August 31, 2007

George W. Bush, The Worst President Ever, and misguided promoter of "the ownership society" (aka "buy at the peak!") makes matters ever worse today

That's it HP'ers, today's the day. The Worst President Ever steps straight into the subprime disaster wad of dung that he helped create today.

Are you a housing gambler in need of a government bailout? You've come to the right place.

Casey Serin - today's your lucky day

Failed flippers - here comes George, with loads of taxpayer money to the rescue

Housing gamblers - why stop now! Go double down, because if things don't work out, the taxpayers who didn't gamble will bail you out.

Bush Banker Buddies - don't worry, you may own crap loans, but Georgie will do his best to make sure the sheeple don't just turn in the keys and walk away

HP'ers, IF (big IF) one dollar of your taxpayer money goes toward bailing out failed flippers and housing gamblers, the level of rage and distrust for this government should go off the charts.

George W. Bush - The Worst President Ever - and our Nero. We are indeed run by monkeys.

Bush Moves to Aid Homeowners

WASHINGTON -- President Bush, looking for ways to respond to the subprime-mortgage crisis, will outline a series of policy changes and recommendations today to help borrowers avoid default, senior administration officials said.

Among the moves will be an administrative change to allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to guarantee loans for delinquent borrowers. The change is intended to help borrowers who are at least 90 days behind in payments but still living in their homes avoid foreclosure; the guarantees help homeowners by allowing them to refinance at more favorable rates.

Mr. Bush also will ask Congress to suspend, for a limited period, an Internal Revenue Service provision that penalizes borrowers who refinance the terms of their mortgage to reduce the size of the loan or who lose their homes to foreclosure. And he will announce an initiative, to be led jointly by the Treasury and Housing and Urban Development departments, to identify people who are in danger of defaulting over the next two years and work with lenders, insurers and others to develop more favorable loan products for those borrowers.

111 comments:

Meg said...

Crikey...this is like watching a car crash in slow motion. I feel a sick sense of dread mingled with a strage fascination about Bush's speech today, and I'm not even American.

It seems so unfair for the people like me. I rent and try to save as much as I can, but the prospects of my ever owning my own home are extremely slim. Unlike a lot of the people who post here, I have very little in the way of wealth, but I'm debt-free and I make do okay. If I were faced with the prospect of my tax dollars (or pounds - I'm in the UK) being used to help out people who didn't have the common sense to live within thier means, I'd be looking for the nearest riot to join.

Anonymous said...

Well, I guess I'm going to have to HELOC my house to the hilt (I've never borrowed on the equity in my house which has tripled in value since I bought it) and stash the money away, tell the "Homeowner Protection Committee" that I spent it on hookers and crack, and get myself a bailout.

Anonymous said...

W(dubya)TF? BULLSHIT!!!!!

That is what the fools agreed. Their stupidity will result in a rapid burst of the bubble. Now hard working people who saved for a down payment, lived within their means and have solid credit can now afford to own a home. So I do not see the problem. Any aid to stupid toxic loan holders, (better term as many flippers do not "own a home" just are overlevered holders of unstable liens against housing assets in the hopes of making a short term profit), will actual prevent market forces from righting the wrong caused by loose lending and greed, keep housing un-affordable by preventing a reversion to the mean and therefore lock out hardworking people with solid credit!!

Anonymous said...

Oh dearie me. George Bush is going to make an anouncement today about the current sub-prime mortgage woes? And it looks like the US govt is going to help bail out those mortgagees who are defaulting on thier loans? Possibly with taxpayer dollars? Oh mama, if that happens, the sh*t is really going to hit the fan over there.

It's like watching a car crash - I feel sick but I can't seem to look away.

I'm not American, but if I was, I'd be looking for the nearest riot in the event that the gov't declared they were going to use tax money to bail out people who were far too greedy to live within thier means. I rent and try to save. I have no wealth or assets, but I don't have any debt either. I'm pretty much resigned to never owning my own home, even if the market was to go pop.

It's the people who don't speculate and try to get ahead by honest means that get hurt every bloody time.

Anonymous said...

Monkeys are not mass murderers.

Anonymous said...

Great news for we borrowers.
HP your time is up. Shut shop.

Watch my words|

Do you remember what I said 2 days back. I knew it was coming.

GreedKills said...

Honestly Keith...I think that the "bailout" will be on a very small level compared with how much would really be needed to fix the mess in it's entirety. Just like you mention below with the ARM reset chart. I also think that it will truly be aimed at the poorest of people to shore them up to vote republican. We just need to figure out what he means by "low and middle income"

I doubt he's gonna let any flipper holding any extra condo(s) sail through on his handouts. I'll bet that vacation homeowners will be screwed also. Everyother FB will just be squeezed.

Anonymous said...

as an investro I underestated the government's ability and power. Lowering the discount windo and now this could buy more time. I should have stayed in the marktet a bit longer. We can laugh at this but as investors this has huge ramifications to the upside.

I shoul have stayed in the market over the last two years or so. I could have maede alot more.

HP"rs,bear folks, gold bugs, doom and gloomers, let's atleast be honest. Some of us have missed out on the stock party. Hey I can adimit it. Im disappointed in my misjudgement in these bailouts. the last few weeks could have been great buying chance

Anonymous said...

Holy F*cking Sh*t! I have to get out of this country. Trying to do the right thing just isn't working out. Where is a good place to go?

Anonymous said...

retarded bastard asshole

Gary said...

