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Bj T asked:
I don’t understand why people are complaining about this and why our government have to bail these people out. Most of my family are middle class people and they did not experience this because they were responsible. I am thinking it is the these peoples fault who failed to plan properly not the tax payers
The banks are there to make money. Loans are not free, people know but they always seem to have a false sense of security. It is the mostly the burrowers fault not the lender. No one can force you to get something you dont want or cant pay.That is why we have to sign contracts.
I don’t understand why people are complaining about this and why our government have to bail these people out. Most of my family are middle class people and they did not experience this because they were responsible. I am thinking it is the these peoples fault who failed to plan properly not the tax payers
The banks are there to make money. Loans are not free, people know but they always seem to have a false sense of security. It is the mostly the burrowers fault not the lender. No one can force you to get something you dont want or cant pay.That is why we have to sign contracts.
Tags: Banks, Foreclosures, Sense Of Security, Tax Payers
August 11th, 2008 |
Tags: Banks, Foreclosures, Sense Of Security, Tax Payers
August 14th, 2008 at 4:41 am
A lot of us are mad.
I blame the mortgage brokers. I still my Suntrust bank (located in walmart) guy pushing complex mortgages.
It’s like they are pushing timeshares to idiots.
August 15th, 2008 at 1:27 am
It is a combination of irresponsible people buying more house than they can afford in hopes that when interest rates reset they could either refinance or sell at a profit.
Mortgage companies lending to virtually anyone who can sign their name…Mortgages with hidden or virtually undetectable variable rate clauses.
Investors flipping houses and raising prices at incredible rates creating a bubble.
August 17th, 2008 at 9:41 pm
What caused it was corporate greed, through the loaning of higher balances than the individuals could afford, not realizing they would default on those loans there by not producing the income required for the banks to survive to payout the notes to their customers when they came due. The overall bad economy in many areas and high unemployment, on top of payments the individual could no longer afford, In addition to individuals who did not put their payments ahead of the new car, toys for the kids, etc. There by defaulting back to the banks who now do not have the invested income to make good on interest they can no longer pay. Which is directly tied to Wall Street and other investors, cause even more lost income for the banks. In other words poor decisions make by CEOs and higher management within the banks. This in turn makes the market unstable causing more problems for any investment company. It is a chain reaction that needs to be curbed.
August 20th, 2008 at 6:58 am
Really? So you don’t mind the banks giving irresponsible loans to people who had no hope of paying them? You blame the people who got screwed by the bank and evicted from their homes.
Well in that case you’ll be happy to know all your tax money is going to those wise and efficient banks that you love so much. I’m sure if you blew all your money through idiotic decisions like they did, your bank will just forgive you and bail you out as well.
August 22nd, 2008 at 7:20 pm
Is it people’s and the banks fault that shaky loans were handed out and expectations did not come to pass? Yes.
Unluckily, the ramifications of the foreclosures do not stop at the doors of the people being foreclosed on nor the banks. Absent any action from te government, foreclosures are expected to hit 2 million in the next year, on top of the foreclosures that have already occurred. This level of foreclosures hurts you and your family, even though you have been responsible, by lowering the value of your house (simple supply and demand - all the foreclosures place too much supply on the market).
Next, all the foreclosures impact the banks bottom line, meaning higher write-offs which will require higher interest rates to offset the higher losses. These rates will eventually filter down to credit cards, etc., eventually again impacting anyone who holds credit cards or wants to take out a loan in the future.
In addition, lack of liquidity will cause further tightening in the availability of loans, thus making it harder for everyone to get a loan.
Eventually (in the more near-term), banks will go out of business (Wachovia, WaMu), putting people on the street. These unemployed folks will impact the surrounding area as demand for day-to-day goods declines, hurting the Mom-and-Pop stores, supermarkets, etc. So, expect that layoffs in the baning industry will spur more foreclosures, layoffs elsewhere, etc., causing a ripple effect.
Now, if this effects were localized, other things besides a bailout could be done (entice other businesses or banks to come in and hire folks, tax breaks locally to get others to build plants and offices). unluckily, this is not localized and the impacts will be felt by all.
Add to this the turmoil in the financial markets which has erased equity people have built up in stocks and bonds. If you have invested, you have seen what the banking crisis has done to your holdings. Multiply this through the middle class and then magnify if there is no bailout. Innocent people get hurt badly.
though we might not like the bailout, nor having to pay for it (and we should pay less than originally thought under the revised bailout bill), sometimes the cure has to be tolerated for the long-term good.