Broadsheet: Housing rescue bill heads to Bush for signature

Better to write for yourself and have no public, than to write for the public and have no self. - Cyril Connolly

Sunday, July 27, 2008

Housing rescue bill heads to Bush for signature

I think it's sad that the Government has to bail out the housing crisis.

Maybe instead of bailing everyone out of situations they shouldn't have gone into in the first place, Congress will use this crisis to pass a bill to ensure personal and fiscal responsibility and accountability. Laws should be on the books regulating how much credit can be extended to someone and under what circumstances. Taking advantage of rubes who can't calculate simple interest should be a crime, and there should be limits in place for home buyers to keep them from getting in over their head.

It's sad that greed has caused this whole thing. From both sides of the table: buyers and lenders. The credit industry needs an overhaul. I think sliding interest rate loans should be outlawed. You get a fixed rate and manage it. If rates go down, you negotiate a lower fixed rate. Period.

And this bill is stuffed with pet provisions and bloat, including a nearly $4 million to lenders, but nothing to the homeowners it is designed to help.

"No matter what's wrong with it, most of the members of this Senate are going to come in and vote for it, and check the box and go home and say they did something about housing," (Represenative) DeMint said.

Well, way to go Government. Your tax dollars at work.

I saw a news report yesterday that some sleazy real estate agent helped to finance a $560,000 mortgage for a woman who made just $50,000 a year. She's now fighting foreclosure. Surprise!!! They should both be ashamed. How can something that stupid be allowed to happen in the first place?

In other news, one of the families from ABC's hit show, Extreme Home Makeover, are now fighting foreclosure on their dream home, despite the fact that the builder paid off the mortgage on the new home, and ABC gave them $100,000. How did that happen? They took out a loan on the equity of the house for $450,000 just 15 months ago and now they can't pay it back. Someone can't manage money. And if you can't manage your money - you SHOULD lose the house. Get something you can afford - like an apartment or a condo.

posted by Broadsheet @ 10:30 AM

3 Editorial Opinions:

At July 27, 2008, SJ Stone said…

simply: bring back debtors prison! i've been saying that for years. you are 100% right -- it's from outright greed. i think this whole "market correction" is good for us, and i think we deserve to suck it up and suffer a bit. it's sad, but a lot of people need to learn some lessons -- i'm learning, too, but i started a while ago.
At July 28, 2008, Alex said…

This whole mess is unfortunate. The state of the law allowed it and for sure it was shady, but we shouldn't be bailing anyone out.

Change the laws to prevent it in the future, sure. But not bail out those who didn't realize that there's no free ride and if it seems to good to be true...

It sends the message that we don't need to be accountable. Then again, this from the government that has debt issues as well.
At July 28, 2008, jwer said…

I think if you check the numbers (good luck, since the media isn't terribly interested in reporting reality) you'll find that the bulk of the people in foreclosure are ordinary people who bought a house where they had to live, then lost an income, or didn't expect fuel costs to double, or who simply didn't understand that their payment would be much higher than the monthly payment quoted on the loan documents because of property tax, hazard insurance, etc.

The fault is squarely on the banks on this one. Even speculators who were trying to game the rising market shouldn't've been given loans they clearly couldn't afford.

Fuck debtor's prison, how about corporate responsibility? Oh wait, why bother: the government will bail them out with tax revenue from the very people who are at risk of foreclosure.