Words cannot describe how much this pisses me off. I've been wondering, with a bit of hope I guess, which direction we'll be heading in with the country. Now its clear. Spend every damn dollar you get, people. If you're a saver, its time to change. Dollars are well on their way to becoming known for what they are...nothing. You might as well swap 'em for useful things while you can.

bitter said...

Those stupid Democrats are stealing more of your taxes to bail out Wall Street.

Anonymous said...

The solution is socialism and nationalized housing. the government will make sure all Americans own a government-built or approved house. Home sizes will be decided by family size. Best efforts will be made to ensure that all the races, religions, and different income levels will be living together in the same neighborhoods.

Owner Earnings said...

Knowing the government the plan will be so bass akwards that it wont bail too many speculators (idiots) out.

Anonymous said...

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I've never been more ashamed of my gov't than today -- and I haven't even heard W's speech yet. Even if this bailout won't change the end result (and it won't), the fact that my gov't would even attempt to use my tax dollars to let FB's and Greater Fools off the hook makes me sick to my stomach.

You're right, Keith, this seals it. Worst. President. Ever. And it ain't even close now.

Anonymous said...

I hate this country anymore.

Anonymous said...

I couldn't agree more with your comment. Fools like me have lived within our means, saved our money, hoping one day to be able to afford a house. It was not to be. Everytime I came close, the price rose beyond my grasp. Now, when relief to folks such as I is within our grasp (i.e., the prospect of house prices returning to afforadble levels), in steps this President to keep those prices from falling.

If it was O.K. for prices to soar, why is it not O.K. for prices to fall? One of the virtues of our country's economic system--and one which staved off revolution during the last Great Depression, was that the event was a great leveler for all. Rich, poor and middle class suffered alike. This latest bailout, like all government bailout, preserves the status quo in favor of the "haves" and thereby works disproportionate harm upon the "have-nots," which, in this case, are would-be homeowners such as me.

SPECTRE of Deflation said...

You mean he's taking time away from promoting illegal aliens and amnesty long enough to do a bailout? What a guy.

I can't wait to see this debacle unfold. They will make it worse of course, but entertaining it should be.

Mr. President, I have been tricked with those slick offers on credit cards. Please help me oh wise one.

a.creampuff said...

Such a bailout was absolutely predicted on HousingPanic many times. Those posts generally suggested it will merely protract the inevitable. The Fat Lady sang on the housing run-up, but we're going into extra innings on the crash part of this double-header. I still don't think anyone can call the game (how well the economy can absorb the housing crisis and when prices will come back to Earth) precisely.

p.s. - keeping with the baseball metaphor, that pic of Bush is the commercial: "Vi-TAL-is!"

Claude said...

This supposed bail out will amount to much ado about nothing. It will not keep these over-extended idiots in their home nor will it bring out a slew of bag holders so that these specuvestors can dump their properties. At the margins it will bail out the holders of some of the mortgage backed securities. Even so it will not bring back the crazy easy mortgage heyday and that is what caused the bubble. If anything it just slows the collapse a little bit. As our currency goes into free-fall real interest rates will shoot through the roof and there will be nothing the fed can do about it.

SPECTRE of Deflation said...

I'm watching Gold and Silver sky this AM while the dollar tanks. The new uses for the dollar will be:

1. Wipe your ass with them
2. use a bundle to start a fire

Welcome to Weimar America! We have a bunch of f***ing morons running this country.

SPECTRE of Deflation said...

All you responsible individuals who use credit wisely and spend within your means are like so old fashioned. Hell, let's all be irresponsible and max everything out cause I want my piece of the pit...I mean pie.

Who hasn't been completely mesmerised by those slick credit card offers. I swear I didn't know they had teaser rates, and now my balance grows every month. I feel violated Mr. President so please help me to. Let me be one of your Dad's wonderful 1000 points of light when you take away all my debt. F***ing idiot!!!!!!

Anonymous said...

It doesn’t pay to be a responsible hard working citizen in this country anymore. What a slap in the face this is to all those who had the discipline to not get involved in those risky loans. We have been made the fools now. My idiot friends who bought houses that they KNEW they couldn’t afford, but didn’t care, will now be rewarded for their foolishness. I’d like to sign up for a bailout of a few stocks that I lost money on – anyone know where that list is? I’m so ashamed of my self for ever supporting this President.

Anonymous said...

Ok, this government has gone far enough. It’s time that all hard working Americans who played by the rules to launch an all out protest of this bailout. Here are the email addresses to send your NO BAILOUT protests to:

comments@whitehouse.gov.

vice_president@whitehouse.gov

All the Senate email addresses:

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

Flood their servers until they get the message.

Pass this around to everyone you know.

Anonymous said...

Another WTF moment. I'm disappointed but not surprised really, the banks have a lot of pull on the hill. Anyway thanks Keith and all the board contributors for seriously fattening my wallet from CFC and Home Builder Put options. I'm not sure I would have gone in so aggressively without all the great analysis on this board.

I had been and still am contemplating adding PUTs with WFC and WB because I believe they are still not anywhere near close to valuing their loan portfolios at market value which will have to be done at some point. This latest news throws a little monkey wrench in the analysis though.

Although if I lose all my money option trading, it’s not my fault, I’m a victim of easily facilitated online trading and deserve a bailout.

Anonymous said...

Goddam it, can I just sto paying taxes? Is that possible. So what is the point of anyone have any kind of common sense or discipline? I am sickened and disgusted.

Anonymous said...

Anonymous said...
"as an investro I underestated the government's ability and power..."

