TAXBILLY Posted September 27, 2007 Report Share Posted September 27, 2007 http://www.bloomberg.com/apps/news?pid=206...id=acVYSgDqEst8 taxbilly Quote Link to comment Share on other sites More sharing options...
joanmcq Posted September 27, 2007 Report Share Posted September 27, 2007 I really seethe at bailing out financial nimwits that bought more home than they could afford. If the debt is higher than the FMV of the home, keeping them from refi-ing it to a fixed rate loan, then it is likely they are insolvent and would not be taxed on the cancellation of debt anyways. If they have assets they could sell and are solvent, then they are placing the value of keeping their toys, cars, etc over keeping their homes and I have no sympathy. I read an article yesterday about one homeowner in trouble and he said he was giving up restaurant meals, and entertainment, and maybe even parochial school for his kids. Well, duh, in my opinion. Quote Link to comment Share on other sites More sharing options...
jainen Posted September 27, 2007 Report Share Posted September 27, 2007 >>I read an article yesterday ... << There is a polished propaganda machine moving to blame the world's financial problems on American homeowners. DON'T you believe it! Yes, many people made foolish, even greedy choices. But at least they covered their poor decisions with real, bricks-on-the-ground equity. It was the bankers and financiers that took those dreams and cynically "securitized" them, not once but down multiple levels. Often the new assets consisted of nothing more than the "income stream" with no equity whatsoever. Sometimes even the income streams were leveraged! They sold them to everyone's pension funds while absolutely LYING about the quality of these derivatives. So, yeah, we're going to read a bunch of these anecdotes while Congress diddles around about whether to tax us on the LOSS of home values. But did you notice last month that our central bank has ALREADY bailed out the bankers and financiers with a fifth of a TRILLION dollars? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted September 27, 2007 Report Share Posted September 27, 2007 With the interest rate cut? I will admit I was in Germany for most of the month and was blissfully ignorant of news for much of the time since I don't read German well, and had limited access to the internet and only picked up two english language papers. And they were british..... I will agree the bankers and brokers who used lax lending standards get us in this mess. The nimwits that bought more than they could afford could not have done so if reasonable standards had been used in lending them the money. Greed all around. Quote Link to comment Share on other sites More sharing options...
jainen Posted September 27, 2007 Report Share Posted September 27, 2007 >>With the interest rate cut?<< No. With CASH on the barrelhead. YOUR cash. >>I will admit I was in Germany<< Well, guess what? The Europeans kicked in even more than the Americans! Quote Link to comment Share on other sites More sharing options...
joanmcq Posted September 27, 2007 Report Share Posted September 27, 2007 How did they bail out the bankers with cash? Ok, I've also got a few weeks worth of newsweek to catch up on. I did notice the interest rates paid on CDs crashed in the three weeks I was gone. And gas prices went up about 50 cents.... God it was blissfull being ignorant if only for a little while... Quote Link to comment Share on other sites More sharing options...
jainen Posted September 27, 2007 Report Share Posted September 27, 2007 >>How did they bail out the bankers with cash?<< Well, they didn't call it cash, of course. Let's see -- what was that word? Oh yes: "liquidity." The way they did it was real subtle. The Fed just said, okay, here's the money you need. Now, you might wonder where exactly the money came from. But if you did, you would apparently be the only person in the whole world who asked that particular question. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted September 28, 2007 Report Share Posted September 28, 2007 Why from Santa Claus of course! Quote Link to comment Share on other sites More sharing options...
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