Mortgage Relief - A concerned American's solution to the mortgage melt downs

[arealtribute]

Corsaircid: I couldn't agree with you more...our government bailed out the banks using OUR taxpayer dollars, and those same banks are receiving money to lend at 0% interest and not even bothering to give out small business loans and are charging between 16 to 30% on credit cards. This next year will be even rougher on Americans as their ARM loans reset--the banks won't even stall doing that, so more people will lose their homes. We DO deserve better, but won't get it through our government!

[Corsaircid]

Hi Weeje,

Ireland has a serious financial problem and we now owe 60Billion since the Irish banks went bust exactly 2 yrs ago.We now are faced with our government placing tough times on us.The property market here was too, the cause of the problem because of our over-pricing and building.

However,the banks will not foreclose homes in Ireland because our government bailed them out with our taxes.

Why does this not apply to you guys in the US?

You deserve better!

Cheers!

[JonGorskikhLive]

I agree but I think 4.5% is still too much. It should not be no more than 2%-0% and all unsecured loans should be wiped out. If you want to know more about what I think you can watch me at JonGorskikhLIve.

[jeanqbxx]

Borrowers who are in ARMs are bad payers, you can modify thier loans to a 4% IR and they will still falling behind in their payments becuase they are bad payers, these people dont know how to handle thier debt, they want more and more without making enough. I think these people should learn how to handle debt before getting a mod.

[trzeppelinz]

the problem with a flat, government enforced mortgage rate is not the stability issue. that is indeed a benefit. the problem is access. that rate, that percentage figure, represents the bank accounting for the risk of a default (this is essentially self-insuring). The lower the enforced rate is, the fewer people the bank will feel safe lending money (only the best off financially; the least risky). the market is more efficient than the gov in finding the optimal rate. there is no panacea.

[cuadrature]

Weeje, at this point you should realize that the current global economic meltdown has been intentionally engineered! The secret elites of the world (Masons, Illuminati, etc.)wish to collapse the dollar and establish a "New World Order" of things. Do some research on the Federal Reserve and fractional reserve banking to see for yourself how the American people have been dupped and robbed since 1913, the year the FR was fraudulently established by congress with the blessing of president W. Wilson.

[WeejeC]

cuadrature; you and my brother Caleb are convinced of the NWO, Illuminati, Masons, Bildeberger, Plutocratical conspiracies. (I've seen Zeitgeist 3 times if that helps). At this stage of the game, I don't know WHAT to think. It's hard to believe what has happened to our country in just MY lifetime, but since you mentioned our being duped since the FedRes of 1913, how 'bout the subsequent JP Morgan engineering of the depression...deja vu, perhaps? Who knows WHAT or WHO to believe anymore?

[WeejeC]

Oh NO! Say it ain't SO! Yesterday I heard on CNN, (?), that some REPUBLICANS are all for doing an across the board mortgage rate cut to 4%. WHAT?!? I mean, I heard Steve Forbes suggesting all FHA loans be reduced to 4.5% last week, but ALL mortgages reduced to 4%? The reasons these Republicans gave were the same as mine...more discretionary income helps the economy, more property taxes get paid, more likely that banks will see more of their loans paid than dropped. Hmmmm. Stay tuned!

[pmango1000]

weejec: since gas prices fell over 50%....discretionary income HAS gone up and FAST...that average American who drives 1000k miles a month is saving abut $100 a month compared to the height...it just needs time to reflect in the economy...we will be ok...but if the government starts mandating the interest rates that banks can charge....it would be disastrous as many bank would get out of that business

[WeejeC]

Hi pmango1000! Here...let me paste an email sent recently:

WeejeC: I agree with you. It would not affect me since I am 75 years old and my house is paid except my house hopefully would go back to its original value so that when I would have to go to a senior home I could afford it.

Since I have family in Europe please note the following rates:Switzerland 2.5%;

Sweden  3.5%

It would help wouldn't it?

Sincerely,

R. Rickenbacher

Hmmm. How are Swiss banks doing?

[kleinchris]

Jeanie.. Life is not fair. Where is personal responsibility in all of this? Why didn't the people who are now affected by variable rate mortgages, get a fixed rate mortgage a few years ago? if people lost their jobs, why didn't they have an emergency fund saved? if they didn't perhaps they should have never bought a house. Now it is in the best interest for the banks to ry to work with customers on refinancing select borowers, but that should be the banks decision, not the government

[wazoome]

Here I disagree. I think the govt. should mandate banks that made bad loans provide a 6 month (one time only) period of interest-free penalty to pay the principle down on loans. Let people catch up on their loans & not lose homes. Hold this interest free time for repayment when the economy self corrects. Since interest is in effect made up money, not money held on deposit. That way the taxpayers don't take on the responsibility for these bad loans & bad borrowers during this tough economy.

