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About that “loan”: Obama team writes off $7 billion taxpayers loaned Chrysler

danarhea

danarhea

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Seems that there is a double standard in place here. If you are a homeowner and can't pay your mortgage, there is no help for you. However, if you are a corporation, your debts can be forgiven, and billions of dollars are written off.

Is it just me, or does anybody else see a problem here?

Article is here.
 
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The way the Obama Administration has handled the auto companies (especially Chrysler) has been a disaster, and it's the first major screwup of his administration. Chrysler should've been allowed to go bankrupt under the normal legal process, which means that secured creditors get paid off before the unsecured creditors get anything. The government and the UAW now own this abomination. This can't end well.
 
Kandahar said:
The way the Obama Administration has handled the auto companies (especially Chrysler) has been a disaster, and it's the first major screwup of his administration. Chrysler should've been allowed to go bankrupt under the normal legal process, which means that secured creditors get paid off before the unsecured creditors get anything. The government and the UAW now own this abomination. This can't end well.
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I'll go one more than you. Chrysler shouldn't exist anymore.

Keeping a failing business on life support is just complete stupidity.
 
Didn't Air Canada, Air India and a few other international airlines have similar economic problems a few years ago when gas prices started going up? I agree. The Obama administration should have told them file for Chapter 11 or Chapter 7.
 
My preference has been not to assist the auto companies, as they do not pose systemic risk to the nation's economy. This latest development is disappointing and may well set a precedent that other companies aided by the U.S. government could seek to follow. The value of the equity stake likely will not approach that of the written-off loans, particularly on a present value basis.
 
danarhea said:
Seems that there is a double standard in place here. If you are a homeowner and can't pay your mortgage, there is no help for you. However, if you are a corporation, your debts can be forgiven, and billions of dollars are written off.

Is it just me, or does anybody else see a problem here?

Article is here.
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It's just you, because you don't care about the facts. The government is committing much more than $4 billion to help homeowners.

The Obama administration said Tuesday it is expanding its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers' bills on second mortgages.

During the housing boom, lenders readily gave out "piggyback" second loans that allowed consumers to make small down payments or avoid them entirely. While home prices soared, such mortgages were even extended to borrowers with poor credit scores and people who didn't provide proof of their incomes or assets.

But those loans, which are attached to about half of all troubled mortgages, have been an obstacle to efforts to alleviate the housing crisis. That's because borrowers who are trying to get their primary mortgage modified at a lower monthly payment need the permission of the company holding the second mortgage.

The new plan aims to get rid of that roadblock, administration officials said. "We're offering even more opportunities for borrowers," Treasury Secretary Timothy Geithner said in a statement.

The new incentives are estimated to help up to 1.5 million borrowers with second mortgages, Housing Secretary Shaun Donovan said. While data on how many household have been helped by the Obama administration's housing plans are not available, Donovan told reporters there have been "hundreds of thousands of applications."

The administration's second mortgage initiative will be funded out of $50 billion in financial rescue money already allocated. As an incentive to modify second loans at lower interest rates, mortgage companies would get $500 upfront for each modified loan, plus $250 a year for three years as long as the borrower doesn't default.
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Obama: Mortgage Help For Homeowners To Be Expanded
 
WillRockwell said:
It's just you, because you don't care about the facts. The government is committing much more than $4 billion to help homeowners.



Obama: Mortgage Help For Homeowners To Be Expanded
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Not homeowners. Homeowners who had bad credit and should never have been given loans. Or people who took second mortgages out on the houses they couldn't afford. The Obama administration is not helping homeowners that did things right. They are rewarding something that in most cases should not have happened in the first place.

Those of us who bought a house in our budget, paid our mortgage on time every month and made sacrifices to ensure said payment, are not getting an ounce of help. We don't need it, either. It's just not fun watching deadbeats & overspenders get it.
 
StandUpChuck said:
Not homeowners. Homeowners who had bad credit and should never have been given loans. Or people who took second mortgages out on the houses they couldn't afford. The Obama administration is not helping homeowners that did things right. They are rewarding something that in most cases should not have happened in the first place.

Those of us who bought a house in our budget, paid our mortgage on time every month and made sacrifices to ensure said payment, are not getting an ounce of help. We don't need it, either. It's just not fun watching deadbeats & overspenders get it.
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Like you said, you don't need it. And just because you don't is no reason to label those who do "deadbeats"...they are not.
 
WillRockwell said:
Like you said, you don't need it. And just because you don't is no reason to label those who do "deadbeats"...they are not.
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You think people who bought houses they could not afford and now are looking for help from the gov't NOT deadbeats? :rofl
 
danarhea said:
Seems that there is a double standard in place here. If you are a homeowner and can't pay your mortgage, there is no help for you. However, if you are a corporation, your debts can be forgiven, and billions of dollars are written off.

Is it just me, or does anybody else see a problem here?

Article is here.
Click to expand...

The real story here is that this is just the beginning of many Obama failures to come. Wasn't it Obama who argued that we needed to bail out these companies because letting them fail was not an option?

It is BAD/STUPID policy to EVER use the tax payer’s money to bail out ANYONE period.

Now, along with the billions that went to GM, the taxpayers are once more going to be expected to BAIL out the Governments $1.8 trillion deficits by being taxed to death thanks to poorly informed, poorly thought out Liberal policy that never ever leads to a solution, just more of the same.

