May I act stupid please??

[STUNTS]

700 billion dollars to bail out the companies that put us in this mess?

OK. I know... the ones who went with the loans we say shouldn't have... but haven't these companies earned our trust over decades of giving loans that would leave us to believe that these loans were in our good interest?

2nd... Wasn't this real estate issue just the top of the iceberg.... meaning there has been a lot more $$hit building up to this point? Leaving me to believe that its just wasn't home owners faults.....blah blah blah...

So, Stupid fix... Anyone that has a mortgage rather you contributed to this crisis or not if you did, you did so either positively by not getting in a jam or negatively with the want of it being positive.... you know.. the american dream.... Give that money to all of us.... The smart/responsible ones will pay off their mortgages.... get outta debt and that will snow ball upward.... rather giving to the top and expecting it to snowball downward...

Now... this is all STUPID hypothetical....... but simpler is better... less is more..... and why bail out the companies? Bail out the citizens.... I swear this country does more for outside individuals then its own home grown individuals.....


I just really don't get it guys.... I feel sorry for a lot of people right now...

 

[S592R]

I pm'd this to Stunts but thought several of you might find it interesting.

http://en.wikipedia.org/wiki/Consumption_tax

please notice the Federalist papers quote ....

thanks

 

[Kingman]

This should help you see how many folks have subscribed to your thoughts regarding responsibility. The attached pic came out of the St of CA depicting the number of foreclosures. In Cali, we are looking at 1 in 64 households....as of Q2 '08. :thumbsdow

Cash is King right now.

IRVINE, Calif. – July 10, 2008 – RealtyTrac® (realtytrac.com), today released its Q2 2008 U.S. Foreclosure Market Report™, which shows foreclosure filings were reported on 739,714 U.S. properties during the second quarter, a nearly 14 percent increase from the previous quarter and a 121 percent increase from the second quarter of 2007. The report also shows that one in every 171 U.S. households received a foreclosure filing during the quarter.

Nevada, California, Arizona post top state foreclosure ratesForeclosure filings were reported on 202,599 California properties during the second quarter, the highest total among the states and a rate of one in every 65 households — the nation’s second highest state foreclosure rate. Foreclosure activity in California increased 19 percent from the previous quarter and was nearly three times the level reported in the second quarter of 2007.

 

[STUNTS]

unbelievable Kingman!!! WOW!! I question how many of the homes in foreclosure are homes bought by contractors or rehab companies to rehab/fix and flip?

The darkest areas of red are locations of larger populations or growing populations.... especially vegas...

and with what? 50 million illegals in this country with fake ID's who somehow got loans.... they sure would be in those areas too...

blows my mind!!

 

[RALPHIE]

I'm surprised Texas shows such a small rate, as its border to Mexico comprises half of the total border length.

 

[cmoody32]

I'm surprised Texas shows such a small rate, as its border to Mexico comprises half of the total border length.

Oil

 

[PILOTJPW1]

Oil and probably state law.

It is interesting about Texas. As you see all the other area's are high growth, huge "ethnic" populations. Maybe state law prevented some of the crazy no money down deals. I also believe Texas went through dramatic housing fall back in 2000 or so.


This bailout crap will just prolong this credit crisis for another two years.

Buying the foreclosures for speculation seems like a bad idea to me, still, What are you going to do with them? You can be a slumlord to illegals. But, You sure will have a hell of time selling them cause nobody can qualify to finance a purchase.

 

[skyrex]

I too am disturbed by what has gone on with this real estate/economy crisis for a different reason. Yes, a lot of companies who should have known better made a lot of bad decisions that are hurting us all....however on a whole the average american does not give a rats a$$ about saving, planning for their financial future and making informed decisions about what direction they are moving. On a whole our country is an instant gratification society that spends itself into ridiculous debt and then cries foul when the bill comes due. :thumbsdow

A lot of these real estate loans, such as interest only, 100% financing, adjustable rate loans, and negative amortization loans were quite simply made to put people into homes who had not shown the financial acumen to handle the responsiblity of making a mortgage payment. Buying a home should be within everyone's reach, but they should have to earn the ability to buy the home, not have it given to them. This never would have happened under the old rule of 20% down minimum to purchase. And I am advocating this despite the fact that I bought my main house and business with a 100% financing loan in 2002. However I did have the means and income to make the nut.

