Some days, I can't believe what I read from our "leaders".
For respected bond trader Bill Gross to be calling for a federal housing gambler bailout with taxpayer money is not only pathetic, reckless and wrong, it's actually immoral. Either Gross knows how bad it's gonna get and is in panic stage, or there's some way he'll make money off of a government bailout.
Why should taxpayers who go to work, pay their bills, read fine print, live within their means and make rational financial choices send their hard earned income to others who gamble, live beyond their means and make poor financial choices?
FOR THE LOVE OF GOD HAVE PEOPLE GONE INSANE?
Sign the online petition against this crap here. We can help defeat this stupid thinking, just like the immigration law mess.
If the US government bails out failed flippers and housing gamblers in ANY way, then it will officially be over. Rome will have burned. And the US government will no longer be deserving of your support. But I have faith. Even George Bush and Congress aren't this stupid, reckless and corrupt. Right? If Bush or Congress try to increase their record-low ratings with a housing gambler bailout, my prediction is that it'll backfire worse than Schiavo.
Here's Gross and his "wisdom". I need to go puke now. And I'll also try to figure out how Gross's bailout call might directly financially benefit PIMCO and Bill Gross.
The ultimate solution, it seems to me, must not emanate from the bowels of Fed headquarters on Constitution Avenue, but from the West Wing of 1600 Pennsylvania Avenue.
Why is it possible to rescue corrupt S&L buccaneers in the early 1990s and provide guidance to levered Wall Street investment bankers during the 1998 LTCM crisis, yet throw 2,000,000 homeowners to the wolves in 2007?
If we can bail out Chrysler, why can’t we support the American homeowner?
This rescue, which admittedly might bail out speculators who deserve much worse, would support millions of hard working Americans whose recent hours have become ones of frantic desperation.
Now here's someone sane on Gross being a doof:
More Bailouts Could Bring Disaster Down the Road
In my humble opinion Mr. Gross is right about only one thing: that Mr. Bernanke is unable to eventually stop a destructive housing deflation.
At least now the pundits are admitting that a housing deflation is at the heart of the economic problems. That is a watershed event.
But for the “government”, which I thought was using taxpayer money (except for the $9 trln in debt it has borrowed), to bail out malinvestment is only to increase the problem. If you don’t punish your child for playing with matches, he may one day burn the house down.
Of course Mr. Gross, being worth $500 mln plus, really doesn’t worry about how much of his tax dollars are going into the abyss; he just wants to keep earning his fees.
39 comments:
Yes, bitter renters, you along with the portion of fiscally responsible homeowners are going to be getting the bailout bill.
GOP WELFARE FOR THE RICH
When will these guys figure it out...it the prices stupid. It wouldn't matter if the government gave every FB 25K to help with payments, it will only prevent the inevitable. It's like giving a person with a gun shot wound morphine. It will make them feel better, but eventually you will have to treat the wound. When prices fall to the point where the average family can afford to buy the average priced home with a conventional loan, the problem will be over. Gross, Bernake, Greenspan, Dodd, etc know what the problem is, we'll see who has the guts to come out and admit it.
Capitalism isn’t broken, in order for there to be winners there must also be losers. The money needs to come from somewhere other than Ben’s ass. You can’t fix a problem caused by loose money with more loose money and keep the integrity of your currency. I can’t wait for the current administration to be gone and for the bill for all this economic stupidity to arrive.
a bailout would cause inflation. how would high inflation impact bill gross?
then if rome burns you should carry torches too and loot. You ought to all start spec'ing on Cal houses and get help marking em up, get more equity out and repeat the process 50x. If u reliably get 25-50k out of each house net of "equity" planting in your 50 or so spec-ing then you make $1-2M easy. I have already prepared myself for just such an occasion.
It seems Bill has also succumbed to the 6" hooker heels.
Three weeks ago he accused others of doing so.
Man, those must be some heels!
AND YOU WILL, PAY FOR MY HOUSE!!!
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SUCKERS!!!!
