be able to afford under normal and more rational circumstances. The two unique factors temporarily lowered the down-payment and initial cash flow required to purchase a home, and allowed some households to purchase homes far more expensive than the 3.5 multiplier rule would otherwise dictate. These lower requirements enabled housing prices to be bid up artificially, and created the current housing bubble. As the two special circumstances disappear, housing prices will come down.

I encourage you to use your office to investigate fraudulent and deceptive business practices in the mortgage industry, as well as the wider real estate industry. There are plenty of reports of appraisers inflating home values, real estate agents pressuring appraisers to do so, agents and mortgage brokers encouraging borrowers to lie on their loan applications, and so on. Proper investigation and oversight of the real estate and mortgage industries is needed, especially since the current administration has not done so. I encourage you to create ways for homeowners who have been victims of fraud and deception to seek appropriate compensation.

However, bailing out homeowners would set a bad precedent, as well as keeping housing prices artificially high. The majority of homeowners have made good financial decisions, and bailing out the minority who made bad decisions would be unfair and inappropriate. That means many homeowners who have made bad decisions will suffer, along with holders of risky mortgage bonds. Financial loss must be the price of making bad financial decisions, otherwise there would be no reason to make good financial decisions. Inaction during widespread financial losses is certainly not a vote-winner, but you were elected to provide quality leadership for this country. The appropriate leadership now would be to make sure the unique factors that enabled the housing bubble do not re-occur, and to investigate fraudulent and deceptive practices in the real estate industry. I am confident you will make the correct choice.

Thank you for your time.

Anonymous said...

they want to save their tax bases since the corporations do everything possible not to pay a penny. unfortunately, the people don't have time and money to fight back.

Anonymous said...

As I've commented before, I think politicians are just covering their rears with these "bailout" loans. When all is said and done, I wonder how many sheeple will admit they lied about their incomes on their no-doc loan applications. Consequently, I believe there will be a lot fewer "eligible" borrowers stepping up to the plate than are expected....

Anonymous said...

"Actually I think the biggest way to get screwed is to not marry and/or have no children."

Yeah, I really am getting sick of paying for all of this countries' dipshit, booger eating kids. Sorry to break the news to you folks, but most of your kids are morons.

Anonymous said...

Dear Congressmen and Senators,

Excellent!

Anonymous said...

"Sorry to break the news to you folks, but most of your kids are morons.
"

And A LOT of those morons are PILLED up on paxil, rittlin, and various other anti depressants because their "parents" dont KNOW HOW to be a parent.

Stupidity begets more stupidity...

I WELCOME the NEXT GREAT DEPRESSION !

Anonymous said...

Sweet,I'm buyin' a million dollar beach front condo tomorrow!

Then, I'm gonna quit my job and get a job selling snow cones and wait for the bailout!
Thank you Alan Greenpockets!

Anybody got Hayes Barnard's number?

Anonymous said...

So if I go buy a Mercedes and can't make the payments, will the government bail me out with a zero interest loan? How about I run up my credit cards and have the government pay that down for me? Free money for everyone courtesy of the taxpayers. F*ck you Dummycrats. I can't believe I voted for these morons.

Anonymous said...

So what's next? We bail out the gambling losers who end up spending their paychecks on hookers and booze as well? Now, wait a minute, the government will toss me a bail out package for being an utter moron? Yep, you gotta love the new America. I'm just sorry I have to see the country my father fought for end up in the toilet with these types of legislation. God help us all.

Anonymous said...

FDR Saved Homeowners from Foreclosure, Will We Listen?
May 15 (EIRNS)--A coalition of 115 California consumer groups, including legal aid groups, housing counseling services and economic rights advocates, has sent a letter to six major mortgage lenders, urging them to suspend foreclosures on home loans for the next six months, and to find ways to keep borrowers from losing their homes. According to the letter, sent to the CEOs of Countrywide Financial Corp., Wells Fargo & Co., Citigroup Inc., Washington Mutual Inc., Bank of America Corp. and Merrill Lynch, if the mortgage lenders don't act, hundreds of thousands of Californians who took on risky loans could lose their homes.

While this is the right intent, that is, to keep people in their homes, this approach is somewhat like asking the fox in the henhouse to be nice to the chickens.

As Lyndon LaRouche has stressed, the federal government needs to step in quickly and freeze all existing mortgages, so to keep people in their homes. Only the federal government is in a position to do this, and act as an effective barrier between the financial institutions and the general welfare of the public.

Anonymous said...

Will they bail out those who invested in C.D or government securities for a five year interest gain of 12 percent, and lent to flippers who get/got/intend a 200 percent yeild, not inflation reckoned, and thus lost 80% of their purchace power......