Why should he be bailed out. He has put down no money. Though his mortgage was high, he paid less than rent because he over rented. Now he is living there for free during reposession and collecting rents.

This is not an unusual story here in SoCal.

Idaho has a sales tax, state tax and vehicle licence tax based on value of vehicle along with a high real estate tax and tax assessors who are Johnney on the spot to value your home.

Realtors here continue to price homes like nothing is wrong hoping to cash in on the few unsuspecting buyers coming into the state from outside. 6% is still the norm on brokerage fees. A few will actually do an open house for the sellers and most admit that they are lucky to get a tire kicker let alone a serious looker. none think they should lower the prices. Boise has been in a boom mode for years with homes and shopping malls and commercial buildings. The new schools, fire halls, goverment buildings and shopping malls are about done. Roads in the area are being improve at record rates. Its all coming to an end here this fall for the most part. Now everyone can sit back draw their unemployment and pay their taxes and give homage to their gods

It sounds like we are no different then the rest of the country.

Jim

The NAU will be much like the EU in flavour. There were people protesting in Europe, and there still are, but you don’t see it on the mainstream news, for a reason. Most Americans still trust the mainstream media, and as long as that’s the case, the USA will be part of the NAU.

Some will want to start a civil war, but it will fail because there will be no press coverage and the coverage that does exist will make the protesters look like “domestic terrorists.”

The crash will be what Catherine Austin Fitts (see http://www.solari.com ) calls a “slow burn.” Inflation will slowly and progressively eat away at the US middle class until they are poor and powerless. All the while, the NAU will be taking away their Constitutional rights.

Rockefeller himself has publicly stated that the takeover by the international corporate banking families (aka, the UN) needs to be slow and steady, as to not raise any alarms. The mainstream press has been part of the secretive Bilderberg meetings for a couple of decades now. They will never report on what happens at those meetings of the global elites who plan our future for us, and give us the illusion of democracy.

Historically speaking, you have to remove the middle class in order to remove the power of the dissenters in a dictatorship. Make the middle class part of the poor, in other words. Turn them into serfs.

A mortgage is simply paying rent to the government or the international bankers, afterall.

If you want to understand home ownership and long-term, you now have to understand politics and global power plans that have been in the works for decades, starting with the Trilateral Commission and the Bilderberg meetings in the 1950s.

You may make money in flipping property, but you will still be transacting in US dollars that will be devaluing at an ever-increasing rate. War with Iran will step up the pace of USD inflation quite a bit, all the while the US economy will come to grinding halt.

HSBC international bank will allow you to transfer your IRA and your cash holdings into Chinese yuan currency. The yuan has been increasing in value against the USD for some time and should continue to do so as China becomes the new world superpower.

There’s one anomaly to your thinking or SSP’s irrational planning?

The foreigners have been buying American equities (mortgages too) like crazy lately…if the dollar crashes, we stop buying Honda and Mercedes too…that would hit them like a quick punch in the stomache.

If the foreigners sell all the Hedge Hog funds, same result. Dollar crashes.

Another thing the brainless SPP board failed to consider about themselves, these folks have no backbone, they just go after short-term profit, greed and they’re afraid of good old Yankee confrontation [that's why they're secret and ambiguous] by loyal Americans, police and soldiers.

If there was ever a NAU, believe me, there’s gonna be uncontrolled masses of pitch forks and torches in Canada and America.

Mexico has all the debt and they’re more repressed by their gun-toting drug Mafia government too, so they’ll cower with the SPP chickens too, when all Hades breaks loose in Canada/America, if this NAU nightmare becomes a reality!

This USD devaluation is happening through massive war spending and now also through mortgage lender bailouts. Those who have been voting for pro-war politicians who are members of the Council on Foreign Relations (CFR) have been effectively brainwashed by the mainstream media. The CFR is pro-North American Union and pro-war spending for corporate profit.

Nearly all of the 2008 presidential candidates are active CFR members. Party lines are a fabricated illusion to keep you distracted. If you still believe there’s a different between dems and repubs, you have been brainwashed. Ron Paul and Dennis Kucinich are not CFR members, however. Ron Paul is publicly against the North American Union and the Fed’s intentional crash of the US dollar.

Vote for Ron Paul in 2008!!! Get rid of the pro-CFR anti-American politicians who seek to profit from corporate fascism and the loss of US Constitutional power via a new UN constitution (just like what’s happening now in the European Union, where the UN has successfully come into power).

You did know what you were voting for, when the Bush’s were talking about the New World Order, didn’t you?