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HOW WAS IT RENTING FOR THE PAST FEW YEARS, AND NOW YOU WILL BE PAYING FOR MY HOUSE!!!!
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HAHAHAHAHAHAHAHA!
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DOPES!
China (both of them), Japan, and Korea own Congress and from the looks of headlines, they own Hillary's ass cheeks too.
They will pony up to bail us out, just watch. A RE bust would be bad for us, but in China there will be riots with millions in the streets. Japan is scratching its way out of a 12 year depression and they have to keep those exports flowing as well.
He is a socialist - a rich one but a socialist. He probably thought everyone would like him for his socialist schemes (like the majority of people on this blog)...
Marky Mark
BILL GROSS IS A REPUBLICAN.
Like I said before, it's the socializing of finance thanks to GOP. Welfare for Republican bankers!
Hey Keith, tell us if DOPES lives in a bubblicious market.
"I can’t wait for the current administration to be gone and for the bill for all this economic stupidity to arrive."
WTF? You think a change in administration is going to make any diff? That dumb ass Obama wants the mortgage companies to pay fines that would be used to bail out the FBs holding the bag. Sounds great if you're one of the morons who signed all those papers and is stuck in an underwater RE deal. Legal reality intrudes when you realize 1) the loans were perfectly legal when written, and 2) many of the companies he wants to fine have filed bankruptcy. What's next for this fool? Should we bail out people who lost their shirt in the dotcom bust?
And this is what passes for "progressive" thought these days among the D crowd. Man we are sooo doomed.
I believe Bill Gross is very heavily invested in Fannie Mae. Maybe Fannie is on her death bed? Pray it is so. If Fannie dies, homes will be affordable again.
I'm thinking Bill Gross is trying to save Bill Gross's ass at this point. The man had a Bond Bull Market for 20 years, and now he's probably wrong sided on plenty of bets. Let the elite bastards eat cake!
He's probably a capitalism-cheerleader-republican who now turns into a socialist when it suits his needs.
That describes most republicans, conservatives and whatever else you want to call those vile excuses of subhuman garbage. They HATE helping anybody until THEY need help- illness, aged parents, disabled kid- then they whine and cry for "society" to help them.
THey're the absolute worst creatures on the planet.
We still have folks at HP that can't seem to figure out that it's the elites of both corrupt parties against the rest of us. At this late hour they can't figure this out? It just goes to show we always get the representation we deserve.
For all the folks who scream Republican or Democrat, please extract your heads out of your asses!
Westparker... its when the average person can buy the average house without a loan....
you to have been brainwashed like the average sheeple
please dont tell hillary that the farm feilds she lives in today were once tobbaco feilds, until after she puts regulations and interferences on all tobbaco growers that give control of her own backyards to some other busybodies and coppers to raid her gates...
From "dopes":
AND YOU WILL, PAY FOR MY HOUSE!!!
.
.
SUCKERS!!!!
.
.
HOW WAS IT RENTING FOR THE PAST FEW YEARS, AND NOW YOU WILL BE PAYING FOR MY HOUSE!!!!
.
.
HAHAHAHAHAHAHAHA!
.
.
DOPES!
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Hey guy - I'm sure that you honestly believe that you have half a mind, so why not try this quick exercise: show us how objective you can be and step back for a second, try to remove YOURSELF from the issue, and then read what you just wrote with a totally clear mind. Wouldn't you agree that the person writing this statement actually appears to be "proud" of what comes down to essentially __begging__? And wouldn't you agree that the fact that this person would actually laugh at people while stealing from them, rather than express gratitude, reveals him to be monstrously self-obsessed, sociopathic, and completely void of any integrity whatsoever? And finally, wouldn't you agree - totally objectively now - that the best word to describe such a person is "scumbag"?
Just a hypothetical question - not personal!
- Bill
P.S. You aren't getting bailed out. You don't own a bank.
Shakster calls for Gross to eff-off ,and die.
