how does this affect main street?

[WNYresident]

Cookie
Thousands of calls and this is how Reynolds sums them up:
“The phone calls into the district office are about 75 percent saying: Don’t do this. They think this is about Wall Street. They don’t understand this is getting to Main Street,” Reynolds said.

What Mr. Reynolds and many other of our elected officials do not understand is that many callers DO understand it is getting to both.

So what is the problem here? Are they not listening or are we being too concise in articulating our concerns? Or do people actually feel it only affects Wall Street and not Main Street?

So if you house is paid off... and you have no credit card debt...and you have cash in the bank that is supposed to be insuranced up to like $100,000 etc.... So what if AIG goes broke.... So what if idiots purchased homes FAR about their means and they lose them.... Yes it's sad but they should have been smarter....

[WNYresident]

What were the exact few companies that are going belly up?

Who are thier competitors that are still in busimess?

[cookie]

You're right. I'm the one that probably doesn't understand.

Bail out or no bail out, someone WILL be paying. Either through taxes if there is a bail-out or higher costs of most everything if there isn't. If there isn't a bailout, it won't affect just those companies that close and people who over-extended themselves. Not all banks and financial entities will close. Some will merely lose alot of money. Who do you think they will gouge to make up their losses? The taxpayers that DO have money left via lower dividends, higher interest, more fees etc. It's even more involved than fees and interest and dividends, but either way you look at it, we're gonna get hosed. I took Reynold's comment to mean that we don't understand that is a possibility.

[cookie]

How many people do you know that have no mortgage?

[RagnarThePirate]

10,000 people a day losing their homes to foreclosure.
Their fault? Probably.

But you have to look at the big picture...

It will cost a lot less to setup the terms to keep them in their homes and PAYING on them, then the long term effect of losing their homes.

[cookie]

10,000 people a day losing their homes to foreclosure.
Their fault? Probably.

But you have to look at the big picture...

It will cost a lot less to setup the terms to keep them in their homes and PAYING on them, then the long term effect of losing their homes.

What is the long term effect?

[WNYresident]

10,000 people a day losing their homes to foreclosure.
Their fault? Probably.

But you have to look at the big picture...

It will cost a lot less to setup the terms to keep them in their homes and PAYING on them, then the long term effect of losing their homes.

WHy? OTher people may buy their homes at what the homes are really worth. They can't pay now. What is going to change?

[LHardy]

Nice response from Reynolds and typical politician style.
"I hear ya but you don't know what you're talking about."

Capitalism and free markets are designed with risk and profit as motivators.
The motivation for this too happen were the profits. Buy the consumer and the lender. Each thought they were going to benefit from the transactions.
Complicated by regulations to lend to those who could ill afford their homes.

The idea of failure for these specific lending institutions can be a boon to those who will not recieve help from this bailout. If a few 100,000 people have to take it on the chin for their poor decisions. So be it.

We already pay, out of our hard earned incomes, for the non-producers.
Now we are being asked to pay so people do not loose from their bad investments. We are too prop up and keep artificailly inflated the investment and housing market.

The fall of their prices would benefit those waiting to enter the markets. Yet as of today they have not because the markets are over valued.
This is the free market doing what is does best. It is telling the world what the market will bare and it can not bare artificially inflated prices. Hence the fall and want for a bailout.

Without the bailout some in the nation will take a hit on their 401K and/or lose their homes. We are being asked to do for the nation what NYS does for its' employees. That is for the taxpayer to make up the differance when their investments go south.

Where's mine?
This is a joke and a crime against the taxpayer.
So let's write new rules as we go, in order for those in position to be insulated from risk.

[yokes]

WHy? OTher people may buy their homes at what the homes are really worth. They can't pay now. What is going to change?

not without available money.

If the banking system collapses, which is a possibility without a bailout. (I don't like the bailout, but agree it is neccesary) funds will become scarce.

Business will not be able to expand, and many will fail because of the lack of available funding sources.

Prices will rise as services and products become more scarce.

Your debt free existance could become challanged as business' shrink to fit the available marketplace, prices increase and your income sources dry up.

Does it suck to have to bailout the system, absolutely, will it do more good than harm in the long term? IMO yes

[mesue]

10,000 people a day losing their homes to foreclosure.
Their fault? Probably.

But you have to look at the big picture...

It will cost a lot less to setup the terms to keep them in their homes and PAYING on them, then the long term effect of losing their homes.

I was under the impression that only the people defaulting on their loans were going to lose their homes. Are you saying that people who have never missed a mortgage payment are going to lose their homes as well?

[yokes]

I was under the impression that only the people defaulting on their loans were going to lose their homes. Are you saying that people who have never missed a mortgage payment are going to lose their homes as well?

eventually yes as prices rise and available capital dries up.

[stevespets]

10,000 people a day losing their homes to foreclosure. Their fault? Probably.

I believe that the majority of forclosures are directly related to the falling values of the homes that people bought. They are now faced with a mortage payment that is to high relative to the value of their home. If you are paying a 200,000 mortage on a home that is now valued at 140,000 you are in a negative equity situation and it makes sense to foreclose.

I am sure there are people that were doing speculative home buying, but I'd bet that the majority are people like you and me that just want a place to live and to build some equity.

[Save Us]

I believe that the majority of forclosures are directly related to the falling values of the homes that people bought. They are now faced with a mortage payment that is to high relative to the value of their home. If you are paying a 200,000 mortage on a home that is now valued at 140,000 you are in a negative equity situation and it makes sense to foreclose.

I am sure there are people that were doing speculative home buying, but I'd bet that the majority are people like you and me that just want a place to live and to build some equity.

your right,, if you have to live somewhere, you have to ride out the fact that like any other investment may take a dip in value,, you cant live in a stock market.

a lot of people got greedy,, let them fall!

[Dougles]

The Best advice i can give people in a time like this is to over pay your mortgage. If you have extra money that your not sure what to due with and your too scared to put it into stock, bonds or mut funds, PAY IT INTO YOUR MORTGAGE. Now this is only for those who are VERY close to retirement or people who are just TOO scared to play the market.
By over paying your Mortgage your doing 3 important things.
1. paying down debt and GAINING home equity. When the housing market begins to rise again, you will have a huge amount of equity. Additionally, if down the road you need more cash for college or a car, with higher equity, you will be able to get more on a home euqity loan typically with a better INT rate!
2. By paying down your debt and over paying, your creidt score will rise. This will allow you, if need be, to get credit much easier in a credit crunch like this.
3. By making one extra payment a year you can cut up to 7 years off a 30 year mortgage! if you have a 700 a month payment, you'll pay $15000 extra during those 23 years but will save $58,800 in payments!

[WNYresident]

How many people do you know that have no mortgage?

Quite a few... I know we don't.. .I know a few people on my road that don't either.