01-18-2009, 06:42 AM
I think Pam's response was excellent, thorough and 100% correct. I would like to add that for those who hold their properties mortgage-free (means that they worked for the money and paid for what they bought), these "relief" plans are completely unjust. So if I bought something with a mortgage, I am entitled to a discount? I'm not complaining that banks are making principal or interest adjustments, but some of the attitudes expressed here are that the banks, taxpayers, and society as a whole OWE it to them? hmm ... socialism anyone?
To me, for the past 4-5 years, when looking at home values compared to wages, in addition to the hyper-development of condos and spec homes, it was apparent that some adjustment was coming.
I don't expect that anyone posting here is a subprime borrower, but if we are spreading blame around, we must also look at what effect subprime mortgages had on the market. They drove prices up from the bottom. This affected every level of the market. So, what fueled the subprime mess? It wasn't only greedy banks. Congress had a role in this too -- there were congressional hearings in 2003 regarding this practice, in reference to Freddy Mac and Fannie Mae, and Barney Frank defended this practice, in order to kowtow to his 'handout' constituents.
FROM US NEWS & WORLD REPORT (9/10/08):
So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?
"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
END OF INSERT
So as long as we are spreading blame, let's include Congressman Barney Frank for pushing banks to give loans to people who should NEVER own a house, in opposition to Bush's Treasury Secretary Tony Snow's proposal for Treasury oversight of these lending practices and significant regulatory overhaul of the housing finance industry.
Government is NOT the answer to this market problem. Government involvement in the market helped to cause this problem and continues to be part of the problem.
I know almost everyone has suffered personal hardships in the past few months, but sometimes the right solution is not the easiest one.
Best wishes to all who are struggling.
To me, for the past 4-5 years, when looking at home values compared to wages, in addition to the hyper-development of condos and spec homes, it was apparent that some adjustment was coming.
I don't expect that anyone posting here is a subprime borrower, but if we are spreading blame around, we must also look at what effect subprime mortgages had on the market. They drove prices up from the bottom. This affected every level of the market. So, what fueled the subprime mess? It wasn't only greedy banks. Congress had a role in this too -- there were congressional hearings in 2003 regarding this practice, in reference to Freddy Mac and Fannie Mae, and Barney Frank defended this practice, in order to kowtow to his 'handout' constituents.
FROM US NEWS & WORLD REPORT (9/10/08):
So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?
"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
END OF INSERT
So as long as we are spreading blame, let's include Congressman Barney Frank for pushing banks to give loans to people who should NEVER own a house, in opposition to Bush's Treasury Secretary Tony Snow's proposal for Treasury oversight of these lending practices and significant regulatory overhaul of the housing finance industry.
Government is NOT the answer to this market problem. Government involvement in the market helped to cause this problem and continues to be part of the problem.
I know almost everyone has suffered personal hardships in the past few months, but sometimes the right solution is not the easiest one.
Best wishes to all who are struggling.