No use regretting.. Follow asset allocation..and rebelancing once a year.. the only time tested receipe for your investment success.

Dont get carried away by CNBC or HP views.

michael said...

"I doubt he's gonna let any flipper holding any extra condo(s) sail through on his handouts."

the fraud and abuse in qualifiying for the bailout will make the earned income tax credit look like the virgin mary.

hemisboats said...

I AM APOLLED AT THE FACT THAT THE PRESIDENT AND CONGRESS ARE TALKING ABOUT BAILING OUT HOMEBUYERS WHO HAVE ARM's AND GIVING TAX BREAKS TO MORTGAGE COMPANIES TO REFINANCE SAID PEOPLE. OUR HOUSEHOLD IS ON A FIXED RATE MORTGAGE AND WE MAKE OUR PAYMENTS FAITHFULLY. TIMES ARE TIGHT FOR ALL, SO WE HAVE CUT BACK ON EXTRAS TO ENSURE WE DO NOT FALL BEHIND ON OUR "OBLIGATIONS". NOW WE FIND OUT THE GOVERNMENT WILL USE OUR TAX MONEY TO BAIL THE IRRESPONSIBLE OUT AND ALLOW MORE PROFITS FOR THE MORTGAGE INDUSTRIES. IT IS UNCONSTITUTIONAL FOR THE GOVERNMENT TO SINGLE OUT ONE CLASS OF PEOPLE OVER ANOTHER.

THIS SMACKS OF THE TEA TAX FROM THE BRITISH, WHICH WE ALL KNOW WHAT THAT STARTED.

DOPES said...

HAHAHAHAHAHAHAHAHAHAHAHA!
LOLOLOLOLOLOLOLOLOLOLOLOL!
HAHAHAHAHAHAHAHAHAHAHAHA!
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THANK'S GUYS!!!!!!
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YOU ARE THE BEST!!!!!
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YOU KNOW WHAT, I MAY SEE WHAT KIND OF DEAL THEY HAVE AND JUST MISS A FEW PAYMENTS TO GET IT!
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HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!
LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL!
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YOU KNOW WHAT. I MAY JUST RAISE THE RENT AGAIN THE MAX THIS YEAR, JUST FOR THE HELL OF IT!
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HOW IS THAT SAVING AND RENTING GOING?
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THANKS AGAIN GUYS! YOU'RE THE BEST!
.
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SUCKERS!!!!!!!!!!!

The Thinker said...

Don't worry, all this lame duck can do is quack. He can't get a law passed, no way!

David said...

No to a Bailout!

Anonymous said...

HEY KEITH I LOVE HOW YOU OMIT THE FACT HILLARY IS PROMISING THE SAME THING YOU HYPOCRITICAL ASS.

Anonymous said...

#1 The Presdient of the US does not make or write law.

#2 The CONGRESS of the US does that

#3 The President can only sign or veto the entire proposed law

#4 Your friends - the DEMOCRATS control congress

Marky Mark

Anonymous said...

I hope there are enough Congressmen with a backbone to stop this nonsense. Wait, it is Congress we are talking about. Forget about it!!

Anonymous said...

BAILOUT WAS HILLARY'S IDEA FIRST!

http://tinyurl.com/2oxeas

donut said...

This act of "W"'s is no surprize. After all this MORON is the most "W"illful president in the history of the US in addition to being the most intellectually deficient. The real trajedy is that 50% of the people in this country put him in the White House. I'm all for impeaching this evangelist president who has robbed me of my civil rights and is now trying to pick my pocket yet again.

Anonymous said...

This isn't as bad as it sounds.

1. It's merely a PR gesture. The president had to say something so that the "da ripulikins only care about da rich fokes" people get declawed.

2. It's something congress has to approve. That might take forever if ever.

3. All it's going to do is prolong the inevitable. House prices will keep going down and these stupid homeowners will end up dumping more money into a bottomless pit and eventually get foreclosed on anyway.

4. If you own a house, now is a nice time to HELOC right up to the hilt, bury the money and tell the "Homeowner Rescue Association" you lost it all in Vegas, on hookers or crack (due to the fact that you are "financially challenged") and that you want the super duper low-rate-stupid-person-bail out loan.

Actually, I had many long positions in the stock market that got toasted in the crash. Stuff like BHP and RIO that should never go down but did. Hopefully this hopeless gesture will let them go up enough to let me get out quickly without too much damage, just in time to use that profit to buy more short positions in the lenders and home builders that are popping up on this silly news.

4 hour hard on said...

Well I think bush has totally screwed up once again. This is a total scam and the most absurd crap I have ever heard.This country is going downhill bigtime.
Now we help people who lose gambleing? Time to go heloc my house so I can get a bailout too.

Anonymous said...

Well HPers, looks like Paulson's PPT, Bernanke's helicopter, key Democrat senators, and W are all on the same page now. Bailout time boys and girls, let the party begin!

What's that? The Dow just gapped up 150 points at opening. Oooh, I smell lower interest rates ahead.

Dopes!

Anonymous said...

LBJ is the worst. Look at your paycheck, fools.

The more Bush helps the borrowers the more the downward spiral goes. Panic always sets in when the govt has to get involved.

Anonymous said...

The markets will still crash because we don't save and nobody in their right mind would invest in a market with a currency that is falling off a cliff.

Greenspam couldn't fix the dotcom bubble and Bush can't eat pretzels alone for god sakes. I feel it will take a little longer but I expected the fools to do something they couldn't just sit there. Anyway ask people in New Orleans how well they can fix anything.

