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Obama to Unveil $1.5 Billion in Housing Assistance in Vegas

A few months...

What a nice perfect little world you live in where people are able to find work in their field so quickly...

Again, why is this my problem? Why should your inability to find work be my concern?

Try to follow along:

  • Existing loans were packaged as mortgage-backed securities.
  • Credit rating agencies overvalued this paper which was sold to investors all over the world.
  • The collapse of the housing bubble caused the values of securities tied to real estate pricing to plummet.
  • This resulted in a liquidity shortfall in the banking system and declines in credit availability.

Now try this:

  • Interest rates were too low for too long.
  • The availability of cheap money accelerated malinvestment and speculation in the housing sectors.
  • The government was subsidizing housing and pressuring banks to service low-income (AKA high-risk) demographics.
  • Americans were taking on too much debt.
  • Americans had an anemic savings rate.

Outcome: The government-created housing bubble burst and many Americans were caught with their-debt-laden pants down.

Your solution: Pretend it was all Wall Street's fault and saddle future generations with more debt.

Businesses could not make payroll, or stock their stores, or purchase equipment because the big banks stopped lending. In other words, we were all almost totally Screwed!

I've begrudgingly accepted the necessity of some of the Fed's stopgap measures, including the steps they've taken to aid defaulting home-owners. My problem is the unwillingness of many Americans to accept responsibility for their financial situation. I also have a problem with the government's repeated attempts to attribute the housing bubble to a failure of free market economics when it was really monetary and fiscal policy that is to blame.

See above -- it was a little more complicated then that.

Hey, thanks chief...:roll:
 
Heaven forbid, government actually helping people! Jeez. :roll:

Umm...NOT government helping people...government running other people up in debt to give to other people...throw a little mopney into a hole...and do nothing.

I have a genius idea...the government should set up a stimulus checking account...and ANYONE that wants to contribute should be allowed to put money into it. NO tax dollars. It would be very interesting to see just how quickly that account would fill up.
 
Ethereal said:
People shouldn't get a mortgage if losing their job for a few months will cause them to default.[/U] Buying a house without any savings is just plain idiotic. Any sensible person should know that losing their job is a possibility, which makes their failure to plan for such an eventuality an act of irresponsibility; doubly so when they force society and our unborn children to incur the costs.

You know whats sad, is that sounds unreasonable to a lot of people.

The savings rate in the U.S. has been abysmal and financial planners recommend everyone have at least 3 months worth of wages saved in the event that you loose your job.

Relying on one single source of income, your job, is not wise in the long run.
 
Can you tell us what happens when people lose their homes? Have you ever lost your home? Obviously not.

Actually, my family is losing our home.

I'll give you a clue. You do not lose your home because you simply can't pay your mortgage.

That's exactly why my family is losing the house. My dad can't afford to pay the mortgage anymore. Shows how much you know.

You usually start by losing your job that leads to not being able to pay your mortgage. Given the economy and the lack of jobs there are, people do not go to a smaller house. A sizeable percentage end up with no house. It is how we've ended up with tent cities in California.

Now that you understand how somebody loses their home it is clear that allowing people to sink further and further into poverty harms future generations more than any kind of redistribution of wealth ever could. The proof is in the last 500 years.

I would support programs designed to provide transitional assistance to severely distressed demographics. Other than that, there is no reason to bail people out...

Can you name a time at which the human race has been more prosperous than in the last 120? I can't. It was only when governments started taking active steps to protect citizens from poverty that western civilization stopped having people die by millions from preventable diseases, having massive amounts of crime and major cities live in complete squalor.

It is simply not in the interests of the future generations you talk about to have the massive amounts of poverty that not doing anything would most certainly bring.

Our standard of living has improved for many reasons. Government policies were only one aspect of this improvement.

The Constitution also says that it is the government's job to provide for the welfare of citizens in the U.S. - allowing the large amount of "irresponsible home owners" to fall into any further poverty would go against that - do you not think? So what do we have? Your double standard considering taxation. It is not stealing if it benefits you.

If you want to debate the meaning of the General Welfare Clause I'd be happy to accommodate you in the US Constitution Forum. Start by studying Hamilton, as his views are more sympathetic to your interpretation than Madison's or Jefferson's.

You did volunteer. I didn't ask you to volunteer.

So, you favor a draft instead, or do you simply not support the existence of military?

Nor did I ever agree to pay for your salary.

Take it up with the Constitution. If you don't want your tax dollars being used to pay for the military then you can always propose an Amendment.

But here, let's replace your quote with this:

See? I can play the generalizations game too.

Is that supposed to apply to me?
 
A large amount of the forclosures are now on prime loans. Q4 had one of the highest deliquency rates of loans on record so far.

"Calculated Risk: MBA Q4 National Delinquency Survey Conference Call

Calculated Risk: MBA: 14.05 Percent of Mortgage Loans in Foreclosure or Delinquent in Q4

"The combined percentage of loans in foreclosure or at least one payment past due was 15.02 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey.

...

We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007, continued with the meltdown of the California and Florida housing markets due to overbuilding and the weak loan underwriting that supported that overbuilding, and culminated with a recession that saw 8.5 million people lose their jobs,” said Jay Brinkmann, MBA’s chief economist."
 
A large amount of the forclosures are now on prime loans. Q4 had one of the highest deliquency rates of loans on record so far.

"Calculated Risk: MBA Q4 National Delinquency Survey Conference Call

Calculated Risk: MBA: 14.05 Percent of Mortgage Loans in Foreclosure or Delinquent in Q4

"The combined percentage of loans in foreclosure or at least one payment past due was 15.02 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey.

...

We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007, continued with the meltdown of the California and Florida housing markets due to overbuilding and the weak loan underwriting that supported that overbuilding, and culminated with a recession that saw 8.5 million people lose their jobs,” said Jay Brinkmann, MBA’s chief economist."

Now we are starting to see the real effects of job losses....;)

A lot of the defaults up to now were people who really could not afford a home......
I did not see any mention of Interest only loans & ballon payments...
Many people screwed themselves by signing on to these debt instruments.....
Idon't feel bad for them at all....:roll:
 
low qual, no qual, adjustables, balloons, interest only's, negative amortizations...

U.S. foreclosures top 300,000 again - ContraCostaTimes.com

foreclosures top 300,000 for 11th straight month

more REO's predicted in 2010 than 09

obama's Home Affordable Modification Program isn't working!

empirically

bottom line

results, americans expect results

fix it, president obama, NOW

or bye, bye
 
Link


As some of us have stated here comes the stimulus money to save the Democrats.

Vegas is crashing because people don't have the money to spend on that fun house city right now. The market is determining this, not the recession. Vegas carved out a niche as being a playful place for adults to come and booze it up. It shouldn't be everyone else's problem that they chose this route in the economy.

Bailing them out is not going to change the fact that people aren't going there right now. My parents were in Vegas two months ago and they said it was dead.
 
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