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crazyboy25
International man of mystery

Registered: 05/31/09
Posts: 275
Last seen: 11 years, 1 month
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Re: Should foreclosed homeowners be bailed out? [Re: Two_Swarm]
#14597656 - 06/11/11 07:57 PM (12 years, 8 months ago) |
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Many of these foreclosures are the result of poor decision making on the part of banks,prospective homeowners, and deregulation. During the housing market bubble there was pressure to ease restrictions on banking practices, as a result banks began issuing sub prime mortgages. Many people desperate for the American dream bought houses they couldn't afford by listing a higher than actual stated income or by taking mortgages with steep price hikes.
Housing prices crashed, people couldn't pay their loans, banks don't get money, people lose their houses and then banks get bailed out.
I don't feel bad for most foreclosed homeowners, they were so desperate to own homes they took out loans they could only affordable if housing prices continued to skyrocket. Same thing for banks, they were issuing mortgages they knew homeowners couldn't pay back.
What we need(ed) is stricter regulation for banking. We could just deregulate everything and have the stupid banks go bankrupt and the stupid homeowners lose their homes but that wouldn't benefit anybody.
-------------------- "Life without freedom is not life... freedom is life."
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DieCommie

Registered: 12/11/03
Posts: 29,258
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Re: Should foreclosed homeowners be bailed out? [Re: Two_Swarm]
#14597686 - 06/11/11 08:04 PM (12 years, 8 months ago) |
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Quote:
What we need(ed) is stricter regulation for banking. We could just deregulate everything and have the stupid banks go bankrupt and the stupid homeowners lose their homes but that wouldn't benefit anybody.
It would benefit me, a prospective homeowner who saves money and buys only what I can afford.
If homeowners get bailed out, that keeps house prices artificially high and shuts me out of the market. Fuck 'em, there are plenty of small apartments they can live in.
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crazyboy25
International man of mystery

Registered: 05/31/09
Posts: 275
Last seen: 11 years, 1 month
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Re: Should foreclosed homeowners be bailed out? [Re: DieCommie]
#14597737 - 06/11/11 08:14 PM (12 years, 8 months ago) |
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Quote:
DieCommie said: It would benefit me, a prospective homeowner who saves money and buys only what I can afford.
If homeowners get bailed out, that keeps house prices artificially high and shuts me out of the market. Fuck 'em, there are plenty of small apartments they can live in.
I wasn't suggesting homeowners get bailed out, I only suggested stricter regulations on banks. Actually I doubt total deregulation would help you or anyone. Total deregulation would wreck havoc on the entire economy, booms and bust would increase in severity and frequency and most financial institutions would effectively collapse or at least be very limited.
The world economy is based almost entirely on speculation, if people aren't restricted people will suffer.
-------------------- "Life without freedom is not life... freedom is life."
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Newlord
The Evil White Man


Registered: 05/12/11
Posts: 720
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Re: Should foreclosed homeowners be bailed out? [Re: DieCommie]
#14597743 - 06/11/11 08:17 PM (12 years, 8 months ago) |
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Quote:
DieCommie said:
If homeowners get bailed out, that keeps house prices artificially high and shuts me out of the market. Fuck 'em, there are plenty of small apartments they can live in.
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