8/29/07, 4:00 PM. The PPT is alive and well. HPers take it in the shorts again.
The bailout prep is in in full swing, even "Big" Bill Gross is now on board.
Dow 16K by years end.
NEW YORK METRO AREA.
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.
NO BUBBLE HERE!
Hey, "Bitterrenter" -
The fact that you consider "most conservatives" vile subhuman garbage shows that you're an embarrassingly simple person.
BILL GROSS is garbage, because he advocates something that is clearly and fundamentally immoral and disgusting.
CHARLES SCHUMER, CHRISTOPHER DODD, HILLARY CLINTON are garbage for the same reasons.
Ironically, it is disgustingly simple-minded and ignorant people - like you - that are the most to blame for the current state of this nation and its economy, regardless of their "political affiliation" let's be very clear about that.
(Sorry for the railing; just tired of shitheads.)
Bill Gross has a bond fund that will tank if interest rates go up. He is fighting for survival!
And btw, "dopes" -
I really love your complete misuse of grammar, punctuation, spelling, CAPITAL letters, meaningless spaces and periods, and exclamation points!!!!!!!!!!!!!!!!
You will, of course, choose to dismiss the following as simply an insult (because "truth" and "reality" aren't the kinds of things that matter to your type) but I will expose to you that it has been shown that bad spelling and grammar bear a very direct inverse relationship to IQ. (In fact, there is evidence that they are possibly closer gauges of IQ than most standardized tests.)
Sorry - I'll leave you alone now.
GOP GAY OLD PARTY
Westparker--
Very well said. Bottom line truly is what you said in one sentence...When the average family can afford to buy a decent house with a conventional loan, the problem will be over.
I usually like what Old Bill Gross has to say, but Bernanke can't pull a rabbit out of his A$$ on this one, and save the day. What goes up, must come DOWNNNNNN, no easy fixes on this one.
Make sure you go sign the petition folks
http://www.petitiononline.com/bailout/petition.html
bitter idiot
what do you have to say about clinton, schumer and dodd calling for a bailout? you vile left-wing pieces of trash are pathetic
Keith, you dont really believe that Bill Gross cares about all those families who'll be thrown to the wolves do you? Gross's heart is with the wolves.
Didnt you just read where another London based hedge fund Cheyne is being force to liquidate their assets to close out their positions?
This is what Bill Gross wants to put a halt to.
But c'mon Keith these private financiers have looted our economy through this ponzi scheme. They created and traded trillions of dollars of debt backed by now defaulting home loans.
Freeze the mortgages and write them down to payable levels. Now Bill Gross wont want to see that happen either. What Bill Gross wants is 100% bailout of his friends on Wall Street and London who set up shop in the unregulated Cayman Islands.
But if the US Govt allows all these foreclosures to occur on schedule then things could get down right frightening in this country.
A new dark age is not some off in the distance fantasy. We are sitting at the edge of it right now, today.
Could this be part of "The Bill Gross Rescue My Ass Bailout"? I'm leaning Hyperinflation after reading the dribble from Benny to Chucky.
The Honorable Charles E. Schumer
United States Senate
Washington, D.C. 20510
Dear Senator:
Thank you for your recent letters of August 8 and 22, in which you express concern about the potential effects of volatility in financial markets and the tightening of credit conditions on homebuyers, consumers, and the economy as a whole.
I want to assure you that the Federal Reserve, in cooperation with other federal agencies, is closely monitoring developments in financial markets. As you recognized, the Federal Reserve has also taken steps to increase liquidity in the markets. In particular, our changes to our discount window program are designed to assure depositories of the availability of a backstop source of liquidity so that concerns about funding do not constrain them from extending credit and making markets. Also, the Federal Open Market Committee has stated that it is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.
I share your concern about the potential impact of scheduled payment resets on homeowners with variable-rate subprime mortgages. Over the next several years, many such homeowners will face significantly higher monthly payments and, consequently, an increased risk of losing their homes to forced sale or foreclosure. The federal banking regulators have encouraged banks and thrifts to work actively with troubled borrowers to modify loans or to refinance as needed to avoid default or foreclosure and have jointly issued guidances to address underwriting and disclosure practices related to subprime mortgage lending.
