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Originally Posted by 4RE KLR
That is exactly my point.
Why do the large companies get bailed out and the little tax payers are left in bankruptcy.
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I suspect that you know why - jobs! A lot of little people are hurt when a big company goes down - thousands normally.
I really, really hope that the FED does not lower the FF rate later this month - the RE market needs to work this out. Keep in mind that 30-35% of the homeowners in trouble in the metro areas or areas close to metro areas are house flippers that were unable to flip. Also, a huge percentage were not truthful on their application and another huge percentage simply stupid. Huge money was made by Countrywide and others - let them pay the price of those gains, not taxpayers. Besides, this mess has promise of bringing down housing costs so people can afford to buy houses. That really, really needs to happen - developers have ripped buyers, now the chickens have come home to roast and they are huge mad chickens!
Also - think about what is happened - the 'holder' of mortgages wants to increase the rate, based on the contract - so it's the 'holder' of the mortgage that is causing the problem for the home owner. In theory, the 'holder' can grant an interest rate break, but the 'holder' appears to not want to do that, they want the government to step in to assist the homeowner to make the higher payment. Well, screw them - keeping to mind that they originally purchased the mortgage with the higher rates as an incentive down the road. We are now down that road. A bailout will bailout the mortgage holder - greedy bastards with few exceptions. On the other hand, home owners did sign up for the deal and a deal is a deal. So, both the home owner and the mortgage holder deserve to lose.