The housing crash will still occur it will just take longer to play out aka Japan. They lowered interest rates to 0% and handed out yen in every noodle shop. It didn't change a thing neither will this.

Last but not least housing was starting to fall while this toxic waste BS was still available. They may help people who are struggling currently but they aren't going to allow this crap to continue. Nobody will invest in this crap anymore. Housing and the mortgages that back it are damaged goods The same as Cisco,JDS Uniphase,Corning etc.

Sequoia512

Anonymous said...

Some interesting comments:


It doesn’t sound as bad as it could be:

- Market-rate FHA mortgage, only up to $417K. Thus McMansion owners ineligible.
- No below-market rates subsidized by taxpayers that I can see
- FHA has $22 billion to cover losses, theoretically all loses come from insurance paid by FHA mortgagees.
- buyer must have gone behind only after resets
- buyers will not get 1099’s, which is unfair, but at least losses will have to eaten by banks if they forgive any debt
- I don’t see this yet, but I bet 2nd homes will be ineligible.

So this would help the proverbial guy that can afford his house at 7% or whatever, but cannot afford it at the 12% it has reset to. I don’t see how it helps someone who needs a 2% teaser rate in perpetuity, or needs HELOCS every year to make his payments.


Marky Mark

PS:

Bailout details.

http://www.nytimes.com/2007/08/31/business/31home.html?hp

Nothing too bad here, yet. No 1099s for homeowners who refinance or are foreclosed without deficiency judgements. Some more bona fide owner-occupants able to refinance with FHA.

“One official said the administration’s proposals would not include a bailout of institutions that bought mortgages that have plummeted in value. ‘We are not using the b-word,’ he said, referring to the talk of bailing out lenders.”

OK, so no “privitize the profits, socialize the losses” yet. If both Republicans and Democrats are willing to play that card against each other in the election, maybe it won’t happen.

BitterRenter said...

There's no way in hell a republican is going to help the masses avoid financial ruin. Republicans live to see others do badly. The only reason he would even try is to keep the rich from losing money in the markets.

Burning Rectum said...

This isn't for the little people. It is to ensure that the lenders do not get too many defaults by allowing their...uh..."customers" to keep paying up.

We have to stop people from dumping their homes on the bank.

We have to stop asset values from plummeting to avoid bloody books for those who hold the paper on these things.


I guess if you are in Dirthole, Flyover it might benefit you. For those in SF, LA, OC, and SD, $417k is more like a downpayment than a mortgage amount.

Anonymous said...

One thing I have to say: After reading at least once a week "this is the day" on the HP site, and trying to spread the message to my friends, I fell that it is time for you to look at where this is going - the show will probably go on and there will be no revolution. For the first time since, I think that selling my property last spring at no profit was a bad move. I want to stay a believer, but I find it hard today. Waiting to hear what will George say today, and hoping my new, american passport arrives soon so that I can start planning...

Anonymous said...

Anonymous:

It's good to hate this country. It's a vile culture of greed and ignorance. Work to destroy it. Start today.

Anonymous said...

This makes me want to say F this corrupt nation. I should not feel guilty about doing everything within my power to safely avoid paying any taxes to this collapsing country.

Anonymous said...

A Fantastic message to those who are responsible Is this what a Conservative President Does????
Jay In Mass

Anonymous said...

Gee, I guess I'm the only one who thinks this is a reasonable step (and yes, I still think GWB is the worst president since Carter). You guys really expect the gov to stand back and do nothing as the country tanks into a depression? If a large number of people end up on the street, who do you think is gonna have to provide them food stamps, emergency healthcare, public housing, or whatever. And who's gonna end up paying for the retirement of all the people who's pensions are tanking because of bad investments? One way or another, in a mixed capitalist/socialist system like ours, the government will be stuck with these burdens.

Loan guarantees for people who are living in their homes doesn't let them off the hook for the debt, but does let them refi at an interest rate that is not usurous. This doesn't bail out investors who don't live in their upside-down properties. I humbly suggest that the gov change the limits on cap loss deductions, though; it's not exactly fair that the gov took it's share of the profits during good times but caps your losses to $3k/year. That's as far as I'd go for the investor/speculators. I will also reiterate that I don't see the harm in bumping up the conforming limit to $600k nation-wide, as long as credit quality metrics remain the same. Re. the IRS rule changes, this is as close as this comes to giving away money to foolish borrowers. But the money being given away is coming from foolish lenders. In effect the gov is taking a seat at the bargaining table between FBs and FLs, setting things up for them to split the pain where possible. This is actually better for both parties than going to forclosure, which is lose-lose.

Anonymous said...

The Federal Housing Recovery & Repair Agency?

What I don't know:

1) What this agency will do

2) How much damage it will do

3) Exactly how many centibillions will go down the drain

4) What horrible scandals we will find

What I do know:

5) The money will be targeted to help Republican swing Congressional districts

6) The disgraced head will get a Presidential Medal of Freedom while ducking subpoenas, indictments and maybe an INTERPOL warrant.

He's gonna do a heckuva job!

Anonymous said...

I'm hoping this is a symbolic maneuver to cover a rate hike to save the dollar.

No they can't be that smart.

Anonymous said...

All talk and no action, just put it on the list with the Border Fence, SS accounts, Drug plan for seniors. It's just "Happy Talk" to keep the masses happy nothing more.

Pop said...

"By allowing the agency to back loans for delinquent borrowers, the FHA estimates it can help an additional 80,000 homeowners qualify for refinancing in 2008, bringing its total of refinancing guarantees to about 240,000, senior administration officials said."

