they r not going to pay off these loans, the goverment made these banks give loans to these people that could not afford a home , you make 10,000 a year & buy a 400, 000 home , yea right & now they want to take control , goverment control, im aginst this bailout
They are just using subprime morgages as excuse...kind of like WMD for IRAQ. I totally agree with gazzyjeanne. Call congress! support reps who voted no and get ones who voted yes out of office!
I seem to have accidentally removed gazzyjeanne's comment, so I'm re-posting it here: "They are lying about the nature of the problem. It is all the derivatives which were bets on the underlying mortgages and interest rates. This is what has blown up, much more so than the defaulting mortgages. The subprime mortgage defaults were just the trigger that set off the mess."
The bet was that in a booming housing market, even a default was a good thing, since the value of the foreclosed house would be higher than the paid-off mortgage. In a busting market, every default becomes a loss of unknown size. The crisis, as I understand it, relates to panic about that.
Tough decisions. How do we get through this mess without rewarding bad behavior?
iviewthetube 3 years ago
It's a problem, but we could confine it to a one-time one if we then defined lending more to someone than they can repay as loan sharking.
PaulSiraisi 3 years ago
they r not going to pay off these loans, the goverment made these banks give loans to these people that could not afford a home , you make 10,000 a year & buy a 400, 000 home , yea right & now they want to take control , goverment control, im aginst this bailout
luster145 3 years ago
They are just using subprime morgages as excuse...kind of like WMD for IRAQ. I totally agree with gazzyjeanne. Call congress! support reps who voted no and get ones who voted yes out of office!
jillduncan2008 3 years ago
I seem to have accidentally removed gazzyjeanne's comment, so I'm re-posting it here: "They are lying about the nature of the problem. It is all the derivatives which were bets on the underlying mortgages and interest rates. This is what has blown up, much more so than the defaulting mortgages. The subprime mortgage defaults were just the trigger that set off the mess."
PaulSiraisi 3 years ago
The bet was that in a booming housing market, even a default was a good thing, since the value of the foreclosed house would be higher than the paid-off mortgage. In a busting market, every default becomes a loss of unknown size. The crisis, as I understand it, relates to panic about that.
PaulSiraisi 3 years ago