Subprime bailout? $120 billion

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This looks like another way of subsidizing the lending corporations.



Just the opposite. Aldaris has it right: "pandering to the bottom class to get votes."




'Bottom class' is a disgusting term to describe people. I don't know why you were so fond of it to quote it with such pleasure.
 
Heck no we shouldn't bail them out. If they do, I'll start "cutting a few corners" when I file my taxes each year. Just kidding of course...
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Me thinks we are in for a hard correction both in home prices and in the stock market. I don't feel bad for the loan companies or the people who took those loans.
 
Easy (and socialized) credit creates rising prices, which fuels speculation, creating artificial demand for housing, and increased economic activity. It makes people busy, generates votes, and looks good on paper, but eventually you run out of something, and the boom collapses.
 
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This looks like another way of subsidizing the lending corporations.



Just the opposite. Aldaris has it right: "pandering to the bottom class to get votes."




Well, I probably shouldn't post in a thread that's about to get locked for POLITICS, but I will pose this question: who's really being pandered to here -- the "bottom class" voters, or the corporate citizens who are otherwise going to be eating huge losses unless they receive a nice does of corporate welfare to bail themselves out of the loans they never should have issued in the first place. There's plenty of stupidity to go around here. IMO, it's just as much on the shoulders of the lenders as it is the borrowers.

So, exactly how is this NOT a political thread? In the interest of full disclosure and fair play, since I've commented, I won't lock it (not for politics anyway...).
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So, exactly how is this NOT a political thread? In the interest of full disclosure and fair play, since I've commented, I won't lock it (not for politics anyway...).
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Because as much as the blame can spread, it is the stupidity of the folks who sign on the line that must be faulted. And as such, regardless of the vehicle of making things right again (which is inherently political), it is a matter of the stupidity of the population that is the key thing to discuss and gripe about, and the populations' stupidity is not a political topic... It is a humanitarian topic
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JMH
 
I have to agree with ekpolk.... create a fancy new subsidized home loan, who wins? People who already have land to sell... EG the filthy rich.

Create a super new student loan program... college tuition goes up and the Polar Zebra Studies department gets its own marble building.

Make car loans easy and watch the Hyundai Accent put on weight, power, and lose MPG.
 
We know a guy who is a professional photographer. He does weddings, and real estate, and takes videos of the auctions (apparently you need a record of the auction these days).

2 years ago, he used to video tape foreclosure auctions at 1 per month, now it's 4 to 6 a week. Banks don't care, as they get the auction price, and then can go after the "owner" for the balance.

Govt handouts, while seeming to appease the voters, usually end up appeasing "mates" more often, and when you scratch a little deeper.

Like my views on car industry handouts...rather than developing a corporate welfare system, the Govt should assist if they can, but the assets should then pass to the Govt, and be bought back by sensible business practices.
 
Prices lag changes in demand, which creates an unstable system, prone to oscillations. You can try to damp the oscillations by waging wars, building pyramids etc, but nobody really has intimate control over them. The best thing is to make the system flexible, so people can move and change jobs as quickly as possible, without suffering hardship too long. Keeping dying business in business, or keeping people in their 2500 ft^2 homes they don't really need only prolongs the bleeding.
 
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who's really being pandered to here -- the "bottom class" voters, or the corporate citizens



Well they both are being pandered to. But the people who recieve some consideration on their loans are very likely to vote for the party/person who saw fit to raid the public treasury to bail 'em out.

Now I'll vote against that person, but ultimately there are more of "them" than me.
 
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I have to agree with ekpolk.... create a fancy new subsidized home loan, who wins? People who already have land to sell... EG the filthy rich.




The home loans are already subsidized - what other personal loan, besides education loans, has tax deductible interest?
 
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