Massive financial bailout

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Posted by beram63

droves of people running off to ATMs to pull their money out is the worst possible thing that could happen. that was the death knell for wamu. all the media coverage scared people, they closed their accounts, and wamu went under.

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Posted by lauraandrob2009

I'd be weary of listening to Nancy Pelosi without considering all the facts. Though he's made a lot of other bozo moves, the Bush admin did raise red flags about this situation on several occasions (you need to look beyond the liberal websites to see that info) starting in April 2001.
* The '02 budget request declares that the size of mortgage giants, Fannie Mae and Freddie Mac, is 'a potential problem' because financial trouble and either one of them could 'cause strong repercussions in financial markets.'
* In 2003, the White House warning about Fannie and Freddie was upgraded to a systemic risk that could spread beyond just the housing sector.
* In fall of '03, the Bush administration was pushing Congress hard to create a new federal agency to regulate and supervise Fannie and Freddie, both government-sponsored enterprises or GSEs.

Incidentily, pushback came from Dem Congressman Barney Frank who said 'Fannie Mae and Freddie Mac are not in crisis.' Frank said the federal government should be 'encouraging Fannie and Freddie to do more to get low-income families into homes', and he believed 'too many people had a sky-is-falling mentality. '

Also of note, Sen. John McCain co-sponsored legislation pushing for regulation, delivering a speech on the Senate floor in 2006. 'For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac. And the sheer magnitude of these companies and the role they play in the housing market, the GSEs need to be reformed without delay.'

Again, the Iraq war expenses aren't helping and plenty of blame to go around but just be weary of both sides as they yap on tv - you can google sound bytes of all of these above that prove not everyone is being straightforward here.

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Posted by beram63

droves of people running off to ATMs to pull their money out is the worst possible thing that could happen. that was the death knell for wamu. all the media coverage scared people, they closed their accounts, and wamu went under.

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Posted by flairforfashion

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Posted by beram63

droves of people running off to ATMs to pull their money out is the worst possible thing that could happen. that was the death knell for wamu. all the media coverage scared people, they closed their accounts, and wamu went under.

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I agree totally. I admit- I did it with WaMu on 9/15 because I panicked BUT the mortgage dept. at WaMu was in shambles so I panicked. But, people have to leave their money in now. If they pull out money due to having no faith in the markets, this problem will escalate to a higher level.

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Posted by lauraandrob2009

gporka23 - the FDIC isn't in the biz of bailing out the bank - but it protects the shareholders - WAMU accounts are still in tact. My sisters money is there and her mortgage and it is biz as usual.

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Posted by beram63

they're expecting to put a new deal on the table wednesday. the jewish holiday makes timing a bit difficult with today's failure. hopefully the next two days don't spiral into disaster.

60% of the dem majority voted for it.
33% of the house rep voted for it.

it sounds like pelosi really blew it with her finger-pointing speech.

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Posted by abrennan01

I think that it's the people who can't add that put us in this mess. I know exactly what I bring in each month and can do basic subtraction to understand that if my mortgage is $3K but I only make $3500, I can't afford it!

Home ownership is not a right, it's a privilege for those who are financially responsible enough to take care of a home. And we as a country seem to have forgotten that over the last few years.

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Posted by abrennan01

I think that it's the people who can't add that put us in this mess. I know exactly what I bring in each month and can do basic subtraction to understand that if my mortgage is $3K but I only make $3500, I can't afford it!

Home ownership is not a right, it's a privilege for those who are financially responsible enough to take care of a home. And we as a country seem to have forgotten that over the last few years.

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Posted by beram63

i wish they's quit throwing around dumb terms like 'main street' and 'golden parachutes.'

how about the middle class? the american people? how about calling golden parachutes what they are--big payoffs made with tax dollars for top executives who created the problem.

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Posted by Espo22

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Posted by abrennan01

Yeah it would be nice if i could have that overly expensive place i really wanted but we couldnt afford it and if said we'd make it work, our lifestyle would s*ck. Forget vacations and all those things.

and since its just us two now we said we want an apt. Have fun as newlyweds going on vacations, enjoying life while still being able to afford a mortgage. Plus we would be able to save more and in the future when we both make more money and will have more money saved, and have kids then we'll look at getting something bigger.

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Espo...this is EXACTLY what FH and I did and boy am I glad we did...we were approved for an insane mortgage and realized we wanted to buy below our means (2 bedroom coop) and continue our life style....I mean Im not the type of person who could live with an insane payment over my head....

This whole mess is truly frightening.....

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Posted by curiousgeorge

Crashingggggg....DH and I were pre approved for a 470K loan 5 months ago. I almost tumble over in my chair. We make decent money but ARE YOU KIDDING ME???? 4000k a month for a house? These people had to of been really naive or just dumb!!! .I refuse to be a slave to a house. We live comfortably in our apartment and put money in the savings every week! I actually LOVEEEE our apartment, its cute, roomy and perfect for now. We are waiting this mess out....Sorry but now is NOT time to buy! I refuse to hand over 100k of our hard earned money into something that I cant sell.

People say that renting is throwing your money away...no its really not. THe amount we pay in rent would cover a years worth of property taxes for a house/electric. Yes you get a tax break...but its not enough.... that tax break that you get back will just go towards maintaining your house/fixing ect....The housing market NEEDS to go down more. By keeping our money locked into cd's our money is making more money than a house is right now....that is our investment!

To me a house isnt EVERYTHING....its really not..I dont dream about it. I would rather rent here on LI and buy a condo on the ocean in Miami to go on vacation whenever I want or retire at in 25 years. A house is NOT worth my life. Also another question......................
How is a house worth anything if you cant sell it??? .

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