The twelve Federal Reserve Banks around the country are working closely with community and industry groups dedicated to reducing the risks of foreclosure and financial distress among homebuyers. The Board is also engaged in these issues; for example, Governor Randall Kroszner serves as the Federal Reserve’s representative on the board of directors of NeighborWorks America, which has a program to encourage borrowers facing mortgage payment difficulties to seek help by making early contact with their lenders, servicers, or trusted counselors. And as I noted in my testimony in July, in order to strengthen consumer protections, the Federal Reserve Board is currently undertaking a comprehensive review of the rules regarding loans subject to the Home Owner Equity Protection Act as well as some rules pertaining to mortgage-related disclosures under the Truth in Lending Act.
It might be worth considering at this juncture whether the private and public sectors, separately or in collaboration, could help the situation by developing a broader range of mortgage products which are appropriate for low-and moderate-income borrowers, including those seeking to refinance. Such products could be designed to avoid or mitigate the risk of payment shock and to be more transparent with respect to their terms. They might also contain features to improve affordability, such as variable maturities or shared-appreciation provisions for example. One public agency with considerable experience in providing home financing for low-and moderate-income borrowers is the Federal Housing Administration (FHA). The Congress might wish to consider FHA reforms that allow the agency more flexibility to design new products and to collaborate with the private sector in facilitating the refinancing of creditworthy subprime borrowers facing large resets.
As you note, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac are currently assisting in subprime refinancings. However, the GSEs’ charters limit their ability to take on higher-risk mortgages and their programs are relevant only to a relatively small share of subprime borrowers. The GSEs should be encouraged to provide products for subprime borrowers to the extent permitted by their charters. The current caps on GSE portfolios–which were imposed for safety and soundness reasons-need not be lifted to allow them to accommodate new borrowers. Currently, the GSE portfolios include substantial holdings of GSE-guaranteed mortgage products, which are easily placed in the private secondary market even under current conditions. Thus, the GSEs could readily sell these securities to make space for new mortgages if they wished to do so. Policymakers may also want to encourage the GSEs to increase their mortgage securitization efforts, which are not constrained by their portfolio caps.
We will continue to keep the Congress informed of developments in the subprime markets and in the credit markets more generally. As you know, Federal Reserve governors and staff have made numerous appearances before the Congress and in other forums on subprime-related issues. Board staff members have continued to brief members of Congressional staffs on these matters. Board staff members are also assisting the Government Accountability Office in the report that they are preparing that will provide a comprehensive review of developments in the subprime mortgage market.
Again, thank you for your interest and please be assured that we are following these issues closely.
Sincerely,
Ben S. Bernanke
The legal ceiling for our national debt is $8.965 Trillion. We are, and have been in technical default the last couple of weeks, yet not a frigging word from the so called "business news journalists". Can I add a phrase to my oxymoron list? What a bunch of ass wipes!
New all-time high Tue 08/28/07
National Debt 8,984,216,518,515.89
Keith,
You said that they cannot be so "stupid, reckless and corrupt"
no?
http://www.silverbearcafe.com/private/iraqswindle.html
I hope this isn't accurate.
One party creates the problem, the other fixes it, back and forth, again and again, and the rage between the 2 parties continue.
The "party" Ideology is a scam, even the Independents are in on it, and yes, I think Mr. Ron Paul might be "in on it".
Scam, scam, scam, that is what it seems to be about these days, but I will have no part in it.
A bail-out WILL NOT stop this train wreck.
"Pushing on a string", I think it is termed...
A bail-out will just let more privaledged people scam, it will NEVER reach the homeowners.
Maybe a few crumbs, but ...
"No Cake for YOU"!!!
When will we see articles on Hillary saying she is bailing the fools out?
bailout only if it's all funded by PIMPco's Gross.
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