Bush administration opposes housing 'bailout' plan

CNN.com · 04-26-2008, 05:48 AM

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forester814 · 04-26-2008, 12:55 PM

Before people make up their minds about the housing "bailout" plan, please take a look at the article here. It addresses a lot of concerns/worries I have heard here.

They are talking about a potential downside of just $6 billion (about a week and a half of the Iraq spending), and a great potential upside, both economically and socially.

Bush administration opposes Democrats' mortgage relief bill - CNN.com

Quote:

The bill would not authorize the government to loan taxpayers' money directly to homeowners. Instead, it would authorize the Federal Housing Administration to guarantee up to $300 billion in new mortgages offered by government-approved private lenders. The new mortgages could at most equal 90 percent of a home's current value.

For a homeowner to get a new FHA-backed loan, the holder of the current mortgage would have to accept a loss and take a payment totaling no more than 85 percent of the home's value.

The government would also get a share of profits if the homeowner sold the house in the future and would have to pay the lenders only if homeowners defaulted on FHA-backed mortgages. The Financial Services committee estimates that 1 to 2 percent of the new loans would default, costing the government between $3 billion and $6 billion.

fxashun · 04-26-2008, 12:59 PM

Bone that. The only way I'd accept that if if the government sent me another check for a couple grand for being smart enough not to stick my own penis in my ass by buying a half million dollar house on a interest only, adjustable rate loan. Why should I care about giving even more "assistance" to more stupid people than we already do.

forester814 · 04-26-2008, 01:01 PM

In this case, you should care because the housing crash is threatening to take down the WHOLE economy. It's already spun us into a recession.

And that affects everyone, not just the "stupid" people this program would help.

fxashun · 04-26-2008, 01:06 PM

Quote:

Originally Posted by forester814

In this case, you should care because the housing crash is threatening to take down the WHOLE economy. It's already spun us into a recession.

And that affects everyone, not just the "stupid" people this program would help.

The housing problem ain't that bad. Gas prices is a much bigger problem effecting WAAAY more people in WAAY more ways. EVERYTHING runs on petroleum. Can't fly, drive, sail anything without it. The costs of everything is skyrocketing. A few people losing their houses is a small problem in comparison.
A very small percentage of homes is in danger of foreclosure. And most of those are concentrated in certain areas.
Foreclosure 'crisis' is overblown - MSN Money