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Obama Administration To Extend Mortgage-Free Living For America's Unemployed To One Year

Tyler Durden's picture





 

Last week it was discovered that the means by which various big banks are dealing with the Option ARM cliff is by enforcing outright mortgage debt forgiveness, in some cases as large as 50% of the total principal.
Which is why it should come as no surprise that the administration, in
dealing with the lack of an unemployment cliff, has decided to extend foreclosure-free living for unemployed homeowners from a few months to a year. From USA Today: "The
administration today will announce that two programs providing
unemployed homeowners a few months' forbearance on their mortgages will
be extended to 12 months, said three administration officials speaking
anonymously because the program has not been announced. Thousands of
homeowners could benefit from the additional time, although not all
jobless homeowners will be eligible. The action is being taken as part
of the administration's effort to help prevent foreclosures while
unemployment remains above 9% and the economy struggles to rebound." What would be great if in addition to such openly
socialist policies the administration would enforce the implementation
of sinking funds for said unemployed workers, who instead of taking
unemployment benefits from the government and converting it into less
than edible iPads, would actually set aside money for that eventual
mortgage payment. Of course that will never happen: after all why
redirect freshly issued fiat from being recycled into the economy and do the responsible thing when nobody in America expects to pay their mortgage
payments ever again. And some wonder why retail sales in June came as
blistering as they did. Simple: when the US consumer no longer has to
spend any money on the biggest traditional use of capital, housing, the
alternative is everything else. And for those attempting to figure out just how this
is deflationary (for everything but housing of course, but that's one
deflation that will only hit the pocket of Uncle Sam), we would kindly request an explanation as well when someone has an answer.

More:

The Federal Housing Administration began offering four months of mortgage relief to unemployed homeowners nearly a decade ago. Banks and mortgage brokers participating in the program must comply with the new standard. The Home Affordable Modification Program has been offering three months of relief to the unemployed since last year. Those who service mortgages under the program are expected to follow its voluntary guidelines.

To qualify for mortgage forbearance, unemployed people must be looking for work. Those who can afford to pay a portion of their loans must do so.

Skeptics about this program should shut up: it is a "win-win" for everyone. Because in Obama-style economics zero sum is no longer relevant.

The revised programs are intended to be a win-win for borrowers and banks, which can avoid having more homes go into foreclosure by giving borrowers more time to pay.

 


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Thu, 07/07/2011 - 10:34 | Link to Comment Stuck on Zero
Stuck on Zero's picture

A bit of moral hazard but that should not stop the advance of Socialism.

Thu, 07/07/2011 - 10:39 | Link to Comment MarketTruth
MarketTruth's picture

ITS TRUE!!!!!!!!!!

Obama Is Going To Pay For My Gas And Mortgage!!!

http://www.youtube.com/watch?v=P36x8rTb3jI

Thu, 07/07/2011 - 11:00 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

It isan Obamanation, on a glide path to global equalization. 

Soon, we will all be equal with Nigerian Goatherds.

Thu, 07/07/2011 - 11:00 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Run by the Obamonster.  Speaking of monsters, that comment he made as a senator about "a failure of leadership" (by raising the debt), is really going to bite him in the ass.

Thu, 07/07/2011 - 11:04 | Link to Comment TheTmfreak
TheTmfreak's picture

Don't make definitives about what should obviously be true. (about it biting him in the ass). I have certainly learned (more in the last 3 years than ever in my entire life) that regardless of the OVERWHELMING evidence to suggest somebody is a total pos, people will still like them and ignore it anyway. I saw a black woman the other day with an obama shirt on. Why exactly? Rooting for your guy? What exactly is "your guy" all about other than being "black"?

There are times when you have to take a step back and say you know... there are some dumb truly ignorant fucking people in this world.

Thu, 07/07/2011 - 11:10 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

There are truly some real pieces of work out there.  Obama is not one of them.  He has the gift of eloquant speech.  It will be his undoing when Republicans play the "Failure of leadership in raising the debt" speech over and over again.  Obama will be caught talking out of both sides of his mouth like the slick politician he is.  It could very well be his undoing.

