Deal with cause not symptoms

[stevespets]

The cause of all the troubles on Wall Street is the housing crises. From what I've been hearing, the federal Goverment is proposing to help wall street. This seems like they are addressing the symptoms rather than the source problem.

If instead of bailing out wall street firns, we bailed out distressed home owners, I think the rest would stabilize.

So .. if they are willing to spend 700m, how about adjusting home mortages on homes that have a lower value than the amount of the mortage. The govt. could buy the difference with a future security if the house then appreciates. the home owners would then not be holding a mortage that is higher than the value of their home and would be less likely to default.

Less defaults, less "bad loans"

[WNYresident]

The cause of all the troubles on Wall Street is the housing crises. From what I've been hearing, the federal Goverment is proposing to help wall street. This seems like they are addressing the symptoms rather than the source problem.

If instead of bailing out wall street firns, we bailed out distressed home owners, I think the rest would stabilize.

So .. if they are willing to spend 700m, how about adjusting home mortages on homes that have a lower value than the amount of the mortage. The govt. could buy the difference with a future security if the house then appreciates. the home owners would then not be holding a mortage that is higher than the value of their home and would be less likely to default.

Less defaults, less "bad loans"

I wonder what they owe in total. If you took the people defaulting on their mortgages was it the amount?

[therising]

It would be nice if this self-imposed "we gotta get it done by Monday, or the economy is gonna collapse" deadline wasn't hanging over everyone's heads.

I spend more time shopping around for a coat, then they'll spend thinking about the best way to spend $700 Billion.

[Mary3]

The cause of all the troubles on Wall Street is the housing crises. From what I've been hearing, the federal Goverment is proposing to help wall street. This seems like they are addressing the symptoms rather than the source problem.

If instead of bailing out wall street firns, we bailed out distressed home owners, I think the rest would stabilize.

So .. if they are willing to spend 700m, how about adjusting home mortages on homes that have a lower value than the amount of the mortage. The govt. could buy the difference with a future security if the house then appreciates. the home owners would then not be holding a mortage that is higher than the value of their home and would be less likely to default.

Less defaults, less "bad loans"

It's 700 BILLION DOLLARS.

Fed has already infused in the past couple of weeks 1.5 TRILLION dollars.

So.....how is the 700 Billion dollars going to help?

No one should have a free ride, the cost of homes should come down in some areas drastically.

If you look at JP Morgan's deal with Washingtion Mutual WITHOUT the FED being involved, you kind of get the idea the excess of value of the mortages they are holding and the loss taken by WM so that they don't file bankrupcy.

[WNYresident]

Did our $300 rebate stimulate anything?

[Mary3]

Here's another thought about WNY and housing problem:

If people can't aford homes in FL, CA, NYC, Chicago, AZ, etc. and they require 20% down or more to get a loan, will the people who left WNY come back to buy homes here where the price of real estate didn't skyrocketing?

Will the retired people come back here who have left us in the past 3 years?

[therising]

Did our $300 rebate stimulate anything?

No, because average guys like you and I, don't know how to spend it right.

They shouldn't have sent it to us - they should have just sent it to those making over $250k. :) :rolleyes:

[Save Us]

Here's another thought about WNY and housing problem:

If people can't aford homes in FL, CA, NYC, Chicago, AZ, etc. and they require 20% down or more to get a loan, will the people who left WNY come back to buy homes here where the price of real estate didn't skyrocketing?

Will the retired people come back here who have left us in the past 3 years?


Good point,, but people still get concerned about


Jobs and taxes:D

[Mary3]

I agree that the bailout will not address the cause at all. It will result in waste of the 700 Billion dollars to taxpayers and the Fed saying over time they will hold and sell the bad paper is just goofy. If you already know what we paid for it, investors will not buy it at a premium.

At least with AIG bailout, we will end up making money. I still can't believe we the people own 80% of AIG. When will we see dividend on this deal? I would say the Fed will just use it to reduce the debt of the country.

[Save Us]

I agree that the bailout will not address the cause at all. It will result in waste of the 700 Billion dollars to taxpayers and the Fed saying over time they will hold and sell the bad paper is just goofy. If you already know what we paid for it, investors will not buy it at a premium.

At least with AIG bailout, we will end up making money. I still can't believe we the people own 80% of AIG. When will we see dividend on this deal? I would say the Fed will just use it to reduce the debt of the country.

there is always somebody willing to buy something.

the best time to buy farms is during a draught.

[Mary3]

Good point,, but people still get concerned about


Jobs and taxes:D

If the retired people can't aford the mortage where they moved to even with no income tax in FL, I think they will come back home after they do some accounting. :D

[Mary3]

Oh, there's one problem, they can't sell the house for the price they paid! :(

[gorja]

As much as I despise Bush and his administration, they did attempt to help remedy the situation in 2003, but my party the democrats nixed it.



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I can't that to work again.
http://www.youtube.com/watch?v=H5tZc8oH--o

[speaker]

Here is the latest:

"WASHINGTON — Congressional leaders and the Bush administration reached a tentative agreement early Sunday on what may become the largest financial bailout in American history, authorizing the Treasury to purchase $700 billion in troubled debt from ailing firms in an extraordinary intervention to prevent widespread economic collapse.

Speaker Nancy Pelosi, left, Treasury Secretary Henry M. Paulson Jr., center, and Senator Harry Reid, the majority leader, early Sunday.

Officials said that Congressional staff members would work through the night to finalize the language of the agreement and draft a bill, and that the bill would be brought to the House floor for a vote on Monday...."

http://www.nytimes.com/2008/09/28/business/28bailout.html?em


I think the market should be left to correct itself. This is a huge amount of money to be hurried through, and there are too many pirates out there.

No doubt we'd all pay dearly if and when the market collapsed, but there is something fundamentally wrong with this bailout.

[Enough]

Don't do anything and let the market correct itself.

[Cgoodsp466]

Here's another thought about WNY and housing problem:

If people can't aford homes in FL, CA, NYC, Chicago, AZ, etc. and they require 20% down or more to get a loan, will the people who left WNY come back to buy homes here where the price of real estate didn't skyrocketing?

Will the retired people come back here who have left us in the past 3 years?

If I ever get out of this state I would never come back.The Smart ones who left own their homes so no problems.Besides the ones that left are the smart ones. God bless em and I hope they stay gone. I hate NY I hate Niagara County,I hate Free Cheesers. Come to think about it Ionly like 8 people and I do lunch with 4 of em:D

[cookie]

Here's another thought about WNY and housing problem:

If people can't aford homes in FL, CA, NYC, Chicago, AZ, etc. and they require 20% down or more to get a loan, will the people who left WNY come back to buy homes here where the price of real estate didn't skyrocketing?
Looking at some of the census figures, the bulk of those fleeing WNY have been gone quite some time. The most recent of those that fled may or may not have spent more than they could afford. Plus, there hasn't been a huge increase in jobs, a decline in taxes or much headway in what many think of as corrupt politics to make them want to return? Just my opinion.
Will the retired people come back here who have left us in the past 3 years?
See 2 of the 3 points above.