Housing bailout

Lateralus · 07-25-2008, 11:18 PM

Do you support it?

heart · 07-25-2008, 11:21 PM

I just hope they don't crush the economy.

pure_mercury · 07-26-2008, 12:16 AM

Losing money is the market's way of telling you "Don't do that anymore!" Bailing lenders and borrowers out will encourage more poor business practices later. Plus, I resent that my tax money will go to fund this.

Lateralus · 07-26-2008, 12:52 AM

The bill will help ~400,000 people to avoid foreclosure on their sub-prime mortgages by refinancing them into fixed-rate government backed loans. Also, $4 billion will be set aside to allow communities to buy foreclosed properties.

Haight · 07-26-2008, 01:30 AM

Quote:

Originally Posted by pure_mercury

Losing money is the market's way of telling you "Don't do that anymore!" Bailing lenders and borrowers out will encourage more poor business practices later. Plus, I resent that my tax money will go to fund this.

So there are no victims in this situation?

And by the way, the "market" is not some disconnected entity. It is, however, people buying, selling, and trying to survive.

Zergling · 07-26-2008, 01:54 AM

I don't know too many specifics to really be able to say for sure. My first instinct is to say no (My view of bailouts in general), but I don't know enough to guess well what negative effects that may have.

Wolf · 07-26-2008, 01:55 AM

Quote:

Originally Posted by Haight

So there are no victims in this situation?

Nope, basically no victims (except the stupid, and theoretically dealing with stupid people is not a crime), unless you consider criminals victims.

However, I would totally support legislation that punished loan originators for bad loans they originated (including them shouldering a portion of the defaulted loan value) and some method of punishing bad appraisers, since both were working together to defraud people.

Haight · 07-26-2008, 02:00 AM

Quote:

Originally Posted by Wolf

Nope, basically no victims (except the stupid, and theoretically dealing with stupid people is not a crime), unless you consider criminals victims.

I don't understand the part in the parentheses. Can you explain that a bit?

Quote:

Originally Posted by Wolf

However, I would totally support legislation that punished loan originators for bad loans they originated (including them shouldering a portion of the defaulted loan value) and some method of punishing bad appraisers, since both were working together to defraud people.

Hmm. . . so there are no victims, yet you state that people should be punished for "defrauding people."

I'm confused. Aren't the defrauded people victims?

Wolf · 07-26-2008, 02:15 AM

Quote:

Originally Posted by Haight

I don't understand the part in the parentheses. Can you explain that a bit?

People that takes loans they can't afford, and/or not understanding what was going on. They are stupid. Being stupid is not illegal and exploiting them is not illegal, at least not yet.

Quote:

Hmm. . . so there are no victims, yet you state that people should be punished for "defrauding people."

I'm confused. Aren't the defrauded people victims?

A bailout is a reward to those committing fraud and those that made high-risk investments. If you had a kid and they did something you consider wrong, do you give them candy and say "good job"? We can't guarantee every investment will always make money, either.

No, our money should not go to them.

heart · 07-26-2008, 02:40 AM

But what if bailing them out saves the whole economy from taking a nose dive?

View Poll Results: Do you support the housing bailout legislation?
Yes	6	25.00%
No	15	62.50%
Other (explain)	3	12.50%
Voters: 24. You may not vote on this poll

07-25-2008, 11:18 PM	#1 (permalink)
Lateralus Crazy Bean Join Date: May 2007 Type: ENTJ Posts: 2,795	Housing bailout Do you support it? __________________ It's all about me.

07-25-2008, 11:21 PM	#2 (permalink)
heart heart on fire Join Date: May 2007 Type: INFP Posts: 7,350	I just hope they don't crush the economy. __________________ 5w4 sx/sp People understand me so poorly that they don't even understand my complaint about them not understanding me. Soren Kierkegaard

07-26-2008, 12:16 AM	#3 (permalink)
pure_mercury Order Now! Join Date: Feb 2008 Type: ESFJ Location: Hollywood Posts: 4,598	Losing money is the market's way of telling you "Don't do that anymore!" Bailing lenders and borrowers out will encourage more poor business practices later. Plus, I resent that my tax money will go to fund this. __________________ Who wants to try a bottle of merc's "Extroversion Olive Oil?"

07-26-2008, 12:52 AM	#4 (permalink)
Lateralus Crazy Bean Join Date: May 2007 Type: ENTJ Posts: 2,795	The bill will help ~400,000 people to avoid foreclosure on their sub-prime mortgages by refinancing them into fixed-rate government backed loans. Also, $4 billion will be set aside to allow communities to buy foreclosed properties. __________________ It's all about me.

07-26-2008, 01:54 AM	#6 (permalink)
Zergling Banned Join Date: Apr 2007 Type: INTx Location: Champaign, Ill Posts: 1,378	I don't know too many specifics to really be able to say for sure. My first instinct is to say no (My view of bailouts in general), but I don't know enough to guess well what negative effects that may have.

07-26-2008, 02:40 AM	#10 (permalink)
heart heart on fire Join Date: May 2007 Type: INFP Posts: 7,350	But what if bailing them out saves the whole economy from taking a nose dive? __________________ 5w4 sx/sp People understand me so poorly that they don't even understand my complaint about them not understanding me. Soren Kierkegaard

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