Bailout fails- Page 5

[son_of_a_gunn_25]

Posted: 9/29/08 at 8:04pm

The Dow dropped by 777 points. Surely its a sign from God! The perfect number 7 repeated 3 times like the trinity. This is His way of telling us that Obama is the anti-Christ. We should all repent and pray that our all-loving God doesn't further turn out his hate against us for allowing homos a place in our society!

(The above is an excerpt of Pat Robinson's segment on the 700 Club tomorrow.)

[JohnBoy2]

Posted: 9/29/08 at 8:05pm

Fine. That's what happens in a free market economy. The problem is, that the underlying issue with this whole mess has nothing to do with free market, and everything to do with government forcing lending institutions to lower their standards to make housing "affordable" to everyone. The government needs to stay out of it. Let whatever happens, happen, and let us come back from it, stronger, with a free market economy. Not some goofy socialist hybrid!

[YouWantitWhen????]

Posted: 9/29/08 at 8:09pm

MB - they just don't get it.

This is so much bigger than just the mortgage issue now.

And JB - stop rewriting history. This was due to greed all the way around. Many in the subprime loans were eligible for standard loans, but the commissions on the standard loans were not as high, so people were put into more expensive risky loans because it made more money for the mortgage brokers and bankers.

To put this all at the foot of government, and not address the culpability of the lending industry is beneath you. Updated On: 9/29/08 at 08:09 PM

[son_of_a_gunn_25]

Posted: 9/29/08 at 8:13pm

So the overinflated home prices pressured by the private sector had absolutely nothing to do with it then? The cause of this is greed. Greed of businesses wanting more money, the greed of the average American wanting to live beyond their means. Both should have known better, but I assign the greater blame to the mortgage companies because they knew what they were doing.

This goes far beyond just the mortage crisis now. This is not a black and white issue. Pointing fingers won't solve this problem. I don't think we can solve it completely, but we can mitigate its effects.

Exercise your right as a voter. Contact your Congressmen and Congresswomen and let them know mitgating the effects is key to their re-election.

Updated On: 9/29/08 at 08:13 PM

[nygrl232]

Posted: 9/29/08 at 8:23pm

Thanks for the link, Namo. Before I listened to that interview, I'd entertained the thought that McCain would probably forfeit the election, since he wouldn't want to preside over such a broken situation. But then Naomi brought up the excellent point that the govt knows exactly what it's doing, that this is more Bushology but worse.

[JohnBoy2]

Posted: 9/29/08 at 8:24pm

I'm not rewriting history. It sounds like you are. Also, I never said greed didn't play a role in it. All I spoke of was what is underlying the issue. It's a great big, complicated mess, and I don't want government (me) fixing it! And, if you think Barney Frank and Chuck Schummer don't have some culpability in all this, then you don't know Freddie and Fannie history. Especially around the 2002/2003 timeframe, when John Sununu, repeatedly tried to get tighter control over them (which Frank and Schummer fought) and when Frank pushed for riskier lending.
Updated On: 9/29/08 at 08:24 PM

[LePetiteFromage]

Posted: 9/29/08 at 8:47pm

Updated On: 1/13/09 at 08:47 PM

[YouWantitWhen????]

Posted: 9/29/08 at 8:48pm

I think everyone has some culpability in this mess.

This is a bi-partisan mess, exacerbated by the deregulation pushed by the Bush Administration coupled with the adoption of Gramm-Leach-Bliley.

The mortgages are just one component, the securitization of these loans, and the expansions of mortgage back securities and REITS as investments, coupled with highly leveraged investment houses can be blamed as well.

There was also the mortgage brokers, gaming the system, and violating their fiduciary obligations to both the lenders and the borrowers. One day you are a used car salesman, and the next, you are selling mortgages.

To let the markets sort this out at this point is to ask for a financial fiasco. So, do I want government in the middle of this, no. But, do I think government has to get involved to try and prevent a full-fledged meltdown...yes.

[LePetiteFromage]

Posted: 9/29/08 at 8:51pm

Updated On: 1/13/09 at 08:51 PM

[JohnBoy2]

Posted: 9/29/08 at 8:58pm

I want a meltdown.

