Bailout...
Moderator: Excalibur Marketing Dude
Bailout...
As I understand it our cost of bailing out Wall Street is $2300 per family in USA. I say let em fall on their butts... Enough!
Phoenix - Equinox
Don't trust anyone wearing a necktie...
DrDan
Don't trust anyone wearing a necktie...
DrDan
DrDan,
I have a lot of ideas the government wouldn't like to hear.
*Like bailing out homeowners with bad mortgages by giving them a government loan with little or no interest and small payments. And making any loan or credit card agreement state the interest rate and payment schedule in plain language, and locking the rate for the life of the loan or card.
(yep, I'm a victim, too. Had several credit cards jump interest from low to max when one company claimed I had paid late and gave me a bad credit report. I haven't used a credit card for several years now, and it will still be several more months before I have the last one paid off. But I finally have an agreement with the last one - 9 more payments and I'm clear!
)
*Like pulling most troops out of foreign countries and defending our own borders. (and telling countries like Iran and North Korea to go right ahead with their nuclear programs, but if they ever launch a missile we will launch 100 in return.)
*Like making it a charge of fraud if politicians promise to change something if elected knowing they can't possibly change it (and don't), or promising to TRY to change it, then doing nothing when in office. (and booting them out of office if convicted)
As for the bailout - I think it should be put on the ballot and let voters decide!
I have a lot of ideas the government wouldn't like to hear.
*Like bailing out homeowners with bad mortgages by giving them a government loan with little or no interest and small payments. And making any loan or credit card agreement state the interest rate and payment schedule in plain language, and locking the rate for the life of the loan or card.
(yep, I'm a victim, too. Had several credit cards jump interest from low to max when one company claimed I had paid late and gave me a bad credit report. I haven't used a credit card for several years now, and it will still be several more months before I have the last one paid off. But I finally have an agreement with the last one - 9 more payments and I'm clear!
)*Like pulling most troops out of foreign countries and defending our own borders. (and telling countries like Iran and North Korea to go right ahead with their nuclear programs, but if they ever launch a missile we will launch 100 in return.)
*Like making it a charge of fraud if politicians promise to change something if elected knowing they can't possibly change it (and don't), or promising to TRY to change it, then doing nothing when in office. (and booting them out of office if convicted)
As for the bailout - I think it should be put on the ballot and let voters decide!
wabi
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sumner4991
- Posts: 6989
- Joined: Thu Oct 19, 2006 12:16 pm
I don't mind the financial bailout as much as I dislike the giving of cash to "innocent" mortgage victims and putting "money in the hands of main street" folks. It sounds great in a speech Obama, but, give me a break. I'm sick and tired of GIVING AWAY $$$$$.
We need the financial bailout so there are funds available to lend qualified buyers money to purchase homes. Home buying is a big economic boost.
However, people are crooked. . .I just got this memo from a lender.
"SUBJECT: Converting Existing Homes to Rentals—Underwriting Instructions
Recently, FHA and others in the mortgage industry have observed an increasing number of homeowners who have chosen to vacate their existing principal residence and purchase a new residence. This has been occurring as some homeowners, given the rising price of fuel, are relocating to homes nearer their employment, or are taking advantage of other home buying opportunities arising in the marketplace.
Due to FHA’s concern that some homebuyers in these transactions may attempt to provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is instituting underwriting guidance designed to assure that the homebuyer can make payments on the full debt service of both mortgages. Consequently, beginning with case number assignments on or after September 19, 2008 and until further notice, the underwriting analysis may NOT consider any rental income from the property being vacated except under circumstances described in this Mortgagee Letter. The exclusion of rental income from property being vacated is being instituted on a temporary basis while FHA further analyzes this situation to determine whether permanent measures may need to be taken. This will assure that a homeowner either has sufficient income to make both mortgage payments without any rental income or has an equity position not likely to result in defaulting on the mortgage on the property being vacated. In either case, this guidance is directed to preventing the practice known as “buy and bail” where the homebuyer purchases, for example, a more affordable dwelling with the intention to cease making payments on the previous mortgage.
Exceptions:
Rental income on the property being vacated may be considered in the underwriting analysis under the following circumstances:
· Relocations: The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. A properly executed lease agreement (i.e., a lease signed by the homebuyer and the lessee) of at least one year’s duration after the loan is closed is required. FHA recommends that underwriters also obtain evidence of the security deposit and/or evidence the first month’s rent was paid to the homeowner.
· Sufficient Equity in Vacated Property: The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property. The appraisal, in addition to using forms Fannie Mae1004/Freddie Mac 70, may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055, and for condominium units, form Fannie Mae1075/Freddie Mac 466.