Wow, that's really going to save all of the homedebtors!

Isn't it clear what's going on here? The Dems are 3/4 of the way to socialism, many people in America want the government to give them handouts, and the Republicans have to play along to buy votes.

Deverguy said...

I personaly think it is lip service and nothing more. we are going into an election year and they cant afford to have the county drop into the next big ression right before that because the blame will land firmly on them (as it should). I know it wont do much good but I will be writing to express my displeasure with this idea.;

Ron said...

Cool, so instead of having everything reset with normal market and keeping the dollar intact.....we will instead end up at the same place with a reset and in the process of failed bailouts we will now devalue the dollar to lower than the peso.

Another great move by Blinky the Wonder cat our fearful Coward in Chief. What a disaster, well say good bye to your savings values, and hello inflation the likes we never seen.....freaking moron.

grilled ham and swiss said...

How can this work? What about people who have just lost their jobs?

What about more good paying jobs Mr. W? You have screwed up America so bad (Your GOP 9/11 fake attacks, terra, terra, terra crap, fear mongering, Mexico, Afghanistan, Iraq, Iran, Enron, stock market crash, housing crash, bank collapses, out-of-control spending, lies under oath, cover-ups, etc, etc... Heck nothing can stop your continued destruction of America now. What a bunch of sad, criminal clowns we have running our country into the ground.

We are so doomed!

SPECTRE of Deflation said...

Somehow you asswipes who think the bailout is wonderful have missed the fact that the dollar is headed to zero. The elites can move money around this world of ours without any problem while the average joe will be bent over and reamed with no KY.

DOPES, I know you will be crushed because you really believe the govt. can save you. LOL! Let's see how hard you laugh when you use your worthless dollars to wipe your chin at the soup kitchen.

Also, the bailout won't work, and in fact will make matters worse which will give realists more gains in shorting all the flying pigs of Wall Street. Party on Garth!

Got Gold and Silver?

Illegals and Losers Everywhere said...

"suspend, for a limited period, an Internal Revenue Service provision that penalizes borrowers who refinance the terms of their mortgage to reduce the size of the loan or who lose their homes to foreclosure"

Where do I sign up for my windfall tax rebate? I mean handout!

I bet the average will be 80K

Anonymous said...

Those of you who are lusting for the dems to take over the government should consider the effect of high tax rates on savers. Right now if you are getting 5% on your savings you are losing money because after taxes you are making less than inflation. Any wonder we have 0 savings rate?

Montpellier said...

That's OK - it's only socialism or communism when you do it with profits - and you're a Democrat. This is the GOP, in their inerrancy and faith-based infallibility, showing us how the invisible guiding hand of the true free market occasionally needs a little guidance and reassurance from taxpayer coffers.

This is the GOP trying any desperate measures using taxpayer dollars to prevent the country from seeing the disastrous results of their policies. Plus, it never hurts to bail out your donors!

Bush-II, meet S&L-II

It's all good: IOKIYAR

Anonymous said...

80,000 homeowners may get help...out of millions of FBers.

DOPES, I doubt you'll qualify as one of those 80,000 lucky ones. You willing to chance wrecking your credit in order to save a few grand? Go ahead, do you feel lucky kid?

Yeah, and another thing, please do raise your rent. I'll just rent from your next door neighbor for half the price.

What a dumbass.

Anonymous said...

"Unlike a lot of the people who post here, I have very little in the way of wealth, but I'm debt-free and I make do okay."

This is the internets, no one tells the truth!

we have a major meltdown said...

Hell, I'm still waiting for my refund on all that duct tape and plastic sheeting that bush and cheney told americans to purchase because Iraq was ready to launch long-range chemical missiles at the USA! WTF? And now, just yesterday, I heard Scooter Libby was seen at a tropical resort yesterday lounging around the pool with a drink in his hand! Man, oh man... We have some MAJOR CROOKS in Washington DC, and I mean MAJOR!

Anonymous said...

THIS IS A PR MOVE, COMING ON THE LAST DAY OF THE REPORTING PERIOD TO HELP THE FINANCIALS. HELP FOR 80,000 HOMEOWNERS IS SYMBOLIC AND DOESN'T COME CLOSE TO MAKING A SIGNIFICANT IMPACT. CNBC HAS YET TO SEE THROUGH IT.

Anonymous said...

Relax folks.

This will get funded like the Border Fence got funded.

Like the NOLA Katrina hurricane victims got funded.

This is simple appeasement, a few small crumbs will be handed out. It also signals that the Fed Funds rate will not be cut as a shot gun approach to fix the people who will be foreclosed.

Invest accordingly.

crime does pay act of 2007 said...

Wow. If this comes to pass let it forever be known that crime (mortage fraud, lying on no doc loans, etc...) does pay.

Anonymous said...

This is called BUYING AN ELECTION. 2008 is right around the corner.

Anonymous said...

To the Honorable President Bush,

I am having difficulty paying my quarterly tax bills to your government. I guess my recent purchases of the plasma tv, hummer and swimming pool have impacted my cash flow in a negative way. I would appreciate a reduction in my tax % so that I can continue to maintain the lifestyle that your administration has encouraged.

Thanks you from a grateful Amerikan.

Anonymous said...

The politicians, I mean perverts have no loyalty to this country or the good citizens. They saturate our population with illiterate savages. They serve the corporate trade policies at the expense and detriment of the citizenry. At the expense of our currency, they bail out greedy bankers that hide their business practices in the Caymans.

