Who Will Benefit From Subprime Bail Out?

CHUQ

Intersting reading.

Don't be fooled. The Bush Administration's deal with lenders to get them to freeze interest rates on some adjustable-rate subprime loans isn't really about rescuing lots of homeowners. It's mainly about buying some time for mortgage servicers, Wall Street firms and investors around the world who face a chaotic couple of years as foreclosures rise and a couple million subprime loans reset at higher rates.

Treasury Secretary Henry Paulson made that very clear Thursday afternoon. "This is a private sector initiative to deal with the volume of resets," Paulson said at a press conference following the unveiling of the plan. "You get approximately the same result as if you did it on a case-by-case basis."

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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

I consider it a bailout any time the government has to intervene because of poor lending practices.
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CHUQ · Posted: Wed Dec 12, 2007 2:32 am Post subject:

And anytime the government intervenes, that eliminates the idea of free markets and free trade.
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Jackal · Posted: Wed Dec 12, 2007 9:38 am Post subject:

I find it interesting that the government went all out to make it much more difficult for the individual to declare bankruptcy - in other words punish the individual for bad decisions but did and will do nothing to punish lending companies for making high risk loans.

They didn't used to do make loans like this. Shouldn't they be required to take the burden of their bad decisions too?
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CHUQ · Posted: Thu Dec 13, 2007 2:11 am Post subject:

I agree, but unfortunate it is never about the people themselves, it has always been about the cash and the investment. Protect companies and the economy is good.
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CHUQ · Posted: Fri Feb 01, 2008 2:46 am Post subject:

About the only good news coming out of this debacle is that the FBI, SEC and others are starting to investigate the sub-prime thing. They are looking for such stuff as insider ttrading, fix of prices, and a whole list of possible crimes. Let us just hope they do a throgouh job. I mean come on, they fire a CEO and he gets millions as a separation deal.
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