[pmango1000]

wazoome: 6 months no interest payments would bankrupt those banks for sure...some banks are not even in position to give ONE month of interest free. The loss has to be REALIZED at some point. Actually falling housing prices is good because then more people can afford housing again...given interest rates stay low

[wazoome]

How would interest payments not realized bankrupt those banks? This is not money that secures any real debt, it is made up money. They could stagger these loans to offset one period and take a write off on it. I agree about the falling housing prices though. Maybe not so good for those who chose bad loans, but great for people like me who want to invest.

[WeejeC]

kleinchris; You're right, life is NOT fair, but made less fair when the perfect financial storm has hit so many. Many people lost their jobs or had their hours cut, but the bills remained the same. Their emergency funds are probably exhausted, their investments fizzled down to 35% of their worth, & many banks "cold shoulder" efforts to renegotiate loans. I have friends with A+ credit for 20 years suddenly hit the wall, & the banks are NOT helping! Personal responsibility goes only so far...

[wazoome]

And that all of this is painful for some is offset by the fact that many will be elated when they can finally buy reasonably priced homes and afford them, like our parents did. That is a win-win situation for America.

[WeejeC]

Here's another solution worth looking into...would love all your opinions...a guy by the name of Frank Evans has another idea...his video is called A Mortgage Relief Program for US Homeowners...look over to the right and scroll down halfway...sam9657, Wazoome, Indiattic, pmango1000...let's find some solutions, or...should we just wait and watch to see what happens in the next year? You all are very smart...post your solutions/suggestions!

And THANK you for caring enough to write!

[sam9657]

The fundamental problems is that we built too many houses and that currently the houses are valued at prices in which are not aligned to people salaries.

The solution is actually quite simple. We need to let housing pricing fall to a level in which people can afford to buy them. People who over extended themselves by buying a house they cannot afford need to either downgrade to something they can afford or rent.

Will this process be painful for many people? Absolutely. But this has to happen

[wazoome]

Bingo! The housing prices escalated to surrealistic values that would NEVER sustain the same level of purchasing for long. This was planned in the 70's by a group of real estate professionals and zoom it took off making many people very wealthy. The smart ones got out before the inevitable collapse. Others gambled and lost. Now it's time for sanity and lower home prices will stimulate sales once again. That's basic economics.

[MopDMTBARTL]

warzoome i got a question. when i finally woke up, I realized, why am I living in such a big house by myself w/ this big loan. I figured out cheaper ways to live & want to live more below my means and want to sell my house. though i don't believe i'll be able to sell it now for what I owe on my loan. I might have to owe 20k. would it be better to just stay in my house for now?

[wazoome]

You should speak to a professional. I am far from that. I went through the same thing as you years ago.

[MopDMTBARTL]

thx!

[wazoome]

Offshoring began as a cure for many business practices. For instance: reduced taxation, simplification of operations, fewer reporting requirements for things like OSHA, general asset protection, anonymity, lower expenses in wages, lower production standards...which has also created substandard consumables that are often dangerous and illegal in the U.S. Why are U.S. taxpayers financing this through covering shelters? Accountability????

[pmango1000]

wazoome: if the Government didn't mandate labor wages thru min wage and UNION legislation, those companies would be LESS likely to move overseas. If they would lower the tax rate our companies could COMPETE with other nations!! what's funny to me is we are both on the same side here...you are just blaming the Wrong people.

[wazoome]

Wrong again. The Govt. offered tax breaks to companies who moved overseas until Obama & gave incentive to move offshore. Since unions have been removed, wages have skydived, hours worked skyrocketed, & worker abuse has gone through the roof, destroying = this country. Wages haven't gone up here, but they have in other countries where unions exist and helped their economies. The tax rate should stay the same, but corporations should not get the tax breaks they've had. Pay their share instead.

[pmango1000]

wazoome: really? Obama already did that? r u sure? it would of had to have passed in just the last 2 weeks! Please send me the bill..If Obama does that...that WILL lead to those companies PERMANENTLY and entirely leaving USA thereby the federal government will get NO tax revenues from them as they will become entities of another nation!! Not a good idea to me! Tax breaks or not,at 35% WE have the 2nd highest in the world and US companies will continue to leave until that rate goes down!!

