Rescue of mortgage giants could hit $25 billion

WASHINGTON: A federal rescue of Fannie Mae and Freddie Mac could cost taxpayers $25 billion, congressional budget experts said Tuesday, as lawmakers put finishing touches on legislation that would tap the ...

[Don9of11]

This doesn't make sense to me. If you can't pay the mortgage, how are you able to afford to pay the taxes? I don't think this is a good idea. I believe mortgage lenders have gotten themselves into this mess through qualifying people for home loans they can't afford and as such is bad business practice. I don't think we should be bailing them out.

I know many people are out of work and can't afford their mortgages but maybe they took on more than they could handle to start with, of course the mortgage lender said they could afford it. My original asserstion still stands.

[Idiots Delight]

By the time it
s over, it will cost a lot more. Congress is trying to put this bailout through on a piecemeal basis because no one would tolerate it otherwise. Those companies are backing soeting like $5 trillion dollars in loans. Are we suppoed to believe only $25 billion are in trouble.

[dspell29]

the percentage of loans in default in very small (3%) that means 97% of 5 TRILLION is paying!!!!!

[Idiots Delight]

dspell29 wrote:

the percentage of loans in default in very small (3%) that means 97% of 5 TRILLION is paying!!!!!

Do you know what 3% of $5,000,000,000,000 is?

$150 billion.

[Betamax]

Well, that's good news. So when is the feds goin' to bail Akron out of it's $1 billion debt.

Certainly, Akron's in line for that. Ever-buddy knows Akron's city hall hero used to be the Grand Poohbah of the League of Mayors.

I have a big problem with the government bailin' out publically held companies like this.

I also see the demoncritters want to sneak in a raise of the National Debt. At least that would help Obama pay for all of those feelgood programs he proposed, should he get elected.

[a voice]

Fools and money!

[wheres mine]

my small business is having trouble due to the crappy economy, is the government going to bail me out too? This is bullsh!t.

I don't feel sorry for these banks and financial organizations one bit. They've overcharged customers for years, raped us on interest, and then when they made poor lending decisions suddenly it's the government's job to bail them out? They knew they were making risky decisions.

Let them and the economy tank, i don't want my tax dollars used to bail some mega corporation out.

[whereisthelove]

I wish somebody would come and bail me out of my debt!

[A-Patriot]

There was a time when you went to a bank for a loan and they actually used a calculator to figure out if you could afford what you wanted. If you couldn't, they didn't grant the loan. Now it appears to be a race to see who can loan the most money, then reclaim the property and resell it. Flawed thinking and bad business. Every CEO of those institutions should go to prison. We are going to have to foot their idiotic thinking.

[hurting in Akron]

wheres mine wrote:

my small business is having trouble due to the crappy economy, is the government going to bail me out too? This is bullsh!t.
I don't feel sorry for these banks and financial organizations one bit. They've overcharged customers for years, raped us on interest, and then when they made poor lending decisions suddenly it's the government's job to bail them out? They knew they were making risky decisions.
Let them and the economy tank, i don't want my tax dollars used to bail some mega corporation out.

I agree-send some money my way. My small business is having problems in this economy also. Bail my business out.
I would rather my tax money help the middle class business owner not the mega corporation.

[steve]

Don9of11 wrote:

This doesn't make sense to me. If you can't pay the mortgage, how are you able to afford to pay the taxes? I don't think this is a good idea. I believe mortgage lenders have gotten themselves into this mess through qualifying people for home loans they can't afford and as such is bad business practice. I don't think we should be bailing them out.
I know many people are out of work and can't afford their mortgages but maybe they took on more than they could handle to start with, of course the mortgage lender said they could afford it. My original asserstion still stands.

You got to remember things are not the same as they were 5 or 10 years ago. There are alot of people that have been working for some companies for the last 5 or 10 years and making good money that could afford the house they are in. Next thing you know the company starts reduceing it's work force or just goes belly up. These people didn't know that when they got the job. Take for example AES in Akron, it's owned by Exxon Mobil. Within the last year they closed down their Wadsworth factory and just laid of over 30 people in Akron. Not only that but they keep letting people go or moving them. Within a year or two they will be out of Akron. You know what's a shame is that is Exxon Mobil. But that's not the only company in the area that is doing that or has done that. Look at Hoover, look at Timken and Progessive they laid off most of their IT just to outsource it to India. Look at Ford and all the other companies around, in 5 years how many will still be here?
You can't blame people for wanting a nice house, most didn't buy the house til after they got a job they thought was stable and was going to last. If the Government wants to bail out someone they need to look at the people and stop catering to these companies and other countries.