This guidance applies solely to a principal residence being vacated in favor of another principal residence. This is not applicable to existing rental properties disclosed on the loan application and confirmed by tax returns (Schedule E of form IRS 1040)."
There are people out there right now doing the "buy and bail" crap right now. It's probably the same folks that Obama wants to make sure they can keep their home. It's easy to blame the lenders, but, I can tell you right now . . .THOSE BUYERS KNEW THEY WERE GETTING AN ADJUSTABLE RATE MORTGAGE . . .and we all know , the rate CAN go up. How innocent is that?
Obama studdards around like an idiot unless he's saying a prepared speech. Unfortunately, looks like a lot of uneducated folks might even make it to the polls . . . unless we can keep this gas shortage going.
wabi . . .if we had that "promise law" you are talking about, I'd vote for Obama.
We need the financial bailout so there are funds available to lend qualified buyers money to purchase homes. Home buying is a big economic boost.
However, people are crooked. . .I just got this memo from a lender.
"SUBJECT: Converting Existing Homes to Rentals—Underwriting Instructions
Recently, FHA and others in the mortgage industry have observed an increasing number of homeowners who have chosen to vacate their existing principal residence and purchase a new residence. This has been occurring as some homeowners, given the rising price of fuel, are relocating to homes nearer their employment, or are taking advantage of other home buying opportunities arising in the marketplace.
Due to FHA’s concern that some homebuyers in these transactions may attempt to provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is instituting underwriting guidance designed to assure that the homebuyer can make payments on the full debt service of both mortgages. Consequently, beginning with case number assignments on or after September 19, 2008 and until further notice, the underwriting analysis may NOT consider any rental income from the property being vacated except under circumstances described in this Mortgagee Letter. The exclusion of rental income from property being vacated is being instituted on a temporary basis while FHA further analyzes this situation to determine whether permanent measures may need to be taken. This will assure that a homeowner either has sufficient income to make both mortgage payments without any rental income or has an equity position not likely to result in defaulting on the mortgage on the property being vacated. In either case, this guidance is directed to preventing the practice known as “buy and bail” where the homebuyer purchases, for example, a more affordable dwelling with the intention to cease making payments on the previous mortgage.
Exceptions:
Rental income on the property being vacated may be considered in the underwriting analysis under the following circumstances:
· Relocations: The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. A properly executed lease agreement (i.e., a lease signed by the homebuyer and the lessee) of at least one year’s duration after the loan is closed is required. FHA recommends that underwriters also obtain evidence of the security deposit and/or evidence the first month’s rent was paid to the homeowner.
· Sufficient Equity in Vacated Property: The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property. The appraisal, in addition to using forms Fannie Mae1004/Freddie Mac 70, may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055, and for condominium units, form Fannie Mae1075/Freddie Mac 466.
This guidance applies solely to a principal residence being vacated in favor of another principal residence. This is not applicable to existing rental properties disclosed on the loan application and confirmed by tax returns (Schedule E of form IRS 1040)."
There are people out there right now doing the "buy and bail" crap right now. It's probably the same folks that Obama wants to make sure they can keep their home. It's easy to blame the lenders, but, I can tell you right now . . .THOSE BUYERS KNEW THEY WERE GETTING AN ADJUSTABLE RATE MORTGAGE . . .and we all know , the rate CAN go up. How innocent is that?
Obama studdards around like an idiot unless he's saying a prepared speech. Unfortunately, looks like a lot of uneducated folks might even make it to the polls . . . unless we can keep this gas shortage going.
wabi . . .if we had that "promise law" you are talking about, I'd vote for Obama.
I'd rather wear out than rust out.
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
From what I understood in economics class last night in the last week congress has asked to raise the debt ceiling to 1.7 trillion dollars, they want to spend 700 million dollars to bail out the financial industry alone. This is kind of scary, where do you believe this money will come from? Straight out of thin air. Its almost a guarantee that not all this money will be spent wisely. There will be pockets that are getting lined.
Pulling money out of thin air like that cannot be good for the economy. It will have drastic impacts in the near future.
Pulling money out of thin air like that cannot be good for the economy. It will have drastic impacts in the near future.
Mike
Excalibur Exocet
Drop Zone Scope
Gold Tip Laser 2 Graphite Bolts
100 Wasp BroadHeads
Greatness is not in where we stand, but in what direction we are moving.
Excalibur Exocet
Drop Zone Scope
Gold Tip Laser 2 Graphite Bolts
100 Wasp BroadHeads
Greatness is not in where we stand, but in what direction we are moving.
