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Mortgage Rate Freeze Plan...


Fergasun

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I'm surprised a thread already hadn't been started on this. I'm wondering what everyone thinks about this. Personally I think it's a silly idea that will reward people that got loans they couldn't afford, and banks that gave them the loans.... although it seems like this will only delay the inevitable for the whole market... let's kick the can 5 years down the road.

I find it funny that people with good FICO scores will not be able to get a lower rate locked in.

Hope this makes people open their eyes more to someone like Ron Paul...

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Took out a loan responsibly and can "afford" the payments without "stress" (as determined by Paulson)? You're screwed.

Already behind on payments? You're screwed.

Waiting and hoping that prices come down to be in line with historical fundamentals? You're screwed.

Took out a ridiculous loan and are just making the payments on the teaser rate? Congrats--you've been bailed out.

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Yeah, this is retarded. We should just let all these people file for bankruptcy instead. Then EVERYONE WINS! :party:

You probably dont "get" what is funny about that post unless you are familiar with the bankruptcy laws in this country. And if you dont see WHY the mortgage freeze plan is a good idea, you probably dont know why they are doing it and should read up on it.

And why does Ron Paul's name come up everytime someone mentions America not being perfect? Its annoying.

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I'm not sure how I feel about this one. I see both sides fairly clearly.

Part of me wishes the whole damn thing would crash. I'm sorry, but $900,000 for a 3 bedroom house in Alexandria is ****ing retarded. Let the market correct itself.

That said, I'm not too fond of a financial crisis, either. The main issue is the Fed playing it fast and loose with interest rates for so long. Greenspan screwed the pooch on that one.

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Well... I'm in the market for a house. My real estate agent says there is also talk of the Fed rate dropping from 6.25% to 5.25%. IMO, I highly doubt that would happen. That's way too big of a drop. It's unjustified.

The drop would be made so that people being threatened by foreclosures can refinance.

Apparently, around Dec 11th, this Rate drop will be discussed.

I don't believe it'll happen... and if the rate drops, I doubt it will drop more than 0.25%

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Yeah, this is retarded. We should just let all these people file for bankruptcy instead. Then EVERYONE WINS! :party:

You probably dont "get" what is funny about that post unless you are familiar with the bankruptcy laws in this country. And if you dont see WHY the mortgage freeze plan is a good idea, you probably dont know why they are doing it and should read up on it.

And why does Ron Paul's name come up everytime someone mentions America not being perfect? Its annoying.

Bankruptcy is bull**** too.

I don't want the economy to crash, but I do want those greedy ****s responsible for this to suffer. I don't want anyone to lose their homes either. So I understand the need for this to be a first step in saving our fiat money system. I just don't agree with this fiat money system that is based in debt. Almost everyone seems to be in debt one way or the other just as the country is.

Well... I'm in the market for a house. My real estate agent says there is also talk of the Fed rate dropping from 6.25% to 5.25%. IMO, I highly doubt that would happen. That's way too big of a drop. It's unjustified.

The drop would be made so that people being threatened by foreclosures can refinance.

Apparently, around Dec 11th, this Rate drop will be discussed.

I don't believe it'll happen... and if the rate drops, I doubt it will drop more than 0.25%

You see, that's great right? Less debt you'll have but with inflation rates increasing because of it, it's actually more debt you have.

I'm not sure how I feel about this one. I see both sides fairly clearly.

Part of me wishes the whole damn thing would crash. I'm sorry, but $900,000 for a 3 bedroom house in Alexandria is ****ing retarded. Let the market correct itself.

That said, I'm not too fond of a financial crisis, either. The main issue is the Fed playing it fast and loose with interest rates for so long. Greenspan screwed the pooch on that one.

I'm right there with you.

Even Bernanke said he's just doing what he's being told to do.

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Wasn't it the overall availability of $$$ that led to long-term interest rates being so low for so long?

Interest rates remained low to keep the entire economy humming along. Anyone in Greenspans position would have done the same thing. Lenders were the ones that decided they could make a quick buck by giving loans to people that probably werent going to be able to pay them back.

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Interest rates remained low to keep the entire economy humming along. Anyone in Greenspans position would have done the same thing. Lenders were the ones that decided they could make a quick buck by giving loans to people that probably werent going to be able to pay them back.