Finally the biggest irritation to me is the fact that people think this is a bailout just for the businesses that screwed up. It is not. When a crisis like this occurs credit tightens and then all types of important financial activity grinds to a halt. For things to get better loans have to start being made again. Companies that have been around and doing well for 170 years don't just up and die on a regular basis. These are extraordinary circumstances and by not helping these companies we are also not helping the little guy. Politicians know and understand this but still voted down the bailout not because it was the right decision, but because there is an election in 5 weeks. They are bowing to uniformed voters who don't want to see big business helped, but can't balance their own check book. That is not good leadership, it is just political :bs! How is the stock market dropping like a stone helping the country? It effects retirees, 401K's, pension plans and most importantly the people who are financially responsible who save and invest. These people need to be protected as well.

That said I do feel for the people who have lost money and homes during this real estate crisis. I have mentioned before that I have a property in Vegas that has taken a tremendous hit. But I made the purchase and I make the payment every month. I am responsible for my decision.

Sorry for the diatribe...but this topic irks me a bit. That said I hope this turns around soon. I will try to end this with some Forum humor. Oh how I wish I had bought a second GT instead of my Vegas property. :biggrin :lol :cheers

 

[Jones]

unbelievable Kingman!!! WOW!! I question how many of the homes in foreclosure are homes bought by contractors or rehab companies to rehab/fix and flip?

The darkest areas of red are locations of larger populations or growing populations.... especially vegas...

and with what? 50 million illegals in this country with fake ID's who somehow got loans.... they sure would be in those areas too...

blows my mind!!

There isn't enough profit in the foreclosures yet for the "flipping" to start, maybe 2010. Most investors I know haven't bought anything residential. However, there can be some deals found on the commericial side. Foreclosures are expected to significantly increase next year.:frown

Foriegners can legally purchase prooperty in US. The Queen of England is one of the largest landowners. There wasn't a need for fake ID's. Wamu was accepting the Matricula Consular card from Mexico in place of SS#. :frown

PM me your email, I'll send you a hilarious clip explaining the sub-prime lending failure.

 

[Empty Pockets]

A lot of these real estate loans, such as interest only, 100% financing, adjustable rate loans, and negative amortization loans were quite simply made to put people into homes WHO HAD NOT SHOWN THE FINACIAL ACUMEN to handle the responsiblity of making a mortgage payment.

And Fanny & Freddy (as we all are now well aware) were THEE biggest offenders in this area...emboldened by the '77 CRA which basically said there'd be hell to pay if a bank didn't find SOME WAY of loaning $$$ to people with unworthy credit histories.

Here - IN THEIR OWN WORDS - are the congressional "supporters" of Fanny & Freddy 'apparently'(?) lying thru their teeth about how SOLID both outfits are/were. Please note their treatment of those who believed otherwise.

http://www.youtube.com/watch?v=_MGT_cSi7Rs

And pls note Frank Raines is now Obama's financial advisor. 'Swell...

 

[RALPHIE]

...It effects retirees, 401K's, pension plans and most importantly the people who are financially responsible who save and invest. These people need to be protected as well....

On Monday, a not publicized guarantee by the Treasury that freezes and insures the 401K's and other money market funds to a minimum value of September 19th, effectively protecting peoples' retirement funds.

 

[RALPHIE]

On Monday, a not publicized guarantee by the Treasury that freezes and insures the 401K's and other money market funds to a minimum value of September 19th, effectively protecting peoples' retirement funds.

Here's a link to the report....

http://abcnews.go.com/Video/playerIndex?id=5918043

Supplement:

How long does the guarantee last?
The program is intended to address temporary dislocations in credit markets. The initial plan will operate for three months, after which the Secretary of the Treasury will review it. The Secretary has the option to renew the plan until September 18, 2009. If the Secretary renews the plan after the three-month review, funds must re-enroll to extend their participation.

http://www.ici.org/home/faqs_guaranty_plan.html#TopOfPage
http://www.treas.gov/press/releases/hp1161.htm
http://www.treas.gov/press/releases/hp1163.htm