[wazoome]

Cut the act. Surely you are aware of what his pre election campaign policies were...or at least you should have known the candidates. Actually, companies will return to our shores when this passes, because the same companies will not want to pay the import taxes for sales in the U.S....one of the most desired markets in the world...so you have that backwards. It has been effective in other countries where it was implemented and that is where the idea came from.

[pmango1000]

cut the act? Has Obama passed a law that effects those who outsource overseas? has he?  I don't care what he promised in his campaign ...Obama has already been proven a liar on many promises

[wazoome]

Obama hasn't even been in office long enough to be proven a liar, so I don't get you. Although the Palin faction was proven repeatedly to be lying BEFORE they lost the election. Obama has discussed the policies he intends to work on, and yes, his U.S. Trade policy and will stop providing tax breaks for companies shipping jobs overseas through outsourcing activities and instead give tax breaks to companies that invested in the United States. Watch what happens to our unemployment then.

[pmango1000]

wazoome: so when a company leaves the USA to do business in Ireland and they say they moved because the Corp tax rate is only 12% there...who are you going to blame?

[wazoome]

No one as long as we tax them to make up for it when they try to sell within the boundaries of this country. I think you may see some changes in thinking then. And then companies will also be paying healthcare and pensions which will offset the cost of taxes. THINK!

[pmango1000]

wazoome: the US government cannot tax a company's income if they are not a US company...that doesn't make sense

[wazoome]

The US government can tax imports to this country not manufactured or serviced here. And the offset of that is that they can also give tax breaks to those who keep jobs here, making leaving the U.S. not profitable.

[pmango1000]

wazoome: correct me if I am wrong... The US government ALREADY taxes imports, right? ...how will it change anything? Add a tariff to US company's goods and that tax is passed onto the CONSUMER...its inflation no matter how you look at it. Outsourcing is a REACTION to our government's actions and the need for cheap labor...are you fighting for the US to have MORE menial labor jobs or sweat shops?

[wazoome]

The U.S. govt. could RAISE taxes on imports to keep U.S. made good competitive in pricing here. There is no reason Toyota should have the same benefits as Saturn if the parts are made outside the country. That would motivate the sales of American manufactured products and bring businesses back to our shores. I'm suggesting that everyday Americans are the consumer market and if they have jobs, they will buy and beef up the economy. If not, the economy remains in a near depression.

[WeejeC]

Hey Wazoome...thank you for your GREAT email...I'm still going through it and your story line by line, with intentions on addressing it in further depth, but in the meanwhile, your IDEAS, (if you were President), are FANTASTIC! Some I agree with heartily, others...I'm not so sure. I mentored 4 high risk latino youths for 14 years...we ran into problems with our corrupt police department with one of the boys, (RAMPART="frame the innocent") , so I know of what you speak. The tables are tilted.

[wazoome]

Reduced equity issues have a way of self correcting in time for the average American who chose a logical loan package and holds onto their home. Not for the greedy who jumped at ARM packages they couldn't afford. This video proposes benefits for real estate poor investors who shouldn't have accepted loan packages they couldn't afford with get rich quick schemes of investing. Because they can sell those dinosaurs off with lower interest and walk away. Why should I finance their stupidity?

[pmango1000]

weeje: I disagree, the stimulus checks & tax cuts did what they were supposed to do: keep us out of recession that had been looming since 2001! You forget that 9-11 and Katrina cost us over $2 TRILLION...the subprime meltdown was the nail in the coffin. After the last quarter the checks were given out, the GDP grew by 3.7%...twice of what they were predicting...downside to the checks was that some people were NET gainers of Treasury money as they paid little Fed tax, yet still got a check.

[sam9657]

People who do not understand basic economics should not be comenting on how to fix the economy.

There are many issues with price setting mortgage rates. The poster assumes that the amount of credit is unlimited, interest rates need to go to a level to incentivize savers and to compensate the risk the banks are taking on. As we have learned from history price setting leads to shortages, so while 4.5% APR on mortgages is good but not if no one is willing to lend at this rate.

[wazoome]

Money or FIAT notes are created by debt or notes of debt held in banks. This makes credit and debt unlimited since one feeds off the other. Banks are guilty for our current economy by not holding debt to only what they have on reserve in deposits. They cover lack of reserves using a fractional reserve requirement. It is misleading. Borrowers debt notes held at the bank are used to provide a false sense of reality about reserves. Basic economics 101 and why we have so much debt today.

[wazoome]

I'm sorry people are losing their homes, but I lost mine years ago and no one helped me. Now it's my turn to take advantage of this market, so why should I help them when I never had that benefit? Why shouldn't I have the opportunity to enjoy this market and their loss? And why shouldn't the power brokers change hands to those who want to use this market? As an investor, I think it's time the American govt. stayed out of this. Let people do what I did and come back from adversity.