-
Grizzly Adam
- Posts: 5701
- Joined: Fri Aug 04, 2006 8:36 pm
- Location: Decatur County, Indiana
Wabi:
I also believe in maintaining a super-strong national defense and a zero-tolerance policy against aggression from foreign powers. I believe that attitude should extend to the aided defense of Canada, Mexico, and South America.
I agree that we need to drastically reduce our "international policing" engagements, too.
I also agree with plain-langage full-disclosure credit card agreements.
And, I think holding politicians to the fire is a wonderful idea, though I don't know how such a thing would best be implemented.
Sounds like we're on the same page ... at least on those ideas!
Maybe we should run for office in 2012. What position do you want?
Would that be:
Wabi / Grizz 2012
or
Grizz / Wabi 2012
I also believe in maintaining a super-strong national defense and a zero-tolerance policy against aggression from foreign powers. I believe that attitude should extend to the aided defense of Canada, Mexico, and South America.
I agree that we need to drastically reduce our "international policing" engagements, too.
I also agree with plain-langage full-disclosure credit card agreements.
And, I think holding politicians to the fire is a wonderful idea, though I don't know how such a thing would best be implemented.
Sounds like we're on the same page ... at least on those ideas!
Maybe we should run for office in 2012. What position do you want?
Would that be:
Wabi / Grizz 2012
or
Grizz / Wabi 2012
Grizz
Grizz
You forget it is all supposed to end in 2012. Heck you and Wabi may not have any people to guide!
I'm sorry Sumner I just can't see bailing out any more financial institutions. They did it to themselves. Any money we dump into them will get stolen and we will just end up more in debt.
You forget it is all supposed to end in 2012. Heck you and Wabi may not have any people to guide!
I'm sorry Sumner I just can't see bailing out any more financial institutions. They did it to themselves. Any money we dump into them will get stolen and we will just end up more in debt.
Phoenix - Equinox
Don't trust anyone wearing a necktie...
DrDan
Don't trust anyone wearing a necktie...
DrDan
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sumner4991
- Posts: 6989
- Joined: Thu Oct 19, 2006 12:16 pm
DrDan . . .I agree, I don't like it either. Unfortunately, our system is based on credit. Without available credit, you may as well turn off the lights. Most your average Joes couldn't buy a car, appliances, homes, boats, or even clothes without credit. You think your business is bad now.
The USA would be in a economic melt down without a bailout of some sort. We could hope that China would invest the $$. Maybe Warren Buffett will add some more $$.
The USA would be in a economic melt down without a bailout of some sort. We could hope that China would invest the $$. Maybe Warren Buffett will add some more $$.
I'd rather wear out than rust out.
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
Sumner
Well my house is paid for and the freezer is full so I will survive whatever happens. Maybe tight credit might be a good thing. Whatever happened to saving for what you want to buy. We used to do that you know...
Incidentally, did you see latest polls? Obama 52% McCain 43 Never been a spread like that. Wanna put a little wager on the election outcome?
Well my house is paid for and the freezer is full so I will survive whatever happens. Maybe tight credit might be a good thing. Whatever happened to saving for what you want to buy. We used to do that you know...
Incidentally, did you see latest polls? Obama 52% McCain 43 Never been a spread like that. Wanna put a little wager on the election outcome?
Phoenix - Equinox
Don't trust anyone wearing a necktie...
DrDan
Don't trust anyone wearing a necktie...
DrDan
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sumner4991
- Posts: 6989
- Joined: Thu Oct 19, 2006 12:16 pm
I rarely discuss politics, much less bet on it. Besides, there are too many uneducated fools voting this year, he has a good chance. Can you believe the same people that remain in New Orleans are allowed to vote?
What about your man Biden?
Biden . . .sometimes he is a real professor . . .his last speech . .
"Mark my words: If, God forbid, there is another major attack on America, it will not come from Iraq," Biden said. "It will almost certainly come from the Afghanistan-Pakistan border"
Biden . . .why don't you just go out on a limb there? The next attack will not come from Iraq . . .how much time did you spend on the toilet to figure that one out???
By the way . . .I agree with you on the credit thing . . .I have NONE.
What about your man Biden?
Biden . . .sometimes he is a real professor . . .his last speech . .
"Mark my words: If, God forbid, there is another major attack on America, it will not come from Iraq," Biden said. "It will almost certainly come from the Afghanistan-Pakistan border"
Biden . . .why don't you just go out on a limb there?
The next attack will not come from Iraq . . .how much time did you spend on the toilet to figure that one out??? By the way . . .I agree with you on the credit thing . . .I have NONE.
I'd rather wear out than rust out.