Greenspan should have seen the growing bubble a long time before. JMHO.

At some point it was decided that economic downturns were no longer necessary as a part of long term growth/stability, and the entire economy can be manipulated at will thru printing money. While monetarist theory isn't all bad, if you're gonna play that game, you should pay attention to bubbles like that caused by your policy.

again, jmho.

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The financial markets are not modeled on crime and punishment. The lenders just want to minimize their losses. You have to look at this from the lender's standpoint:

Took out a loan responsibly and can "afford" the payments without "stress" (as determined by Paulson)? You're screwed.
You can pay back everything you borrowed according to the original terms? Please do.
Already behind on payments? You're screwed.
Can't make the payments? We'll take your house and try to recover our money that way.
Waiting and hoping that prices come down to be in line with historical fundamentals? You're screwed.
Didn't borrow money from us? We don't care about you.
Took out a ridiculous loan and are just making the payments on the teaser rate? Congrats--you've been bailed out.
You can only afford to keep up with what you've been paying? We'll take it for now.
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The financial markets are not modeled on crime and punishment. The lenders just want to minimize their losses. You have to look at this from the lender's standpoint:

You can pay back everything you borrowed according to the original terms? Please do.

Can't make the payments? We'll take your house and try to recover our money that way.

Didn't borrow money from us? We don't care about you.

You can only afford to keep up with what you've been paying? We'll take it for now.

Accept, that moeny isn't being paid back at the percent they have been paying. When inflation occurs due to the dip in the interest rate, the value of the dollar goes down. Cost of living goes up to maintain and that $1500 now will feel like 20% more in a few years. We are heading for a recession and there's no way to stop it. Bernanke is just throwing out attempts to delay it.

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Greenspan should have seen the growing bubble a long time before. JMHO.

At some point it was decided that economic downturns were no longer necessary as a part of long term growth/stability, and the entire economy can be manipulated at will thru printing money. While monetarist theory isn't all bad, if you're gonna play that game, you should pay attention to bubbles like that caused by your policy.

again, jmho.

So you are saying Greenspan should have hit the breaks? It like to see the ****storm of a thread ES would have had if Greenspan said "hey, i know everyone loves what the economy is doing right now and everyone has a few extra bucks in their pocket. But im going to throw a wrench in it. Ciao."

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I don't feel sorry for a lot of the people running the risk of foreclosure.

Buying a house is not a right. It's a privilege. It carries with it a great deal of responsibility.

There are a small percentage of people who are running the risk of foreclosure due to unforeseen circumstances, such as job lose. I'm sure the banks will work something out with them to save their house.

But to the knuckleheads that saw $100K or more of overnight equity when house prices sky-rocketed... I don't feel sorry for them for taking out 2nd mortgages on that money. They should've known better that the market can change suddenly.

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The bigger picture that no one seems to see is that this measure is mostly about insulating the rest of the economy from the lending crisis. So even if YOU arent the one being bailed out, it probably helps you.

Of course it is and OUR government better do what they can to prevent it. But it doesn't change the fact that this practice has put us into a recession. I for one am not satisfied by our economic leadership.

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So you are saying Greenspan should have hit the breaks? It like to see the ****storm of a thread ES would have had if Greenspan said "hey, i know everyone loves what the economy is doing right now and everyone has a few extra bucks in their pocket. But im going to throw a wrench in it. Ciao."

Not throw a wrench... but temper. Besides, it looks like most of the growth came thru inflation anwyays.

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Not throw a wrench... but temper. Besides, it looks like most of the growth came thru inflation anwyays.

You can spin the words however you like. Its still the same thing. How about meddle?

And remember, during a good part of the boom, rates were going DOWN to spur other parts of the economy.

Greenspan doenst have the tools at his disposal to magically make the economy move has he wants it and some parts of the economy move independantly of the other.

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I thought you were an economist. I for one, am not.

I am. Im not following what you are trying to say.

You said.

Of course it is and OUR government better do what they can to prevent it. But it doesn't change the fact that this practice has put us into a recession. I for one am not satisfied by our economic leadership.

Then i said:

What practice?

Then you said.

Credit-based.

"Credit-based" is not a practice. Im still trying to figure out what practice you believe is going to put us into a recession.

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