Quote:
Originally Posted by gtahvit
I agree with you and DGthe3,
I just feel it's important to note that when banks feel safe they make riskier loans (sub prime) and we do this all over again. My contention is the lending market would be much more stable, and reliable, if the Gov didn't bail out the banks every time they have to pay for taking on risky borrowers. If the banks were held accountable, the same way the rest of us are when we default on a loan, then the lending market would stabilize.
Somewhat related: Notice how they aren't bailing out the borrowers, they're bailing out the banks. But the media spin is they are taking care of us by injecting the 200B... I don't think they should bail out either but what do I know.  |
but if the gov didn't bail out the banks they would all shut down and we would be putting our cash underneath our beds.
i just think the whole mess could have been avoided if they (the banks) would have
1. be more cautious about who they lent money to
2. made all homeowners get a normal loan(30 year, or 15 year). unless they were investors.
i have heard rumors of a 30 day or 60 day time frame where the banks are thinking about stopping foreclosers. that is great just make it possible for all those people to refinance there loans. i called a month ago or so i wanted to refinance my house to a 15 year from a 30 year fixed. they told me i couldn't because i was to far upside down on my house.
eventho my credit is like gold. i was shocked, upside down?? 2 years ago i had 50k in equaity, now i'm 25k upside down, because of all of the foreclosers.
i have had 4 or 5 in my neighborhood in the last 2 months. the banks that gave all these bad loans are killing the people who pay thier bills. the house nextdoor to me didn't foreclose, but it is now section 8. there is another hit on my house.
something has got to give.