Mortgages, credit card companies, housing, GMAC, banks and wallstreet are all getting bailed out so why aren’t you? Well, blame congress and the Fed. Congress refused to help GM unless their workers agreed to accept Toyota style wages. Congress even went so far as to hold Toyota up as a shining example of how a car company ought to be run.
Now comes the kicker, Toyota has a huge loss this year, just like GM, Ford and Chrysler. Seems to me that GM is running it’s business just as Toyota is. Perhaps congress would like to explain why Toyota also has a business problem this year. Nah, didn’t think so, congress just wanted to play bully to the car companies.
The economy is headed for even worse times, more mortgages are going into default, more homes are being repossesed and the downward cycle continues as some people who were lucky enough to refinance are now being repossesed also.
Sheesh, I read about one guy who couldn’t make his payments and asked to get refinanced. By the time the bank got through refinancing his loan his payments went up over 300 dollars a month. If he went into default with a payment 300 bucks lower why the hell do they think he won’t be right back in repossesion again in a few months. Does this make sense to you? It evidently does to congress.
IMO congress shoud have told the banks to go to hell, just like they did the car companies. Screwem, they’re the ones who caused the credit problem to begin with. Congress should just pass a law that says all banks and financial instutions have to refinance ALL MORTGAGES at 4.5% interest or less.
IOW any mortgage that is currently higher than 4.5% must be refinanced and the option is there for those who are paying less but need to refinance and are willing to do so at the 4.5% rate. Not only must the mortgage be at 4.5% or less, the new mortgage must be for the current market value of the house. Not the old inflated market value.
This would help homeowners who are in a huge bind because the banks knowingly loaned them money they knew was unlikely to be repaid. However the banks didn’t partuclarly care because they bundle all those mortgages into a package and sell them to someone else. This means the bank gets their money but the financial institution they sold them to takes the loss. Where’s the problem for the banks and why do they need to be bailed out?
Had congress mandated refinancing at the 4.5% rate we’d have a lot less people being thrown out of their homes and a lot less housing on the market, which is driving house proces down. Better to keep the people in their homes than give money to the fat cat institutions that caused the problem to begin with.
Once again congress does the stupid and did it with almost no thought t all. Had they put as much thought into the financial institution bailout as they did with the car companies we probably wouldn’t be in this mess. Of course if congress hadn’t removed almost all rules regarding interest rates, removed almost all rules regarding capitalization of said banks and financial institutions we wouldn’t be in this mess either.
Congress, being the greedy bastards they are, should have understood that the financial institutions are just as greedy and shady as congress is. Of course if congress did anything that the financial institutions perceived as harmful all those who voted for it wouldn’t have gotten the big campaign contributions. Yep, greedy bastards at congress could have avoided this whole mess just by writing rules to hold the institutions accountable.
So lets throw all of congress out, lets refinace all mortgages at 4.5% or less and lets let the financial institutions eat the loss. After all they deserve it.
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