Thu, 07/07/2011 - 11:29 | Link to Comment 66Sexy
66Sexy's picture

BTFD this is F'ing bullish.

All that money wasted paying banker tribute can now go to the real economy. Corporations can still dictate inflation and raise their bottom lines. The money flows from bankers to corporations (same folks) back to the bankers through bailouts.

Big banks are TBTF... we've already established that. The financial industry IS the government now, and the corporations can freely loot it. It is clear the banks are being thrown to the wolves, becasue they cant fail. Hell, now it's legal.

More folks should just default, stop working altogether (so they dont have to pay the taxes that will be needed for the banker bailouts), and spend spend spend! Its the new economy.. a bit socialist, but fuck it, it puts everything off until mid 2012.

Thu, 07/07/2011 - 11:29 | Link to Comment dark pools of soros
dark pools of soros's picture

the bankers don't care since they already flipped them into crap securities and dealt them away to the FED..  who will shove them into pension funds or just let them rot..  who cares..

Thu, 07/07/2011 - 11:48 | Link to Comment That Peak Oil Guy
That Peak Oil Guy's picture

I think I speak for all of you when I say, this is fucking nuts!

TPOG

Thu, 07/07/2011 - 11:44 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

 " He has the gift of eloquant speech".  Bullshit I hear that crap all the time. He sounds just like some jive talkin punk , from ford heights,

Thu, 07/07/2011 - 10:39 | Link to Comment docj
docj's picture

Indeed. I've never in my life felt more foolish for 1) buying as much house as I needed but less house than I could afford and 2) making sure my mortgage to a TBTF bank was not only current but paid-ahead a couple of months.

Pity there's no free give-aways for me, eh?

Thu, 07/07/2011 - 10:42 | Link to Comment Ray1968
Ray1968's picture

You are probably not in his voting constituency. This is a payoff. Chicago politics at its best.

Thu, 07/07/2011 - 10:46 | Link to Comment docj
docj's picture

You're right - I'm not.

Swell.

Thu, 07/07/2011 - 11:05 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

At the end of the day, your side of the sidewalk of life is pretty clean.  Trying to control the bad behaviour in others is a fools errand.  You are an upstanding citizen, be happy with that.

Thu, 07/07/2011 - 11:32 | Link to Comment dark pools of soros
dark pools of soros's picture

his deadbeat neighbor probably has plenty of time and money to care for a much better lawn..  make sure you harvest japanese beetles in yours so you can attack anything he has time to nurture...

 

 

Thu, 07/07/2011 - 11:04 | Link to Comment Ray Elliott
Ray Elliott's picture

Sir:  Are you suggesting that the President of the United States is involved in skullduggery?

Thu, 07/07/2011 - 10:59 | Link to Comment Dantzler
Dantzler's picture

I hear you, docj.

Personally I look forward to being able to redirect my mortgage payment cash flow towards more productive things once I pay it off ahead of schedule. I'm thinking a nanobrewery for starters.

Even if other people are getting free shit, I only have to look at myself in the mirror each morning.

Thu, 07/07/2011 - 13:09 | Link to Comment knowless
Thu, 07/07/2011 - 11:06 | Link to Comment karzai_luver
karzai_luver's picture

you are nuts if you are paying ahead a couple of months.

THere are better uses of that money.

 

That you still have a mortgag with a TBTF bank brands you as just another

sheep anyway.

Bitch bitch bitch , but no action.

 

Thu, 07/07/2011 - 11:22 | Link to Comment Dantzler
Dantzler's picture

Get bent, kl.

One has no control over what happens to a mortgage after closing so even those who went with a non-TBTF can have their mortgage sold to one.

Furthermore, if one starts with a 30 year @ 6.5% and through refinancing goes to a 15 year @ 3.7%, the interest paid to the bank goes from $300k to under $80k on a $200k principle (even less if accellerated). That is action right there.

Each chooses his or her own path - what are YOU doing other than snivelling in the comments section?

Thu, 07/07/2011 - 11:28 | Link to Comment cartonero
cartonero's picture

++, kl

I'm also amused by posters who point out how manipulated the markets are and then go on and on about how they're going to play them.  Just get out.  The only way to win is to not play the game.