[wazoome]

And through overcoming adversity, they will enjoy the advantage of appreciation when they self correct. This message is paid for by real estate people who were the initial problem by creating a false market that spiraled home values to unreal levels. Now that they were stupid enough to invest in subprime mortgages, they ask for govt. help. I say NO! Let the market self correct and Americans learn to purchase responsibly, not reward these real estate thieves with more beneficial govt help.

[wazoome]

Losing your home isn't  the end of home ownership. It's a temporary situationone can bounce back from. I understand it is depressing. Been there, done that! But you be real about what you can afford. This idea that you don't save, put no money down and take unrealistic loans isn't the way to do it. It is a false sense of security--a bit like buying Prada and living in subsidized housing. Not reading the fine print is not excusable, or we'd all need govt help for poor contracts not just few.

[WeejeC]

Wazoome, it's AWFUL that you lost your home! It must've been devastating...no doubt you wouldn't want others to unnecessarily experience your pain. You said you lost yours "years ago"...the economy: how similar was it then to what's going on now? How much was YOUR responsibility, combined with an economic recession creating a domino effect where people are losing their homes BECAUSE of sub-primers walking away?

[WeejeC]

Oops...I hit enter@the wrong time...I agree...you SHOULD take advantage of this market...PLEASE DO! Someone needs to put money into the economy and I'm glad to know you're able to do that! Also, I agree: you don't build muscles lifting paper clips, and adversity builds character. If you have overcome it, particularly in these unusual circumstances, PLEASE POST HOW! Believe me, Wazoome, I'm really scared by what will happen in the NEXT wave of balloon foreclosures...what do you predict?

[wazoome]

I think we are all concerned about the next wave of foreclosures coming due to Option ARMs. But, there are many who are investing in this economy and taking advantage of the losses. You see them at auctions, purchasing quick sales, all over. They are investing in rentals and building THEIR futures and doing it in sound ways. I don't feel one person's family is more important than these families. The money is simply changing hands now and other families are giving this market a shot.

[pmango1000]

wazoome: nicely put...I wish more Americans would understand your thinking...or as I would call it: the CORRECT way things work

[wazoome]

WeejeC, I have no ill wishes for anyone in this economy, because I have experienced the down side of things. And I accept FULL responsibility for losing my home as should EVERYONE, including those who didn't acquaint themselves with sub prime lending. Because in the end, when you purchase anything, you should know the details of that purchase, not simply trust unscrupulous realtors. ANY time a person loses their home because of poor debt issues, it is their fault in any economy.

[indyattic]

It won't work, because price controls create shortages.

It's that simple.

[WeejeC]

Please explain further...:>)

[pmango1000]

Does this lady understand that the "bailout" is actually a pretty high interest rate LOAN that will be paid back to the taxpayer with profit to the treasury??

[indyattic]

The loans might be paid back, but the interest expense reduces their pretax profit, so we the people aren't really profiting because their tax base is reduced.

If you want to loan them money, then go ahead. Stop loaning them mine is all I ask.

[WeejeC]

Banks are being subsidized by TARP. Their losses are deductible. The inventory of foreclosures are a greater risk than an ongoing reduced interest. They're still getting over 4% profit in interest, more people paying it, and HOPEFULLY States start receiving Property Tax Revenue again so they don't have to continue draining Fed resources. This is NOT for the sub primers...this is for the 2nd wave...think Florida, condos, developers, balloon rates...it's temporary, not out of YOUR pocket.

[sam9657]

WRONG, inflation is a hidden tax and DOES in fact come out of the tax payers pockets. You have to remember that the government does not really have any money, every penny they have they either have to take it from taxes or a hidden tax called inflation.

[wazoome]

Exactly, because unlike banks that use nonexistent interest money to exponentially grow profits, individuals can't do this. Unlike banks, we can't use debt notes to issue credit, and increase the amount of fiat notes available in the economy as a reaction to worsening economic conditions. We are stuck with the fiat notes as tender and the inflation that accompanies that. That IS a hidden tax.