[holdyourhorses]

The government isn't bailing out people who bought homes within their price range, based on their income and assets to debt who could afford to pay the mortgage at the time, they're bailing out the relatively small number of folks who were given mortgage loans from, relatively small banks and mortgage companies who couldn't afford the mortgage in the first place, were carrying too much debt going in and should have been considered a bad risk and told they had to choose a less expensive home or put more money down.

These folks signed up for these mortgages agreeing to the ridiculous terms in the "fine print". They couldn't afford to buy these homes in the first place. Many bought very expensive homes out of their price range, that they couldn't have bought under any other circumstance. Then they went out and financed furniture on top off that. They didn't have enough money in reserve for emergencies, such as losing a job. Many bought these large homes with both husband and wife working, one loses their job and they couldn't afford it. It's said that many of these folks "didn't understand" what they were signing up for and that many of the "preditory" loan companies took advantage of them.

Sorry, I call all that irresponsible not only on the part of the banks and mortgage companies but on the part of the home buyers who were living beyond their means without a safety net. I keep at least 6 months of reserve cash "just in case". I have a very big problem with my tax dollars bailing these people out so they can keep their home that they couldn't afford in the first place. I know plenty of folks over the years who have lost their home for one reason or another, job loss, major illness and no one stepped in to help them. They lost their home and they had to start over.

This sounds too much like "socialism" to me. Obama's grandiose plans sound too much like socialism to me.

[american patriot]

i don't feel that our tax dollars need to be spent helping the banks due to bad decisions. my taxes will go up and will the banks help my problems, h*** no. let them suffer like any other buisness that make poor decisions. it's always the ones with the money that take from those with little to save their rich a****.and for those living outside their means, i hope you learn your lesson , money don't grow on trees.

[Thinking out Loud 2]

A twisted thought. Why not just wipe out all debt owed by any person, company and the government by legislation. Everyone starts over with no debt?

OOPS...forgot the meds today...sry

[Don9of11]

steve wrote:

<quoted text>
You can't blame people for wanting a nice house, most didn't buy the house til after they got a job they thought was stable and was going to last. If the Government wants to bail out someone they need to look at the people and stop catering to these companies and other countries.

I am not blaming people for wanting a nice house. I have a nice house, but I didn't buy a home I couldn't afford even though the mortgage lender said I could afford it. People live beyond their means and when hard times come they don't know how to deal with. It's really sad.

I hold the mortgage industry mostly accountable in this instance but some people don't use the brains God gave them.

[steve]

Don9of11 wrote:

<quoted text>
I am not blaming people for wanting a nice house. I have a nice house, but I didn't buy a home I couldn't afford even though the mortgage lender said I could afford it. People live beyond their means and when hard times come they don't know how to deal with. It's really sad.
I hold the mortgage industry mostly accountable in this instance but some people don't use the brains God gave them.

but that's just it, when people bought these houses they could afford them and they were not living beyond their means. But as fate has it and since companies were looking to themselves instead of their employees, and started outsources Now if your in a job 5, 10 even 15 years your pretty comfortable right? You figure you may retire from that place, you look at a house that is well within your budget so you buy it. Well since most people can't afford to pay all of the cost at once they have to get a loan. The payments are in your budget. Well your company decides they are going to let your department go because they can get cheaper labor in India. Because everything is going up, gas, food everything. So they give you notice and let you go in 30 days. Well you don't have that income anymore, and the job that you do are few and far.
So tell me how is it the person's fault? They bought a house at the time that was within their budget. You have no idea if your company will still be around tomorrow, no one does. Sure you may have a nice little saving, but it goes fast when you don't have an income coming in. Some people say but there are jobs out there. So would it be right if you were making 50,000 a year to go to a job paying 20,000 ? No you want to at least find a job where you can pay your bills and still put some food on the table.

Yes I'll admit there are people out there that got house that were bigger then their income, but there are a lot out there that were making more then enough. I agree I don't thin my taxes should bail these companies out, heck I don't think there are a lot of places that my tax dollar shouldn't be used for. But I do believe the government needs to step in with these companies that are outsourcing outside of the States. We need to keep the jobs in the USA not everywhere else.