Bush's Mortgage Medicine

[Decker]

The Bush Administration's plan to rescue the housing market and keep the economy from slipping into recession took flak yesterday for freezing interest rate hikes for a mere fraction of subprime, adjustable-rate borrowers. But there's a bigger risk: It could deepen and lengthen the credit crisis.

http://www.forbes.com/home/wallstreet/2007/12/06/bush-mortgage-subprime-biz-wall-cx_lm_1207subprime.html

So much for letting the free market run its course. 

I get the feeling that people are being slapped in the face, economically speaking, for buying/building homes they cannot afford.  That being said, I hope this measure does alleviate some of the problems.

[240 is Back]

once it down finally bottom out, corporations will come in and buy up blocks of property for dimes on the dollars.

Chinese corporations, mind you.

[youandme]

Chinese corporations, mind you.

   they already have been, and it has not even hit bottom yet

[Hedgehog]

Great. Just fcuking great.

I hope all those who were applauding the tax cuts a few years back are happy now.

It's payback time.

Hopefully, the next president won't have to spend the whole time paying off on the gigantic national debt.

[youandme]

those tax cuts were not really Bush's idea though you know, the CEA council of economic advisors were the ones who choose to go that route, and go the keynesianism theory.

In fact if economic and government worked faster togehter (red tape mumbo jumbo) then it would have worked

[Decker]

those tax cuts were not really Bush's idea though you know, the CEA council of economic advisors were the ones who choose to go that route, and go the keynesianism theory.

In fact if economic and government worked faster togehter (red tape mumbo jumbo) then it would have worked

The Bush tax cut went to the rich disproportianately.  They either subject that money to risk by creating or expanding business or they sock it away in deferred investments.  I think you know which side the Bush tax cuts really came down on.

And with the ongoing loss of tax income to our government (there were no spending cuts), the resulting debt really puts paid the idea that the tax cuts made sense in any economic manner.

[youandme]

I think you know which side the Bush tax cuts really came down on.

yea yea of course, but by doing that it "in theory" would have helped the economy, and it would have, while at the same time hurting people.

[Straw Man]

  they already have been, and it has not even hit bottom yet

yep - sovereign weatlh funds have been around for awhile.  It sucks that foreign countries holdings billions/trillions in US $'s are now able to buy up assets they've been doing it for awhile.  The collapse of the dollar just makes it that much more viable.

http://www.economist.com/printedition/displayStory.cfm?story_id=9230598&fsrc=RSS

[Straw Man]

bush tried to stimulate the economy with tax cuts for the rich hoping for a trickle down effect. didn't work....the rich spend money when they choose not because another check comes in the mail.

when the above failed, lending rates were taken down to historic lows, which inturn increased borrowing and spending by the "middle class" thus stimulating the US economy. one problem, that type of stimulus only lasts a short time due to it's inflationary upside and bubble potential. bush was hoping the housing crash came AFTER he exited the white house.

george w bush = Worst President in US History

I don't have quite as much confidence as you in the good intentions of Bush.   Personally, I don't think he gives a rat's ass about the middle or lower class (i.e 98% of the population of this country).  I believe the neo-con plan is to actually destroy the infrastructure of government by starving it (i.e drowning it in a bathtub) and then he (or his successor - these people think in terms of generations) can point to the failure of the government with "privatization" as the solution.

just my own personal CT

[Decker]

I don't have quite as much confidence as you in the good intentions of Bush.   Personally, I don't think he gives a rat's ass about the middle or lower class (i.e 98% of the population of this country).  I believe the neo-con plan is to actually destroy the infrastructure of government by starving it (i.e drowning it in a bathtub) and then he (or his successor - these people think in terms of generations) can point to the failure of the government with "privatization" as the solution.

just my own personal CT

All that goes hand in glove with the history of these privatizers like the Bush family--they get rich at the Gov. trough--lucrative gov. contracts with little or no risk, loan forgiveness, free Gov. sponsored R&D and infrastructure...