[pmango1000]

indy: what's your point? As long as the LOAN gets paid back...the taxpayer gets their money back. its not all just YOUR money....the Wall Street Guys and the Bankers are ALL in the top 10% of tax payers....the top 10% pays 75% of ALL Federal taxes.....this loan is THEIR tax money. They are actually giving themselves loans. People are bitching about the $18 Billion in bonuses...well $6.48 billion went to the government in TAXES. Face it: the Wall Streeters are paying for the loan TWICE

[wazoome]

Actually no, pmango. The top 10% pays the least in Federal taxes after write offs and with fractional reserve requirements instead of ACTUAL reserves determining loans. Taxpayers are getting screwed by bankers using our money to finance 9 parts of a 10 part loan this way, and THEY make all the profits so they should pay 9 parts more taxes, but they don't. We need to remove this FIAT system of currency and then I might agree with you somewhat. Until then, Americans should get a higher tax break

[pmango1000]

wazoome: we ALL pay what's called "taxable income"...no matter how you spin it...the top 10% pay 75% of ALL Federal taxes, its a FACT you cannot argue and you sound rather uninformed to argue otherwise. Haven't u ever heard of "The more you make..the more they take"???? Besides with AMT and deduction limitations, you are wrong. We need to remove the progressive tax system...it penalizes those for hard work. Carl Marx would be proud of our system as it matches the Communist Manifesto Platform

[wazoome]

Not everyone pays based their ACTUAL taxable income. For instance, abusive transactions made by former KPMG executives cost the U.S. $2.5 billion. The top 10% pay the least in taxes because tax shelter fraud costs taxpayers billions of dollars. Top accounting firms generate at least $11 billion in phony tax losses annually. Tax shelters are investments that allow reduction of liability. Examples include investments in pension plans and real estate.

[wazoome]

And by the way, that is also known as corporate welfare along with other programs to reduce liability in taxation. This benefits no Americans, but enhances the profits of greedy businessmen. A better taxation plan would use a standard percentage across the board, and any off shoring enterprises would pay for the luxury of taking jobs off shore and saving money for production costs. We shouldn't be financing business. We should expect them to finance themselves.

[pmango1000]

wazoome: no matter what u say: those same "tax cheats" at the top pay more taxes than 90% of ALL taxpayers...even with their "illegal" writeoffs. u r simply parroting "Corp Welfare" from the left...meanwhile 22% of the ENTIRE FEDERAL BUDGET pays for WELFARE and medicaid for the BOTTOM 10% of the country that pays NO fed income tax...add in state and local handouts and the taxpayers spends $1 Trill a year on the bottom 10%..who pay NOTHING in fed taxes and very little in state & local taxes

[pmango1000]

wazoome: you call it "corporate welfare"...I call it money to expand business...money to create jobs...money for the INDIVIDUAL to choose where that money gets spent. you wonder why people move their money out of the USA? THE GOVERNMENT TAXES THEM TOO MUCH!!! The 2nd highest corporate tax rate in the world doesn't help EITHER!!

[wazoome]

But it should be THEIR money, not ours, because it doesn't create jobs when they ship them offshore. IF YOU DON'T LIKE THE RATE OF TAXATION HERE then take your business overseas and try it there, but if you are here, then finance your own business the same way I have to finance my budgets. DON'T ask me to foot the bill for you.

[wazoome]

And that goes for subsidizing individual subprime loans of individuals too. You can't offer one entity help and deny another, because you feel welfare helps you. Welfare should be distributed to EVERYONE or no one. So do you feel these borrowers should receive govt money for getting behind on their loans too? After all they are creating jobs by keeping real estate prices stable, no? That is assinine thinking on both accounts. Hold EVERYONE accountable, evenly.

[pmango1000]

wazoome: agreed! accountability is important!

[wazoome]

Then you should oppose corporate welfare. Business tax cuts ARE corporate welfare, especially when they try to pass on the expense of taxation to consumers. Consumers have the power to close businesses that operate this way, by purchasing from businesses who don't operate this way and offer lower pricing. It's called competition.

[pmango1000]

wazoome: now u are all over the place... I said when u RAISE Corporate Taxes, the COST is passed onto the CONSUMERS..corp tax cuts put money into the business owner's hands to FREELY choose where the money will go ie: new job position, expansion, R&D, debt payments. So what rate do u think is good for Corporations to pay then? 35% is correct amount to tax? at what rate would you not consider it "corporate welfare"...Keep in mind that Ireland's Corp Tax Rate is 12%...is THAT "Corp Welfare"?

[wazoome]

Why should ONE entity "FREELY choose where their money goes" in a budget & not another? Do you realize Irish companies also subsidize medical expenses of employees? Contribution is 8.5% of gross wages for employees with weekly earnings lower than €356 and 10.75% of gross wages for those greater. There are 9 public holidays in Ireland each year where we have either 5 or 6 depending. Don't present only PART of an argument and hide the rest of the expenses. Thats why they have lower taxation.

