The Foreclosures are coming-Citizens hide your wallets....

[catnhatnh]

...because as sure as the sun rises in the East, the bailout is coming too...As sub-prime lenders slip slowly into comas and papers bewail the possibility of "millions" of foreclosures watch closely as certain politicians start talking about "saving peoples homes" while what they will REALLY propose is to save sub-prime lenders from their own insanity...because in order to prevent "homeowners" from bankruptcy and foreclosures the only step the Federal Government can take is to buy billions of dollars in bad debt from irresponsible and predatory lenders to protect recent and gullible "homeowners"...and this bailout will make the savings and loan deal (see:Neil Bush/Silverado affair) look like petty theft.I saw a recent post here urging compassion for those facing foreclosure and I agree-compassion is something they deserve. But compassion does not consist of spending billions of our tax dollars to save the predators of the loan industry to bribe them into sparing those they duped.I see several of my fellow DUers facing this prospect not because they were gullible as to loans but because they were betrayed by Bush's "great" economy and it saddens me greatly and if I could I would help each one.But I think even they would tell you that the solution is not one more corporate bailout....

[NMDemDist2]

1. I hvae been thinking the same thing, we're back to Iran-Contra and the S&L

bailout, same players and even larger pyramid scheme

I'm so glad I got out when I did and bought my little house for CASH $$$, no mortgage, no worries until my paycheck starts showing the pain of taxes

[melody]

6. Amen, same here

The time is now to downsize -- sell as high as possible, buy as low as possible,
and shore up the ship.

These guys destroyed the country and now they're going to make a fortune from others'
suffering.

[roamer65]

2. I smell another $1 trillion "Resolution Trust" level bailout.

:eyes:

[ben_meyers]

9. S&Ls where FSLIC insured

I don't think the sub-primes are. No government bailout required. That dosn't mean they won't ask.

[Raven]

3. Same as in the '80's.

Then the feds just took over failed banks' foreclosed properties and sold them. Borrowers are not going to get any relief here. What I want to know is...where the hell were the regulators while people were getting fleeced???

[catnhatnh]

4. Of course all the poor bastards in this round of misery...

will max out a series of over-issued credit cards trying to save their houses and then face the "bankruptcy reform" that will lock them into the credit card debt for years....

[judaspriestess]

5. the problem for alot of people not being able to get out of their

"sub-prime" loans is the housing prices have taken a downturn just enough to affect being able to refinance so many people can't refinance to lock in a better loan. There is no money in the properties. Thats what 80/20's (100% financing) were typically banking on, its fixed for 2 years or 3 years then the intention is to get refinanced. I don't see how bailing lenders is going to stop the foreclosure process for many cause they are left with no choice.

[MadHound]

7. Given the volume and scope of what this collapse could cover,

There can't be a bailout, there simply can't, we don't have the money. We're not talking billions, tens of billions or even hundreds of billions here, we're talking in the trillions if this thing really goes. For not only will this bring down the sub-prime lenders, but also the major banking institutions like Chase, Citibank, etc. This is where the sub primes get their money. And if it starts eating into the major banks, we'll watch our entire consumer credit sector collapse right along with it. We could very well be looking at an economic disaster that would make the Great Depression look like the Roaring Twenties.

This is the result of the lack of real economic corrections for the past fifteen years. Yeah, yeah, we had that little recession in '00, but really that was nothing. Greenspan, in order to forestall the worst effects of that, simply shifted the tech bubble over into a housing bubble by his continous dropping of interest rates. Thus an overheated, overinflated bubble continued to grow, and now it is going to go POP in a very, very ugly way.

The US simply doesn't have the money, being in massive debt ourselves, to forestall this or bail anybody out. If an economic firewall is built around the consumer credit sector, we might come out OK. But if not, we're all going to be hurting.

And while there are some folks who got into this predicament through no fault of their own, the vast majority who are hurting now brought this on themselves. I'm sorry, but if you are going to a sub prime lender, not putting a downpayment down, taking out an ARM, you're just asking for trouble. If you can't qualify for a good old fashioned five percent down, fixed rate mortage, then the odds are good that buying a house at this point in your life is not a good idea.

And part of this foolishness comes about due to Americans seemingly insatiable need for instant gratification. Rather than buying a starter house, putting the work and investment into it in order to realize a profit and move up to a bigger house, these people want the McMansion out in the gated community now, and are willing to do any stupid thing to get it. Even sadder is that their stupidity is going to hurt all of us, including those of us who chose wisely, did the right things, and didn't contribute to the problem.

[KayLaw]

11. I so agree with you

There's simply not enough money available to help. Also, some of the people hurting are Flippers who are not poor or unsophisticated, just speculators looking for a greater fool. We can't afford to bail out speculators who lose money in the real estate market or any market.

[BluePatriot]

13. So,

what's the relationship of the sub-primes to the banks? What's the signs we can look for, for banks being in trouble? Anyone know?

[Double T]

8. The sub-prime vicious loan sharks should never have been allowed......

to operate by offering their criminal mortgages. The bushco phony economy is spiraling downward as tax cuts to rich are sustained and millions of homeowners (actually home renters) will lose everything. I don't give a damn about the lenders and their investors; it is the borrowers that should be saved. Tent cities and shanty towns are coming to your area soon.

[BlueManDude]

12. The regulators and yes the borrowers bear some responsibility too

I mean really people - if it sounds too goo to be true then it is. Do peopel have to learn the hard way that mortgage brokers are not looking out for their best interests? It's amazing how many people make the biggest financial decision of their lives and don't bother to ask quaetions.

[Double T]

14. The financial institutions and lenders operate on a bait and switch........

policy whether we're talking about credit cards or mortgages. Don't defend their criminal behavior.

[jaksavage]

10. The cliff ahead

Our daily images are of the top 5% of people.
who can afford all the stuff
the other 95% borrow to appear normal.

The traps are too numerous to count
the top families simply bail out their errant family members
the rest of us just crash and burn

The media teases our ego
easy credit enables it
Out the window goes our empathy
with it goes our society

[Mr. Ected]

15. And Where, Pray Tell, Will These People Live?

Foreclosure will destroy millions upon millions of peoples' credit. Of course, there will be no new mortgages for several years for them. And guess what: the hit their credit scores will take will almost ensure that the RENTAL market closes the door on them too.

PS - Expect investment property owners to become the "new" predators.

[Dems Will Win]

16. = Several Million Hobos and Hobo Families Again

Great Depression II

[blues90]

17. You also have to include all the zero down car loans

That happened with the rebates a few years back .

I was never able to afford a home , I had one in the early 70's but that went to my ex wife .

If people have something they never had the hope to have hung in front ot their face chances are they will bite .

I wonder about all these adds and the emails I get about becoming rich in real estate . What is this scam all about ? The one fool giving away a free tape on how to buy homes without using your own money .