But it won’t end here people, there is so much more to come and many more companies that will be bankrupt thanks to the bankrupt philosophy that now infests Washington DC.

Only Liberals can believe that one can BORROW and PRINT money to the tune of $1.8 trillion to lead a nation out of recession. But let's all be honest here, this had nothing to do with SAVING the economy and EVERYTHING to do with re-structuring it into a Socialist welfare state.
 
Kandahar said:
The way the Obama Administration has handled the auto companies (especially Chrysler) has been a disaster, ......
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You will find that this will be a recurring theme with this President; hang on to your wallets my friend, this is JUST the beginning.

BUT, you get what you VOTE for, or DON'T vote for.
 
danarhea said:
Seems that there is a double standard in place here. If you are a homeowner and can't pay your mortgage, there is no help for you. However, if you are a corporation, your debts can be forgiven, and billions of dollars are written off.

Is it just me, or does anybody else see a problem here?

Article is here.
Click to expand...

None of this since Obama took over has been about "helping" any industry, it's been about control over our lives via the Government. Anyone who thinks otherwise isn't really paying attention.
 
Since the government seems to be carelessly throwing around bailout money like confetti maybe we should all write the government acting like we are a corporation having financial difficulties so that we can possibly get some free dough as well.
 
dclxvinoise said:
Since the government seems to be carelessly throwing around bailout money like confetti maybe we should all write the government acting like we are a corporation having financial difficulties so that we can possibly get some free dough as well.
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It won't work, they use your level of campaign contributions as means testing.
 
Personally I never believed that it was loan. All the government did was throw money at Chrysler and hoped that it would come back to life. The old business rule "You cant fix something by just throwing money at it" applies greatly here.
 
Obama and the DEms owe the Unions, or are owned by the unions even as they control them as it were.

Letting GM or Chrysler fall putting the Unions out of work is a non-option. Period. The correct, economically correct answer was to let them fall and then create incentives for a new auto industry to rise from the ashes.

That however doesn't help the political cause of the unions. We're paying billions to keep unions under the control of a political party. Why do you think Card Check is so important? If, Obama and Co. had let the big three sink or swim, the Card Check issue would have died.


American's need to wake up and realize what's really going on here.
 
chevydriver1123 said:
Personally I never believed that it was loan. All the government did was throw money at Chrysler and hoped that it would come back to life. ....
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...and GM and Wall Street bankers and healthcare. It's easy throwing money at problems when it is not your own isn't it?

We can expect more of these irresponsible partisan antics from the great orator in the near future; hell, we haven't even begun to "re-structure" healthcare yet! :2wave:
 
Truth Detector said:
...and GM and Wall Street bankers and healthcare. It's easy throwing money at problems when it is not your own isn't it?

We can expect more of these irresponsible partisan antics from the great orator in the near future; hell, we haven't even begun to "re-structure" healthcare yet! :2wave:
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We don't agree on much, but sometimes we do find common ground on a few issues. This is one of them.
 
danarhea said:
We don't agree on much, but sometimes we do find common ground on a few issues. This is one of them.
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That is because you are still politically and morally confused; we are working on bringing you out of that dark night and into the light. :mrgreen:
 
WillRockwell said:
It's just you, because you don't care about the facts. The government is committing much more than $4 billion to help homeowners.
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No. Accurately stated, the government is wasting much more than $4 billion to help home buyers. No one paying a mortgage is a home owner. The owner of the property is the bank.

And there's absolutely ZERO constitutional authority for the federal government to be doing any of this.
 
WillRockwell said:
Like you said, you don't need it. And just because you don't is no reason to label those who do "deadbeats"...they are not.
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They are.

They're taking tax dollars from the people who did pay their mortgages, aren't they?
 
Truth Detector said:
It is BAD/STUPID policy to EVER use the tax payer’s money to bail out ANYONE period.
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That's not true. Bailouts are essential when A) The entire industry is on the brink of collapse, rather than a few specific companies; B) The industry in question makes the entire US economy function; C) The bankruptcy of the weakest links in the industry will create a cascade effect of bankruptcies.

The banks meet these criteria. Chrysler and GM do not.
 
Kandahar said:
That's not true. Bailouts are essential when A) The entire industry is on the brink of collapse, rather than a few specific companies; B) The industry in question makes the entire US economy function; C) The bankruptcy of the weakest links in the industry will create a cascade effect of bankruptcies.

The banks meet these criteria. Chrysler and GM do not.
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It is PURE speculation to suggest that entire industries would collapse if the Government didn't extract taxpayer’s hard earned wealth to bail them out.

It is also historically inaccurate to suggest that such attempts have been met with success.

In a Free Market, when companies fail as a result of their own decisions, they are allowed to fail or file for re-organization under chapter 11 bankruptcy laws.

Companies who are better managed can then take advantage of these failures thus making the most effective use of resources and capital. Those are the realities of how a strong market bases system works and is the BEST system evolved by man we have.

Any efforts to "manipulate" these markets that struggle for equilibrium in a competitive environment merely exacerbate the problems and the natural fluctuations in business activity we call "recessions."

Almost all of the problems we experienced last fall could be directly attributed to Government actions or lack of them. The notion that Government can now fix them certainly requires some level of willful denial don't you think?
 
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