[wazoome]

Middle America doesn't have the benefit of Free Trade Agreements paid for by Lobbyiests and govt. controlled institutes with high level executives driving policies. I'm sick of these fat pigs dictating public policy mandating that I pay for their waste...like jets while asking for handouts. It's time for business to buckle it's belt tighter as well and manage their businesses or go out of business. We shouldn't finance big business through taxation and unethical policymaking.

[pmango1000]

wazoome: you do realize that Corporations paid more in taxes last year than the entire bottom 50% COMBINED paid in taxes? People who say that the rich don't pay taxes have never made more than $100k or they are liars...the rich pay almost all of the burden.

[wazoome]

Corps should pay more with the amount of profits they make, but individuals who run those corporations often paid LESS than middle income earners. Explain that! How many middle income earners do you know bringing in 7 figures? Also, the percentage of rich at the top is small, so I think you are inflating your figures a bit, no? Currently, there are over 10 million residents WORLDWIDE classified as millionaires. We won't even go into the truly wealthy, because today a mill is not much.

[pmango1000]

wazoome: what do you mean by YOU are footing the bill? With 35% Corp tax rate (the SECOND highest in the world) businesses ARE moving overseas! Blame the government NOT the businesses! Business tax cuts are NOT Corporate welfare...overtax corps and guess who pays for it??? That's right the CONSUMER.... WE pay for it through HIGHER prices...its called inflation and the high tax rate is part of that problem.

[wazoome]

ME...the taxpayer! Taxpayers reap no rewards from this. Concocting phony tax shelters for wealthy clients to dodge income taxes is not a job producer. It is a personal wealth builder for those dodging taxation, nothing more. Businesses moved overseas long ago to save on production costs, not taxation. With Republicans crooks in office they paid LESS taxes. If consumers don't buy consumables from corporations passing on tax costs, business are forced to operate intelligently & that happens.

[pmango1000]

wazoome: ummm u do know that the majority of Corporations are owned by MIDDLE CLASS people thru small businesses? Right? Actually under Bush The government received MORE in tax revenues from Businesses than prior years. You really need to read more....sorry...lower taxes means more things for the government to tax at a lower rate...raise taxes and the market reacts...its pretty simple

[netvista1008]

Sorry, while I don't support the bailout of the big mis managed financial corporations, I don't support the concept of average americans who didn't sign up for loans they can't afford having to pay to bail out financially irresponsible citizens.

[WeejeC]

I agree. This is not a taxpayer bailout. This is a BANK SHARE OF RESPONSIBILITY. This is to help those who have HAD mortgages all along, who've LOST the equity in their homes DUE to the sub-primers irresponsibility, and are losing their jobs. Also, there will be a TSUNAMI of walk-aways as balloons and ARMs come due, which will worsen the problems for ALL Americans. The Commercial developers alone will be walking away in droves as their balloons come due. We as a nation can't afford this!

[indyattic]

The banks are losing money hand over fist as it is. How much more responsibility do you think they should take? When do the individuals become responsible?

[WeejeC]

Whatever we did with the Joneses, it didn't work. Well, actually it DID, initially, which is what threw everyone off. THEN, the pendulum swung the other way, and people's lives came to a screeching halt. Today a man in CA shot his wife, 5 kids, & himself due to being fired...on the other side of the news, a bitterly ironic contrast story on CBS local TV: People shopping on Rodeo Dr. in BH are asking for brown paper bags to hide their purchases...they're EMBARRASSED.

You have to laugh.

[indyattic]

The guy who shot himself was fired (as was his wife) for lying in order to get benefits they were not "entitled" to. It had nothing to do with the economy, as health care is one of the only two industries still in growth mode.

He could have easily got another job.

[NoBlowBama]

Yeah, but they have to blame his suicide on the economy.

That would be like blaming Hitler's suicide on the War.

[WeejeC]

You made me laugh out loud...thank you! Yeah, I found out a couple days ago that he and his wife had lost their jobs to misrepresentation more than the economy. AND, cowards that they were, they, (he?) took their collective lives rather than face the music. And the innocent children? This is BEYOND human dignity...it's tragic, selfish, calculated, cold blooded murder. "Hitler's suicide on the War"...that was a GREAT comment! I'm still enjoying that... Thank you!

[skalami0]

All of this was done in the name of keeping up with the Jones's. We made a law long time ago saying you cant use savings money for risky ventures but we saw other countries profiting from that law so over a few decades they abolished it and those greedy investors started playing with our money (like monopoly money) which gave us an extra .5% return, YAY! So now most of our savings gone and were now drilling through goverment savings and taking loans.