The US housing bubble was planned and is necessary for the crash of the US dollar.

most people bought (at least the 2/28 arms) because they envied their friends who made globs of equity…

it’s pure greed and keeping up with the Jones’s that got people into the trap…

My wife kept asking why we couldn’t get twice the house when her friend who makes half we do did…

I showed her this blog and that helped… this was 14 mos ago…

There should be a bailout, in that all arms should reset to the LIBOR rate with no index margin… that I can support…

but no debt should be forgiven… you borrowed it, you’re responsible..

you go to a casino and if you lose they don’t give your money back…

Bush’s current plan actually sounds good… help people refi and investigate fraud… I want to see appraisers and LO’s see the inside of a jail cell…

Bush should send a strong signal by building a new detention facility in every state… and fill it with mortgage cheats…. I can support my taxes going to that purpose…

That’s madness. Are you suggesting…no it can’t be true. Well, maybe.

are you suggesting that during bubbles people do things just because everyone else is? It’s crazy, but maybe, just maybe it might be true.

Except when we don’t.
In the late 90’s, during the dot.com boom when salaries and stock options were booming, I was only able to convince one couple to buy in CA. When I went back in the spring, all the others (that I had tried to convince before) had bought within the last 2 years.

The government is venturing into territory that can become slippery since the US is a mostly free market society. I see this as a positve, could be the optimist i me, and just hope that is not some political ploy to get the republicans on the publics good graces entering election year.

“The number of millionaires around the world has almost doubled in the past 10 years to 8.7 million, according to the World Wealth Report, compiled by the Wall Street firm Merrill Lynch. Their combined financial wealth is $33.3 trillion–more than the value of all the goods and services produced last year in every economy in the world except the U.S. Their wealth dwarfs–by 10 times at least–the annual income of half the world’s population, which lives on $2 a day or less”.

According to the Economic Policy Institute, http://www.epinet.org/, since 2001, real hourly wages in the U.S. rose only 3% for the middle-income worker, with none of this historically small progress occurring after 2003.

My opposition to a bailout come’s form the conviction that inflation hurts the poor more than the rich. The rich are just less rich. The poor and middle income worker suffers. Bill Gates could give a "chocolate" if we inflate our way out of the housing crises, but the hundred of millions of people with household incomes less than 50,000 a year do. If the economy tanks today many people will suffer. If we inflate are way to the economic benefit of a few the future will be far hard on the people least able to deal with it.

Better to pay the bill today.

The sad results of Hoover’s efforts are of course history. Businesses, since they couldn’t cut wages, simply stopped hiring people. Banks, since they couldn’t foreclose on delinquent loans, simply stopped making new loans. Hoover exhausted himself in the age-old folly of trying to bypass the laws of economics, which are the laws of human nature.

Now consider that this same Sisyphean task, which has proven too much for people of (albeit flawed) genius throughout the ages, from John Law to Marx to Hoover, is to be taken up by the guy who brought you the Iraq war and the Katrina bailout, and ask yourself how much better he’s likely to do.

http://cosmos.bcst.yahoo.com/up/player/popup/?rn=49750&cl=3918722&ch=68276&src=news

Am I missing something here?

The Bush plan could save maybe 80,000 homes through the FHA.

The national debt runs something like 8.9 trillion dollars.

I’ve seen estimates that the housing market is leveraged at about 11 trillion dollars that would be about 95% of GDP.

Lets say that only 2 trillion in mortgages fail in the next five years and the Irag war drags on for another 10 to fifteen years at 250 billion a year with gas in the near future hitting 4 to 5 dollars a gallon.

It’s not just a housing market. No government bailout can fix a broken system. Everything is connected. If you print money all prices are inflated across the board not just home prices. Printing money will also mean raising taxs because it inflates prices for the cost of governing.

At some point you have to start paying down this growing federal debt that in five years will top 12 to 15 trillion dollars turning the US dollar into another Peso.

And the snowball gets bigger and bigger and bigger.

You point out a number of other policies that I imagine many of the people on this blog oppose. It just so happens this is a housing blog however and not a New Orleans blog, an Iraq War blog, or a Sicko blog.

But I’ll weigh in; I’m with you on one out of three and undecided on the other two. The Iraq war is just to get oil. New Orleans is similar to housing, in that I feel bad for the people who got hurt, but on the other hand if you choose to live below sea level in hurricane alley you should consider what might happen. It’s kind of like if a really big earthquake hit Seattle. It’s awful, but we should all accept that it’s the risk we are taking to live here. As for health care, I believe there is still considerable public debate that needs to take place to determine whether public health solutions are better than private solutions. The HMO solution clearly is among the suckiest, but it’s not the only private options.

Dear Senator Cantwell,

I want to go on record with both you and Senator Murray as vehemently opposed to any type of bail-out for the housing situation so many Americans find themselves in.

The reasons are many-fold, but to start: this does nothing but defer and subdue the needed effect of economic law to ‘ground’ people (both borrowers and creditors) to the reality of poor decisions and (’extreme,’ in this case) over-extension/over-usage of credit.