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
-
Grizzly Adam
- Posts: 5701
- Joined: Fri Aug 04, 2006 8:36 pm
- Location: Decatur County, Indiana
My bad. -
Mountain Man
- Posts: 87
- Joined: Mon Sep 11, 2006 3:19 pm
- Location: Ottawa, Ontario
Grizz,
We don't have a chance.
Common sense just isn't popular in politics these days.
I'll agree that tighter credit would be good. At some point we are going to have to get back to basics (like an honest day's work for an honest day's pay). If you want to buy something and don't have the cash it just might be good to learn to work harder and save for what you want! If you have the ability, but are just too lazy to work - do without!
To me equal opportunity doesn't mean because my neighbor has a new car I should be entitled to one, it means I should have the same opportunity to buy one if I want to earn the cash!
Another thing I like the sound of is a sales tax to replace income and property taxes. It would be applied equally to ALL. If you buy anything you should pay the tax, and if you save all your $$$$$ your kids will spend it when you are gone!
We don't have a chance.
Common sense just isn't popular in politics these days.
I'll agree that tighter credit would be good. At some point we are going to have to get back to basics (like an honest day's work for an honest day's pay). If you want to buy something and don't have the cash it just might be good to learn to work harder and save for what you want! If you have the ability, but are just too lazy to work - do without!
To me equal opportunity doesn't mean because my neighbor has a new car I should be entitled to one, it means I should have the same opportunity to buy one if I want to earn the cash!
Another thing I like the sound of is a sales tax to replace income and property taxes. It would be applied equally to ALL. If you buy anything you should pay the tax, and if you save all your $$$$$ your kids will spend it when you are gone!
wabi
Wabi I agree with you... I drive an '88 Ford Van that was paid for years ago. Yes it is cancer laden and doesn't match the neighbors SUV but it's paid for. And then I have my "new" truck a '94 Ford F-350 with only 90,000 miles on it. Gheesh I feel like a dropout when I park at Walmart. Oh well, I really don't give a rats arse cuz they get me around and haven't made a payment for years. My house though not lavish is also paid for... No credit card debt either... I must be weird! Yah I am weird according to Sumner. Oh well I work a little every day and get a nap for lunch and make enough to not have to borrow so I feel happy. I actually looked at a new car - it was $46,000 LOL I only paid $39,500 for my house with 3 acres of land. I think we as a nation need to tighten up and drive and live in what we can afford and toss them credit cards.
Phoenix - Equinox
Don't trust anyone wearing a necktie...
DrDan
Don't trust anyone wearing a necktie...
DrDan
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sumner4991
- Posts: 6989
- Joined: Thu Oct 19, 2006 12:16 pm
DrDan . . .I don't recall calling you wierd because you are debt free, I think it was because you like Obama.
You are not the average Joe on the debt issue. Most households have some debt. Some households have a lot of debt. We are a nation of "want it now" folks. I'm with you, my car has 112,000 miles on it and I have no plans of trading. No debt here either . . .we are in the same wierd debt boat.
Shutting down the financial market would kill most industries.
You are not the average Joe on the debt issue. Most households have some debt. Some households have a lot of debt. We are a nation of "want it now" folks. I'm with you, my car has 112,000 miles on it and I have no plans of trading. No debt here either . . .we are in the same wierd debt boat.
Shutting down the financial market would kill most industries.
I'd rather wear out than rust out.
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
Perception trumps intention.
2006 Exomax w/Agingcrossbower Custom Stock
20" Easton Powerbolts w/125gr Trophy Ridge Stricknines & 2"Blazers
Boo Custom Strings
2006 Vixen
I have serious heartburn with bailing out any industry that cooks the books. But, it was our Congressional leaders that have created this mess. It is only a matter of time, but eventually many Washington insiders and possibly a Congressman or two will end up in prison. Though both parties are to blame in my opinion, the root of the problem began in Democratic hands. Don't take my word for it.
Educate yourselves.
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
http://article.nationalreview.com/?q=ND ... WU4NDg1Y2Q
I agree that credit is a HUGE problem in our country. Giving loans to people that have no means to pay them back is how we got to where we are today. The American Dream SHOULD be a dream to those who cannot afford it. Now we can all pay the price so everyone can enjoy. The only thing worse than a credit card is a politician.
DuckHunt
Educate yourselves.
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
http://article.nationalreview.com/?q=ND ... WU4NDg1Y2Q
I agree that credit is a HUGE problem in our country. Giving loans to people that have no means to pay them back is how we got to where we are today. The American Dream SHOULD be a dream to those who cannot afford it. Now we can all pay the price so everyone can enjoy. The only thing worse than a credit card is a politician.
DuckHunt