Were screwed

[skalami0]

the dominos are falling, the fed and other goverment money agencys are starting to pull dominos from the end of the line to reinforce the area just ahead of the falling dominos. All it does is slow down the progression, sometimes not at all. In doing so weve just made it worse for when/if we do stop the dominos falling we'll have a lot less dominos left to rebuild with.

another half baked thought from a fully baked me.

[john1234r]

Good video, HOWEVER, I insist that it MUST NOT be limited to mortgages ! Auto Loans, Credit cards and Loan shark loans ALL need a cap of 4.5 % ! Every Loan payable by legal tender needs a flat and immediate rate cap of 4.5 %

[WeejeC]

John, I agree 100%. The banks have made ENOUGH usurious profits on the backs of Americans and are going to exhorbitant lengths to keep Americans "in the hole". My next video coming out in a week will address the nefarious practices of the "predator creditors", with Chevron Texaco credit card as my example. Last night I received a comment from a guy who got totally ripped off by CHASE--his story is one of MANY, and we need to go after these companies--particularly those attached to JP Morgan!

[Hovde1]

Whether we (Norwegians) are smart or not I can't say, but our welfare system is organized in a way that gives everyone the possibility of free education all the way through university and free health care. Many Americans seem to believe this is socialism, somewhat like it was in the former USSR. It is not. What we have is called Social Democracy.

[pmango1000]

call it what you want... your system CREATES MORE inequalities...just as our welfare system actually hurts everyone in the long run. The only people who should be on welfare is the handicapped, instead we have welfare recipients who: drive new cars, have 2 flat screen TV's, buy cigarettes, drugs, have $100 shoes, get free lunches while their mom's have $300 hairdos. Socialists r so into their policies u don't realize that social security IS the REASON why people are poor when they retire

[WeejeC]

I just sent you a lengthier explanation. I agree with you about welfare and those who exploit it. This solution is not intended for THEM but for those who've done all the right things but are now caught in the undertow created by the sub-primers. This is a TEMPORARY solution that holds the BANKS accountable, not the taxpayers! Thanks for your thoughts though! I know of what you speak...:>)

[gunsandroses1111]

From the UK. Here all made unemployed have Mortgages or rents paid by the State. Surely something similar is possible in the US along of course with, as here, totally free Health Care? US resources are far stronger than US.

[happyhead64]

nothing like that in the US and NO, no free healthcare whatsoever, unless you want to use public health, and thats horrible....no rents paid by the state (except for the horrible section -8 program)....if people lose their jobs they have to apply for unemployment...if they lost their jobs because of their own fault, they get nothing.

[WeejeC]

And those who were self employed have lost many accounts, can't afford health insurance, and are just plain screwed...what kills me is how many people still think Bush did a wonderful job as President...Rush Limbaugh said the other day that he hopes Obama fails...what kind of "patriot" wishes to see this country in ruins? Only those whose greed exceeds the greater good of all would wish failure upon WHOMEVER was elected.

[WeejeC]

You have GOT to be kidding! REALLY? I'm moving to UK then...there IS no federal bailout for mortgages or health insurance HERE, in the "richest" land on the planet. We have instead, a lovely legacy of mismanagement of trillions. In the U.S., there is a misconception of SOCIAL DEMOCRACIES...for instance, Norway sees nothing wrong with having a SMART, EDUCATED and HEALTHY nation...that's why they pay collectively for education and health care. And they're a very respected nation.

[Hovde1]

The Scandinavian countries are among the wealthiest and most well-functioning capitalist states in the world. Read more about the "Scandinavian welfare model" at Wikipedia.

[jimjaas]

Let's pay off all houses!!

By the way, some $8k monthly allowance from the gov would be nice.

Just for stimulation...

[WeejeC]

In the words of that song from My Fair Lady, "aaaaahhh WOOOOOULDN'T it, be loverly...LOVERLY...loverly...­"

[OnlywaytoheavenJesus]

After someone has been paying on their house for let's say 10 years or so and has equity built up in it, then loses their job and the bank forecloses, shouldn't the person get something back from the amount of equity in the house? I don't know anything about foreclosures but it seems like they are stealing the people's money they have already paid in. The bank get's the house plus all the money that's been paid for all the years before the foreclosure. THIEVES~!

[WeejeC]

Assuming there IS equity left in their homes...but because of foreclosures in their areas, even "prime" neighborhoods have seen 60% devaluation of their properties, so those who had planned on selling their homes to purchase smaller properties and pocket or invest the difference HAVE no difference to pocket. Even folks who have kept up with their mortgages are punished. The banks ARE thieves with no hearts or social conscience...just an overwhelming desire to rob and mistreat people.