I have served this country to my own detriment and have always tried to be a good citizen but no Fn’ more. The powers to be have no loyalty to anything but greed.

I have stated here before and outlined how that I will no longer feed the monsters on Wall Street and the traitors in power. They are counting on tomorrows 50% or more tax rates on your 401k’s to support the socialism of today.

Anonymous said...

Well from what I heard from dipshti I don't think it will help alot. I hope they stick with allowing only FAMILIES who got suckered into this. I do feel sorry for people who really just wanted to own a home. there are a few out there like that but they are the minority.

However if all you could afford were minimum teaser rates and pick the lowest payment type mortgages you are still screwed. Now we get to continue watching who was wearing cloths while swimming and who wasn't. Hope my next door neighbors are broke would love to see his trophy wife in the buff.

Housing will still fall because demographics are more powerful than governments Japan and soon Europe will be prime examples of this. Less people buy less stuff, old people buy less than young people, and dead people buy nothing.

dopes 2 said...

All the renters that have been saving and waiting: all your hard work will go towards bailing out other financially irresponsible people.

Cap'n America said...

Living in America now is a hellish version of The Matrix.

The whole goddam society is set up to suck everything out of you, whether you like it or not.

If you don't sign over your entire life earnings and register as a mortgage debtor, the Fed, the Executive, and the Congress will make damn sure you regret that decision.

This country is fucked: the choices for "change" look like either fascist redistributionists (authoritarian third world) or socialist redistributionists (Marxist third world). What a choice.

Just give me the goddam bluepill already and sign me up for an ARM I can't afford.

Karlito said...

Our only hope for America is

RON PAUL 2008!

RON PAUL 2008!

RON PAUL 2008!

Screw the big government D's and R's!!!

We need a new revolution in this country!

BrianM said...

Real estate message board topic Should the federal government bail out subprime mortgage borrowers? at MSNBC is filling up with comments. 99% of them are against this.

MSNBC Discussion here

Anonymous said...

Hey. If you're mega-rich, the Chimp is one of the best presidents ever.

Anonymous said...

yeah just put your money in the bank or invest with government and lose 80 percent of your purchace power in relation to housing while you are saving to afford housings... by leting them loan your money to house buyers.......

Anonymous said...

I didnt know that I was going to have to pay my student loans back.

Help me Dubbya!!

Love that Bushie said...

Welcome to Weimar America! We have a bunch of f***ing morons running this country.
August 31, 2007 1:30 PM
===============================
Bush is not a Moron. Bush is a Republican.

Anonymous said...

"The housing crash will still occur it will just take longer to play out aka Japan. They lowered interest rates to 0% and handed out yen in every noodle shop. It didn't change a thing neither will this."

------------------------

Very good point. With today's annoucement I agree that it looks like we're headed towards a Japan type of meltdown. This mortgage mess is like a cancer that won't go away - the demise is assured but the process is so slow and painful. Today the meltdown has only been slightly prolonged again (radiation treatment), but the problem won't go away that easily.

Many thanks to Ben Bernanke, Hank Paulson (who no doubt orchestrated this) and President Bush for making things worse today for all of us. What a great soulution these dunderheads have come up with - keep encouraging up to their neck in debt homeowners to continue in their foolish borrowing ways. I've never once ever heard of a debtor spending their way out of debt. For some reason this Government seems to think that works.

Today's Government lesson: Go ahead and spend like there's no tomorrow. If you get in trouble, don't worry. We'll just take money from all those foolish responsible citizens to bail your ass out so you can continue in your ways. If responsible citizens won't recklessly spend their money like you, we'll just have to do it for them.

Daphne64 said...

From what I've read, Bush's proposal doesn't sound too bad. It sounds like it's aimed only at fairly responsible that got snookered into ARM's when they could have swung fixed mortgages.

My bailout would be similar, except I would take the money out of the pockets of folks like Angelo Mozilo in exchange for reduced prison terms. (Maybe reduce prison time by one day for each FB they save).

Anonymous said...

All talk and no action, just put it on the list with the Border Fence, SS accounts, Drug plan for seniors. It's just "Happy Talk" to keep the masses happy nothing more.

And that is all it is. No reason for the HPers to become overly beligerent. This housing bubble will burst no matter what. Any type of refinancing plan or bailout will simply marginally delay the inevitable. If anything, it will make things worse for those already in those homes. They can refi to a lower rate and perhaps ride things out. But they will be stuck in a depreciating property because the lending standards will be tightened. And thus, those new home buyers wanting to purchase won't have access to large sums of credit. Ergo, no one can afford these houses. (Especially in the pricy areas) So it is all moot.

Not to mention the inventory levels will still be rising since this supposed "bailout" will only be extended to those in the subprime bracket who had poor credit. Are you telling me the government will be able to pass a law that lets Mr. Six Figure Salary refi his home because he was "taken advantage of"? Not a chance.

So calm down you guys. This is nothing but simple lip service by the government. How many similar statements were made after the dot com meltdown? Or the S & L disaster? In the end, the system righted itself. It always does.

film at 11 said...

"Today's Government lesson: Go ahead and spend like there's no tomorrow. If you get in trouble, don't worry. We'll just take money from all those foolish responsible citizens to bail your ass out so you can continue in your ways."

It took you this long to figure out their game plan? One minor change though, they won't "take [the] money" because Joe Sixpack doesn't have any. No, the Fed will print some of the money and borrow the rest from Asian countries. Inflation will be allowed to reach "uncomfortable" levels based on the bogus official numbers, while in the real economy it roars along at 15%-20%. Net result is this problem goes away in 3-5 years. Just don't plan that European vacation anytime soon.