[Decker]

bush tried to stimulate the economy with tax cuts for the rich hoping for a trickle down effect. didn't work....the rich spend money when they choose not because another check comes in the mail.

when the above failed, lending rates were taken down to historic lows, which inturn increased borrowing and spending by the "middle class" thus stimulating the US economy. one problem, that type of stimulus only lasts a short time due to it's inflationary upside and bubble potential. bush was hoping the housing crash came AFTER he exited the white house.

george w bush = Worst President in US History

That's a good concise explanation.

Trickle down, supply side....there's never been historical proof of these things working.  Before anyone points out the Reagan legacy, let's remember that Reagan raised taxes 7 times in his 8 years.

Why can't we try "trickle up" tax cuts for once.

[Eyeball Chambers]

Did you know some people still support George W Bush?

[Decker]

Did you know some people still support George W Bush?

That, I did not know.

This, I cannot believe:

Support President Bush, (bumper sticker)
Partisanship ends at the waters edge. Let everyone know where you stand - with President Bush and our troops!

http://www.cafepress.com/constuff.11933678

[Tre]

once it down finally bottom out, corporations will come in and buy up blocks of property for dimes on the dollars.

Chinese corporations, mind you.

That's the thing.  I don't believe that there's great value in allowing foreign 'interests' to own so much of our real property. 

Right now, Japan, China, Norway (I think they said), and even RUSSIA are sitting on huge reserves of foreign currency, mainly U.S. dollars and we should expect to see them buying up huge chunks of real estate in the coming years. 

[Tre]

Every honest, hard-working American should pay less in taxes. 

Set up a home-based business, write off a portion of your utility, fuel, and meal costs and save yourself thousands of dollars on April 15th. 

Then in 3 years, close down your business and start another. 

[Straw Man]

That's the thing.  I don't believe that there's great value in allowing foreign 'interests' to own so much of our real property. 

Right now, Japan, China, Norway (I think they said), and even RUSSIA are sitting on huge reserves of foreign currency, mainly U.S. dollars and we should expect to see them buying up huge chunks of real estate in the coming years. 

I totally agree and I find it odd that these very same countries don't allow or greatly restrict foreign ownership of their assets (real estate, companies, ec...) but yet we allow our country to be an economic gang-bang for them.  

WTF??

[Hugo Chavez]

I have to disagree with everyone here... I WOULD APPLAUD, Bush on this... but it's to little to late...  They waited, they waited... then they waited a little longer and when they did this, they basically just decided to help out a small portion at the tail end of the bulk of those effected....  And Bush knows this so he gets no kudos from me.  He should have done this almost a year ago.  You guys, please stop with the bullshit ok, if you've watched anything on this, how can you support what went on in the bulk of this period?  I watched story after story where they sat down little old black ladies, hell anyone and everyone and sold them on this stuff like they were selling a bright yellow used care.  A bum with a temp job at McDonald's would have been signed.  I've heard this in the last few days, on TV, blamed on Clinton OH FUCKING BULLSHIT STOP THE CLINTON CRAP!  They use to tell people they didn't qualify all the flipping time!  Boom, comes 2004, take a look at what housing did during that year, that is the bulk of where this happened and the bulk are already forclosed on. 

The numbers were a huge talking point for the Bush campaign. "the best year for new housing in almost 25 years"   a huge perceived bump to the outlook of the economy.  well no kidding when the banks started doing that.

http://www.highbeam.com/doc/1P1-89758094.html

Sorry, I'm with Chavez on this, they started the con, there were no ethics involved in dealing with people looking for homes during this period, the least they can do is bail out the scammed...as much as you like, you all can't go blaming ONLY the stupid wannabe home owner who signed...  There's all kinds of legit blame to go around, pinning it just there is pretty convenient and ignorant.

[Hugo Chavez]

bush tried to stimulate the economy with tax cuts for the rich hoping for a trickle down effect. didn't work....the rich spend money when they choose not because another check comes in the mail.

when the above failed, lending rates were taken down to historic lows, which inturn increased borrowing and spending by the "middle class" thus stimulating the US economy. one problem, that type of stimulus only lasts a short time due to it's inflationary upside and bubble potential. bush was hoping the housing crash came AFTER he exited the white house.

george w bush = Worst President in US History

BBOOOOOM Good post!