[evil9999999999999999]

Remember when this started Americans were forcing sex offenders out of their homes, jobs, and lives without regard for how it might effect our economy. These thieves are taking America to the banks literally. This is a crime of incredible proportions. If you can not connect the dots by now you chose to be blind. These thieves have set up a through port to throw out their neighbor and take the wife, kids, home job and sell any or all on ebay, or auction it right on TV. Planning a crime is easy

[WeejeC]

Good point. As one who unwittingly invested in Merrill Lynch, I can attest to the sadness of losses there. Do you own a house too? Well, there are those who made payments for years who now suddenly find themselves unemployed. Should they who were once PRIME loaners (and now broke as a result of using their life savings to shore up what they suddenly lost in employment) be punished for not having a crystal ball that predicted this huge economic crisis? It's the sub-primers who destroyed us.

[bufforilla]

All I see is someone else paying with tax dollars for others Irresponsibilities and Greed. Life is full of risks, How much you calculate the risk you take is up to each person. There is no free ride, No bailouts. Misfortune happens to everyone, Its not up to others to be forced to pay for it. Interest rates at 4 1/2% sounds like a nice idea, But in the end others will have to pay for the shortfall thats created from it. I wish there was an easy fix for this big mess, But i dont see any.

[edmack4me]

It's the bankers that are ruining both the US and the world economy.

[bufforilla]

If the mortgage rate was lowered to 4 1/2% who is going to make up the shortfall of the investors capital made on the high risk borrowers. I believe if you dont know what you are doing when you buy i house then more than likely you shouldnt have bought one. Forget all bailouts to everyone public and private, let each fall as they must and the others rise as they should.

[edmack4me]

Your solution is too sensible besides this economic meltdown was planned by nwo.

[WeejeC]

Yes. It would seem that the plutocracies of the past are still the rulers of the present, and more than likely, rulers of the future unless WE decide we've had enough. The "New World Order" is really just an extension of the Old World Order. Keep the rich very rich, keep the poor very poor, keep the chasm between the two as wide as possible. I have watched so MANY "upper middle class" friends lose EVERYTHING in the past 8 years. Of course, it's always THEIR fault...

[zymandu]

who actually owns the land on which we live? The banks? The investors? The government? When the Europeans came to America didn't they pretty much take the land from the Indians and claim it as their own. Which , i guess, is something you can do if you have standing armies and guns and such to protect that land. Who actually owns this land? Maybe the people who are occupying any given space are the rightful owners to the extent that they are willing and able to protect that land. We the People.

[WeejeC]

You're right...who DOES "own" the land...anywhere? Is it conqueror spoils? There was a homesteading movement going there a while back but it seems to have "hushed" down. However, I've heard of squatters actually moving into houses that didn't have people in them at the time and claiming it as their own...(this from an Aussie friend of mine who was living in England at the time he saw this). Imagine returning to your house and having to go through eviction procedures of people in your home!

[WeejeC]

Hahaha! AMEN to THAT! Personally, I think I'm partially owned by China, Japan, and a touch of Saudi Arabia, which is a little unnerving at the very least. I hope you are debt free, as all of us should aspire to be...most Americans by now have realized that it is pretty irresponsible to spend more than you make...cash should be king as soon as people can get caught up!

[markynj]

How about Government bail out every working American, $150,000. ea.

That's $300,000 per working couple.

The taxes paid alone would go right back to the government.

Home owners would pay off a large amount of payments, putting money right back to the banks.

Graduated students would pay off their student loans, that money would go right back to financing.

Credit card holders would pay off the balances in full.

Money would be well spent in the hands of Americans instead of bankers.

Think about it!

[WeejeC]

A WONDERFUL idea, particularly to non home owners and FAIR to most Americans...however, I can hear the Republicans NOW..."SUPER SOCIALISM!"...in any case, something desperately needs to be done. Thank you for your great idea and comment. As long as Americans are THINKING about solutions, we'll get back to a stable economy!

[earlalan23]

even if interest rate where at 0% you still need a job to pay the note.

[WeejeC]

SO TRUE! Unemployment here in California is expected to reach 10% very shortly...There is SO MUCH that needs to be corrected in our Country...I've only STARTED with the mortgages...next video will be about the OUTRAGEOUS USURY practices of Credit Card companies, who, at the moment, can get away with murder up until 2010. We need to stop them now! I appreciate your comment and your taking the time to watch the video and submit a comment. THAT is the AMERICAN WAY!

[jinjin16]

Then how are you going to pay the foreign investors you borrowed the money from in the first place?