I have avoided to the best of my ability investments related to this phenomenon in any way, and have put-off the purchase of my first home because of the wrecklessness in the housing markets we’ve seen in the past few years.

On a moral level, using my tax dollars, faithfully paid and maintained year after year, to in effect underwrite someone else who should have been making the same ’sacrifice’ as myself (renting vs. owning) – is the ultimate in hypocrisy and taxation mis-representation.

By extending this extremely skewed logic, instead of navigating myself in a free-market system, I should now in my own best interests, go out and purchase as much home as I can negotiate. And believe me, despite the credit market’s deterioration in the past several weeks, institutions are salivating for well-managed individuals like me with no debt, significant savings and excellent clean credit.

In this manner, I can join the ranks of the ‘well-heeled’ in our country, who measure their prosperity by their indebtedness. This bail-out action removes any incentive for personal responsibility
and prudent financial conduct on the part of individuals.

When and where will this end? Would the government like to re-pay the dollars I lost in the dot-com correction of several years ago? That event profoundly affected my life and economic well-being for many years, and it’s only recently that I’ve in effect ‘caught-up’ to where I would have been had things gone differently. But I was willing to swallow my medicine and learn from my mistakes – homeowners dipossessed of their new homes will not fare any differently than I did. They’ll have to re-prioritize their lives and carry-on. After all, the house was never really their’s in the first place, and they’ll return to their renters’ status, appropriately.

By the way, I tend to vote very liberal and actually support higher taxes to clean-up our national mess, as that is the only real salient path to pursue, albeit an unpopular one. But those higher taxes need to be spent on our national debt structure, to re-assert American economic primacy on a global level, not to aid and assist individual floundering new-home owners.

Thank you for your time and consideration,
Respectfully,
-Andrew XXXX

The payments are still going to be substantially more per month going from any adjustable rate loan or interest only option loan to a 30,40 or 50 year fixed rate loan on a 500,000 to $1,000,000+ that is completely amortized. As far as the tax break, only consumers who are actually foreclosed on will get that tax break of not being taxed, but will not feel that until the following year’s tax filing. This actually reduces the tax revenue base collected for the government, since they would be recipient on the tax income.With a lower tax base on over 100,000 people being forgiven on the debt with no tax consequence, the federal government will have to increase taxes in the future to make up for lost tax revenues.

Many people will just walk away from properties that are now worth less. It is like being upside down on a car loan but the loan is 50-100 times bigger. That is just not a good feeling.

One last thing about the possible bailout, it would be a slow process of implementation that people who want to keep their houses while looking for relief from the government may be evicted before the program is put into effect.

Yep. The point of any “bailout” is to keep the serfs in debt bondage. The ARM rape turned out to be a bit much and there’s a danger of the hoi polloi saying “kiss my ass” and walking away, so the PTB need to turn the temp down a bit to keep the frog boiling happily.

If we let the subprimes rot the stock market equity funds and don’t bail ‘em out and there’s no stock market collapse, at least not bad enough to cause a depression, we enter a recession. Banks tighten credit requirements up or go broke, causing real estate to plummet because no one qualifies. The dollar falls in value, federal bonds collapse and the world moves their money out of America.

What will savings rates in America do if that happens?

Sky-rocket Matt. Then what will real estate do? Plummet some more Matt….

The key, it doesn’t get so bad that we enter a depression with a stock market collapse too. The good thing [it may be a bad thing too] about American stocks, unless the foreigners sell, the equities are all getting bought out by foreigners and the manufaturing base for US stocks is overseas. It may insulate the stocks from a depression, the foreigners don’t want to go down too, with the American Titanic.

That’ll teach ‘em!

Alright, I take it all back, what said in the previous post. He IS planning on a bailout. The guy’s an idiot, why shouldn’t he reward idiocy?… Basically he’ll keep the subrimers in indentured servitude so Wall Street can recieve its IV drip to keep all those Hedge Fund bastards in the millions…

Welcome to America, where stupidity is rewarded and everything’s done for show.

So…GWB will save all the bible belt states and anywhere else there are packs of religious conservatives and by the time it gets to Seattle the bailout will have long since passed and been used up in places like FL, NV, AZ and all the other places.

You guys had the best MSM cheerleaders up here and were pumped by every other publication in the country to get people up here to “invest” in Seattle RE.

Somehow I doubt that Seattle will see much bail-out help .

just my 2c fwiw

Geez, cold in Hell. I actually agree with the two-bit moron n’ Cheif for once…

Although, the GOP’s been screwing working families for years, I guess there’s no discretion when it comes to stupid working families who signed their life away to the company store (aka toxic loans)…