Oh, and you HPers renting and waiting for the big RE crash, forget it. House prices will be on the way up again by next Spring thanks to inflation.

Anonymous said...

IMPEACH What is the democrooks waiting for

Anonymous said...

"To the Honorable President Bush,

I am having difficulty paying my quarterly tax bills to your government. I guess my recent purchases of the plasma tv, hummer and swimming pool have impacted my cash flow in a negative way. I would appreciate a reduction in my tax % so that I can continue to maintain the lifestyle that your administration has encouraged.

Thanks you from a grateful Amerikan."

Good one!

bitter renter said...

What do you selfish Ron Paul supporters think now that he is calling for a bailout? Not such a libertarian anymore, is he?

Anonymous said...

Funny how Dubliah announcement came soon after S&P stated that the financial sector will have one of the worst quarters in history coming up.

Yep folks, the secret society is out in full force to protect their pals on Wall Street.

Anonymous said...

Surprise, surprise, the Anti-Christ is creating chaos again.

TM said...

Don't worry, he's only the president, and will have to work with Congress to get any legislation passed...

...a Congress full of guys like Chuck Schumer and Hilary Clinton...

F&ck.

Anonymous said...

Hey sheeple, you spin that hamster wheel harder to pay for the flips of all those millions of Mexican illegals who were committing mortgage fraud and flipping properties with Liar's Loans. You put more hours at work because Bush wants to transfer your money to his banker pals on Wall Street.

So you all keep working harder and put more hours because the bill is enormous and you will have to subsidize all those illegal Mexican and Cuban flippers. Work harder to pay this bill and watch a lot of Fox News, like a good little sheeple you are.

Gary said...

I know that this isn't as bad as it sounds. In fact, it probably won't help the "housing panic" much at all. But, we all know how our gov works. Incrementalism. This is just setting the stage. Our fearless leader is now spouting off about bailing out homedebtors. It can only mean one thing. It's going to happen. F!ck, I'm pissed.

Anonymous said...

awww what's the matter QWEEFER? Looks like you and your idiot follwers were wrong after all. Bush, Bernake, Hitlery, Osamabama, Dodd...all are in on it. Bottom line is this: housing is not crashing and it never will.

Anonymous said...

Aug 31, 2007

The day that

a) HP officially died

b) a new housing boom begins

c) capitalism died in the USA

Anonymous said...

If I were faced with the prospect of my tax dollars (or pounds - I'm in the UK) being used to help out people who didn't have the common sense to live within thier means, I'd be looking for the nearest riot to join.

Ha!

You already do that, every day. I say that as a Yankee who lived in London for years and paid Red Ken's killer taxes and fees.

The council house kiddies, who didn't work (and had parents and partners who didn't work) were driving around in shiny new Puntos, wearing Adidas shell suits at £80 a pop, and had the latest and greatest mobiles. Their flats were just as good as mine -- and often were free.

If you're paying taxes in the UK, you're already "helping out" people who don't live within their means. You SHOULD be rioting. Most residents of western countries should be.

Unfortunately, middle class residents are the biggest stooges in all the world. We work our asses off, pay incredible killer taxes, and all to pay for some bureaucrats and idiots who live beyond their means.

Then, we die of high blood pressure and poor health because of all the time we have to sit in some sick building shuffling papers and clicking mouses just to pay the rent, the dentist, taxes, and incredibly high living costs.

Anonymous said...

Are you telling me the government will be able to pass a law that lets Mr. Six Figure Salary refi his home because he was "taken advantage of"?

Sure, why not?

After all, the government already passed a law that lets Mr. Nine Figure Salary on Wall Street get access to as much free money as he wants when his investments blow up (i.e. "opening the discount window").

Anonymous said...

Who gives a shit about which of the old corrupt parties' whore-a-tician came up with a bailout idea "first?"

The real dumbasses are partisan Democrats and partisan Republicans who are willing to give their guy a pass because "the other guy is doing it too."

If you're voting next year and you don't vote Libertarian, you deserve to have every single nickle in your savings and 401K -- and every single ounce of gold you own -- "borrowed" to pay for a ARM bailout. After all, you will have voted for just that.

sam said...

I have a proposal-

Instead of bailing out existing homedebtors with negative equity, why don't we just give their houses to random street people. At least the random street people have greater than 0 equity. And it is more just to award a randome street person a house than someone who actively contributed to f'ing up the credit markets.

Anonymous said...

To cope, I must find humor in the madness that is the housing debacle. Hence, this message from POTUS:

http://www.careerbuilder.com/monk-e-mail/?mid=23191730

Enjoy.

Shakster said...

I think the worst part is that the world associates America with Dik Faced aHoles like GWB,and Penis Cheney.America is where I will stay,but the Shitty Little Corporation called U.S.,and Washington DC can take their welfare sucking,carpetbagging presidents,and congress back to England.Ron Paul can't help either.BTW -Hillary needs an AXE to the face.

Flmtgguy said...

Instead of allowing FHA to bail people out. They should just raise the FHA Loan limit (max loan amount)to comforming limits(at least). The loan limits on FHA loans have caused many people who could have qualified for FHA to look for other options.Many of those people could not qualify for conforming loans and where forced to take out subprime loans with hiegher rates that will now adjust even higher.
Raise the limits to something relevant. FHA already offers 97% LTV refinance, only owner ocupied (no bail out for flippers). The loans already cary rates comparable to prime loans. These loans cary no prepayment penalty.
I wish some who knew something where in charge of this.

believer said...

