Congressional leaders want President Bush to do something done about the subprime mortgage crisis:
Congress’ top Democrats demanded quick action on the subprime mortgage crisis, saying President Bush has been slow to address a situation that could cost millions of people their homes.
"This is a national crisis. Too bad it’s taken so long to realize that we have a crisis," Senate Majority Leader Harry Reid of Nevada said at a joint news conference with House Speaker Nancy Pelosi of California.
President Bush wants Congress to do something about the crisis:
Bush said Congress also has yet to act on any of the measures he proposed in August to help homeowners facing foreclosure. “These are sensible reforms” that would help people stay in their homes, Bush said.
As for most Americans, they prefer that Congress and President Bush stay out of it:
As the elections draw nearer, the government does not want to be perceived as doing nothing. I hope this poll allays their fears. Most of us recognize that doing nothing is what government does best.
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The world the way I see it regarding ANY subsidized bailout is that it shouldn’t be done one time. The only exception I see to this is if the funds come from a private party (such as family, etc.) that fully understands and is ABLE to take on the additional liability if necessary. I think it’s time to stop pointing fingers (unless you are prosecuting and will win) and move on to the long-term inevitable solutions…… we have to “crash”. I don’t believe we are finished with crashing because so many fixes are on the table, finger-pointing, and simple denial.
Anything other than letting the market correct to what it will bear will be a temporary solution. I would personally rather get it all over with and learn the new “normal” and move on with a solid foundation and business practices. We did not get here in a day, and there is no magic wand to wave to fix it all in an instant. I am responsible for my errors. Why should anyone escape that unless they were truly incompetent or completely defrauded during the loan process? I know it happened, but it doesn’t mean they can afford the home or property now that we acknowledge the issue.
This is devastating to a lot of people and at times it is impossible to nail down the most guilty party. As unjust as it may sound….. so what? We are here and need to take our lumps (yes, me too and I have several more to endure). This is IMO the only way we can start repairing the damage so many people were involved in creating.
These are just my opinions…..
Formertitleguy-
Thank you for summing up my position so nicely. Speculation ran prices artificially high, and even if they managed to bailout all the trapped borrowers, they would do so at keeping the prices artificially high, which also has it’s own issues.
A bunch of folks moving from their house with the unaffordable mortgage to the affordable rental does not strike me as tragic. I’ve seen a lot of kids over the years who’s parents handed them everything on a platter and they didn’t have to deal with the consequences of their actions. Every one of them were miserable. I don’t really see where this “bailout” will contribute to the happiness of individuals near as much as learning prudence and financial responsibility.
I think they are waiting to bail out the banks who financed and helped drive the over pricing of RE. Being as so many speculators cashed out, they’ll likely want to get back in again.
Someone’s got to pay for all that free money.
May as well be us taxpayers.
Best thing to do if you own is mail the keys and say good luck. I would but I rent. However my point is if you are going to bail out the idiot down the block bail me out to!!!
No kidding Americans don’t want a bailout! We also don’t want the tax increases that the Dems in Congress have proposed. The combo is a very deadly one for our economy. Why don’t people get it? Have we become so complacent or numb?
NO NO NO, I am *not* mailing in the keys. I only have 10 yrs remaining on the mortgage.
At that point I can finally quit my stress-filled job and be a table cleaner/floor mopper at McD.
Not everyone who bought a house did so in 2003-2005 you know!
Oh yeah… and I agree, no bailouts. Nobody offered to bail me out when I went upside-down on my first home in the last housing crash in the mid 1990′s.
Tough it out (as I did for 10 yrs) or go BK.
huh? what? no way.
the democrats want to save those poor wittle people who bowght too much house den dey could affowd and didn’t bodder to wead the contwact.
WHAT A SHOCK.
@Idaho Spud:
Suppose you could buy back your property (or another one very much like it) for 75 cents on the dollar in a couple of years from now, would you still not “mail in the keys” right now?
I know I would!
@austrian
No. My reasons are personal though and not financial – financially what you suggest makes sense.
However:
I signed an agreement to repay the money that I borrowed. There is no financial gain (including repurchasing my house at a discount) that would compensate for the loss of self-esteem and integrity I would suffer as a result.
It’s a stupid anachronistic way to live nowadays, but I don’t steal – even from mortgage lenders
I have a problem with a bailout in the sense that I have always been careful with my investing and so the idea of bailing out people that went overboard is not crazy appealing.
That said if their is a bailout it should be for homeowners and not banks or investors.
But I think the better solution is for banks to extend arms for people. It makes more sense than raising rates and being left with a bunch of foreclosures where the loan is more than the market value.