[DottieD'Luscia]

Posted: 9/29/08 at 9:11pm

YWIW, so well said. I remember when I was in the market to buy a condo a few years ago, I was qualifying for places I knew I couldn't afford. Thankfully I didn't fall for any of it, and bought a place I was comfortable with. Definitely not above my means. It killed me when I was told I could qualify for a $500,000 mortgage!!! And the way they were pushing the 7 year interest only loans was amazing. I took a 30 year fixed mortgage, thank you.

[Yawper]

Posted: 9/29/08 at 9:11pm

MB, none of the good companies I worked for ever relied on bank or financial sector credit to make payroll or other everyday operating expenses. That's an unwise business practice.

[Mr Roxy]

Posted: 9/29/08 at 9:14pm

No you don't John Boy unless you are deranged. No sane person wants it.

Now maybe those same people who were against the bailout will change their mind after losing money in their IRA'S. The politicians who voted no were more interested in their reelection than they were about the good of the country. This is the sad part in this.

Instead of putting up $ 700 billion with a good possibility of getting all or part back now twice as much money has been lost. Way to go guys. NYC & State are in a world of hurt.

Good luck trying to sell big money boxes for the Mets & Wankees new parks. Who will move into the big condos going up all over the city? People crying about their favorite programs being cut are now going to feel real pain.

Updated On: 9/29/08 at 09:14 PM

[Yawper]

Posted: 9/29/08 at 9:19pm

Why are big condos going up all over the city when there's a housing meltdown across the country?

[madbrian]

Posted: 9/29/08 at 9:22pm

Asian markets have all dropped about 5% in their opening minutes.

[Yawper]

Posted: 9/29/08 at 9:27pm

and the planet continues to spin

[Mr Roxy]

Posted: 9/29/08 at 9:27pm

Many thought the party would never end. Boy were they wrong.

The planet contiues to spin - out of control.

Updated On: 9/29/08 at 09:27 PM

[Yawper]

Posted: 9/29/08 at 9:32pm

No, the planet is doing fine. New York City and state might not be. Why has no one answered my question about condos being built during a housing crisis?

[Mr Roxy]

Posted: 9/29/08 at 9:37pm

I answered it.

They built them thinking the wall street party would go on forever. They had no idea it would get this bad.

The planet is not doing fine. Many people,on main street, lost a ton of money.People will lose their jobs & companies will fail. Overseas is looking bad. How you can make a statement the planet is doing fine is mind boggling.

Updated On: 9/29/08 at 09:37 PM

[madbrian]

Posted: 9/29/08 at 9:37pm

My congressman voted against the bill, and I just sent him the following e-mail:

I do not understand your 'no' vote on the bailout bill. Are you willing to allow the credit market to freeze? This will certainly have a negative impact on countless Americans, including many of your constituents. Good companies that had nothing to do with the causes of the crisis will not be able to obtain credit, so they won't be able to pay their operating expenses, including payroll. I strongly urge you to reconsider your vote, otherwise I fully intend to vote against you in the upcoming election.

[Jane2]

Posted: 9/29/08 at 9:38pm

I have to agree-the planet is not doing fine. There is good reason to be worried right now. On more than one front.

[SNAFU]

Posted: 9/29/08 at 9:39pm

Yawper, New York City is housing market unto it's own. There is a lot of foreign money coming in buying these places up (specially with the Euro so strong against the dollar). Businesses buy them too. The average turn around on apartments is 5-8 years (according to real estate agents I have been talking to) In most of the various financial crisis' NYC real estate has either continued upward or stayed the same. The only time I saw property values decrease in Manhattan was right after 9/11. If this will hold true during this present crisis has yet to be seen.

[Mr Roxy]

Posted: 9/29/08 at 9:40pm

Very good.

I will do so also if anyone from New York voted against it. Hopefully, after people see how much they lost will tell these idiots who voted against it (to save their skin instead of saving the country)to reverse their vote. they should than be thrown out of office be they Republican or Democrat .

[Jane2]

Posted: 9/29/08 at 9:42pm

To me, saying that New York is the only one suffering is like those who thought only New York was affected by 9/11.

[Mr Roxy]

Posted: 9/29/08 at 9:43pm

Everyone is suffering.