[Tre]

Sorry, I'm with Chavez on this, they started the con, there were no ethics involved in dealing with people looking for homes during this period, the least they can do is bail out the scammed...as much as you like, you all can't go blaming ONLY the stupid wannabe home owner who signed...  There's all kinds of legit blame to go around, pinning it just there is pretty convenient and ignorant.

How on earth does 'freezing' the interest rate help bail anyone out? 

A person who can barely afford a $2000/month payment today isn't going to be able to afford the adjusted $3200/month payment a year from now or even two years from now. 

The best thing to do is to let all these overinflated homes fall into foreclosure and then buyers will be willing to re-enter the market once the prices hit numbers that are reasonable. 

Living in California, it's very personal for me - I paid more than $150,000 less than the poor schmuck who bought my home new in 2005.  I feel for the neighbors who bought in around the same time, but in reality, these homes were grossly overpriced back then and too few people were willing to say, "Whoa whoa whoa, this is STUPID!" because the people in power followed The Greed Principle to greater profits...KNOWING all along the middle-class taxpayer would get stuck with the tab.  Again.

[Hugo Chavez]

How on earth does 'freezing' the interest rate help bail anyone out? 

A person who can barely afford a $2000/month payment today isn't going to be able to afford the adjusted $3200/month payment a year from now or even two years from now. 

The best thing to do is to let all these overinflated homes fall into foreclosure and then buyers will be willing to re-enter the market once the prices hit numbers that are reasonable. 

Living in California, it's very personal for me - I paid more than $150,000 less than the poor schmuck who bought my home new in 2005.  I feel for the neighbors who bought in around the same time, but in reality, these homes were grossly overpriced back then and too few people were willing to say, "Whoa whoa whoa, this is STUPID!" because the people in power followed The Greed Principle to greater profits...KNOWING all along the middle-class taxpayer would get stuck with the tab.  Again.

notice I said to little to late...  This problem should have been dealt with over a year ago. What I'm saying is that only a small fraction is effected by this.  You have your wish, the mass majority of those caught up in this little game are in or have already been forclosed on.  Extending the period out will help some of these few that qualify.  People's incomes do go up you know.  The housing market for these guys will probably look much better.  Look, in many of these neigborhoods at the end of their low payment period, where the banks told them they would be able to get into a better loan were looking at the value of the home hit rock bottom with forclosures popping up all around them making it impossible for many of them to get out of the mortgage into a fixed, so into the sucking forclosure black hole they too went.  Anyway you slice it, the extented period will give them a better shot at staying in their home.  I think several things could have been done and should have been started last year.  So no, again as I said, no kudos for Bush from me on this.

[Dos Equis]

Great. Just fcuking great.

I hope all those who were applauding the tax cuts a few years back are happy now.

It's payback time.

Hopefully, the next president won't have to spend the whole time paying off on the gigantic national debt.

You think the current mortgage crisis is related to the Bush tax cuts?  How so? 

[Dos Equis]

Why can't we try "trickle up" tax cuts for once.

We already use the Robin Hood approach.  Put Hillary, Obama, or Edwards in the White House, with a Democrat Congress, and it will be even worse. 

Too bad Governor Linda Lingle isn't running. 

[Dos Equis]

Every honest, hard-working American should pay less in taxes. 

Set up a home-based business, write off a portion of your utility, fuel, and meal costs and save yourself thousands of dollars on April 15th. 

Yes.  Truth.  Tre for president.   

[Hugo Chavez]

Yes.  Truth.  Tre for president.   

You don't save all that much on a home based business unless you stip all the walls out and make one huge room for your office.

[Dos Equis]

You don't save all that much on a home based business unless you stip all the walls out and make one huge room for your office.

I was talking more about this:  "Every honest, hard-working American should pay less in taxes."

Re a home based business, you can actually save quite a bit.  You don't have to alter rooms.  Just gotta make sure you have a good accountant.