George Bush is a liar. What about the help for the Katrina mess. All the smart people knew fooling with the government and the paperwork would garantee (?) that they would get a unquestioned payday. By the time the govenment gets it act together for this most people will have lost their house. Remember the meltdown is supposed to start next month. Any way George Bush is a liar. He cares about us commoners like he cares about a fly buzzing around his head. Get the fly swatter. The only reason that guy did that yelling (Cramer) and screaming routine was because he wanted BUSH to hear him loud and clear, drop the interest rate, fuck the little people, so they can still continue on with cheap money and playing the stock market. It apparently is working. A huge relief to CRAMER who now gets to play with money (stock monopoly) as if nothing happened. Just a glitch. I am like a lot of my friends, what can you do about it but just keep on living. I am so glad CALIFORNIA did not go for the BUSH BS. (well my republican coworkers did) But is sure seems we are the ones getting the most screwed. It is so tiring hearing about the mortgage mess and if it is not affecting you personally it seems like a story for people who are no body that you know which makes people distant from the whole mess. No one I know has a million in the stock market so they don't care if the market sinks to a thousand. Everyone I know put their money in a TSP so they spend their checks from pay day to pay. So if the government is so lackidasical towards helping people hold onto a house they can't afford bail out or not who is going to pay the mortgage again in a year. I just give up.

Anonymous said...

And some of you geniuses voted for those two idiots TWICE. Please do the entire world a favor and never breed!

Anonymous said...

"Greenspam couldn't fix the dotcom bubble and Bush can't eat pretzels alone for god sakes."

Damn it. It was a brand new Mac keyboard...now it's Diet Coke keyboard...but thanks for the laughs anyway.

BitterRenter said...

Um, the S&L debacle WAS bailed out by the taxpayers, considered to be the biggest transference of wealth ever, taking from the bottom 90% anf giving to the top 10%.

KILL THE RICH. NEUTER THEIR CHILDREN.

Anonymous said...

Hmmmm. Bush basic proposal is to keep you in debt, renegotiate the terms of your slavery, I mean ownership society. I was shocked, not really, that he did not advocate PRICE CONTROLS. By law, your house can never go down, the last high is the lowest price.

law of nature said...

Umm... government can't inflate the problem away. They can only buy time. Every bubble must pop. The currency bubble is the last to go.

All they're doing is to make the final day of reckoning that much more horrible.

Anonymous said...

As a bottom feeder investor I love the idea of 1099 forgiveness. That would allow people to send jingle mail to the bank(keys in an envelope) with no financial repercussions, or tax liabilities. This will motivate people to "just walk away" as Cramer said, which will cause a huge spike in bank REO's and foreclosures. The Banks will be so overwhelmed with inventory you might be able to buy that 500k dream home(500k gets a lot of house around here) for 250 or 300k, and I might be able to buy some nice cash flow investments (structured as no cash deals, or lease options) once again. I'll be able to rent my house for a $350 a month cash flow, and buy a house twice as big for the same monthly nut. Finally Bush is doing something in my favor. I know most people on here will be pissed about this, but I smiled when I read this.
Bottom Feeder in Philly

Anonymous said...

The solution is socialism and nationalized housing. the government will make sure all Americans own a government-built or approved house. Home sizes will be decided by family size. Best efforts will be made to ensure that all the races, religions, and different income levels will be living together in the same neighborhoods.

You can't be serious with this statement. I have busted my ass to get the home I have, and plan to buy a nicer one, when their is blood in the streets, with money I make from numerous businesses I have worked hard to create. Our country while not perfect, still allows the American dream of having a life of wealth and prosperity for those that have the balls to go get it. Those that don't work hard for the dream don't deserve to have something handed to them by Big Brother. People in this country are already looking for the handout. If we go to a socialist economy, we will become the laziest most pathetic nation in the world. Some of my tenants treat my buildings like shit, and don't even deserve their apartment, let alone a home given to them by the government. Do you want to pay 50% or more of your income to taxes to give some drunken crackhead a chance at home ownership, he doesn't deserve. I sure as hell don't, nor do I want to pay for anyone elses health care. There is a reason for poor and rich people. The rich bust their ass and make money. Many of the poor( there are hardworking people who just can't get a break so I don't want to make a blanket statement) sit around in a section 8 apartment, collect food stamps, and spend their welfare check on booze and drugs. Now you want to give them a house too!!! No Way! If you want to live the dream go work for it. No more freakin handouts.

Anonymous said...

Anyone who voted for Chimpy McDumbAss twice should do the country a favor and just kill themselves. Your deaths would remove a lot of retarded citizens from the voting booths.

Anonymous said...

"If a large number of people end up on the street, who do you think is gonna have to provide them food stamps, emergency health care, public housing, or whatever?"

Not the gummint. Presently, there is up to a two-year waiting list to get into section eight. It's not uncommon for a HUD-funded agency to be tapped out until next fiscal year. Do not pass Go, move straight to homeless shelter: no beds. Proceed to nearest bridge.

piston broke said...

"If we go to a socialist economy, we will become the laziest most pathetic nation in the world."

We're already there. Orchards around here have fruit rotting on the trees because they can't hire anybody to pick it, even for $10 an hour. Meanwhile the bums gather in the local parks for their morning coffee and donuts courtesy of the do-gooders. Then they break up and take their stations on corners to beg for cash so they can get wasted in the evening after a hearty dinner at the shelter.

What a country!