 

Thu, 07/07/2011 - 12:01 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Other than gold and silver, just holding cash is a losing bet. Costs go up on everything, the dollar falls.

I don't care if a new flat screen costs $200 less than last year, I care how much my housing and food bills are. Savers and people just getting by are screwed.

Thu, 07/07/2011 - 11:49 | Link to Comment docj
docj's picture

Well, not that I feel the need to justify how I handle my finances, but here you go. I'm a year ahead on my 15-year mortgage, though now I'm paying the minimum and, as you suggest, directing the extra to more productive purposes. My payments are now roughly 70% principal, so if I out of principle want to dump my TBTF mortgage and go with a non-TBTF bank (good luck finding one of them, by the way) I reset back to paying roughly 50-50 prinicpal and interest.

In other words, I'm paying myself back now. Citi has already gotten about 80% of what they're going to get out of me at this point.

Go troll somewhere else.

Thu, 07/07/2011 - 21:08 | Link to Comment Prometheus418
Prometheus418's picture

Don't be a dolt.  

I bought my house when I was 23 years old, and do not have the money to just pay it off whenever I feel like it.  The only options right now are to keep on plugging away, or default.  

I view default in the same light as leverage- TANSTAAFL.  Go ahead and stop your payments if you like, but don't come bitching if it doesn't work out the way you had hoped.  Lots of silver longs got scalped buying with leverage in May- I still got my physical, and it's all paid for.

Guarantee you when the time comes, I'll be right on the front lines- but the time isn't here yet, and despite the intellectual view on it, I'd rather it never comes.  Anyone lusting for a fistful o' silver dollars and a sixgun needs a brain-check.  If it has to happen, and I think it does, it will ugly and horrifying.  We will *not* be telling our grandchildren stories about it, and most of us will be dead.

That alone makes kicking the can somewhat worthwhile, so long as that behavior comes with a end date.  While the sun is still up, I'll keep stacking, canning and reloading.

Fri, 07/08/2011 - 05:41 | Link to Comment LudwigVon
LudwigVon's picture

I still got my physical, and it's all paid for.

I don't understand? Silver is money. You mean you exchanged some fed dollars for some physical (money).

Thu, 07/07/2011 - 11:36 | Link to Comment 66Sexy
66Sexy's picture

"If its the right thing to do, you gonna lose"

"The foundation of every human relationship? If you aint takin', then you gettin' took."

Page 661, Obama Administration Code of Ethics.

Thu, 07/07/2011 - 12:54 | Link to Comment legal eagle
legal eagle's picture

The US is just backasswards.  Yes, those of us who are current on our mortgages have just one more reason to tell them to fuck off and stop paying.  The government and banks caused the bubble in real estate, not me. Why should I continue to ride the value of my real estate down to zero and pay for a house when the government is giving my neighbors theirs for nothing?

 

Thu, 07/07/2011 - 15:59 | Link to Comment I Got Worms
I Got Worms's picture

I rent. I wonder how long before my shit would be sitting in the front lawn if I fell behind. Would the Long Legged Mack Daddy pay my rent if I hit a rough patch, or just rented in a nicer neighborhood than I could afford? Fuck me. Maybe the New Madrid fault line does need to open up and swallow this shell of a great country, and leave it back to the critters.

Thu, 07/07/2011 - 11:26 | Link to Comment riley martini
riley martini's picture

 I don't think it advances anything except the can . Kick the can and paper over the fraud ,theft and general corruption .

Thu, 07/07/2011 - 11:41 | Link to Comment Weisbrot
Weisbrot's picture

 

reward the corrupt (bailouts)

reward the incometent (bailouts)

reward the stupid (bailouts)

penalize those who do the right thing (tax & mortgage payers)

 

isnt that the road to hell?

 

USSA is on the way................

 

 

 

Thu, 07/07/2011 - 13:41 | Link to Comment Popo
Popo's picture

Further proof that Obama is completely opposed to affordable housing.

Thu, 07/07/2011 - 10:34 | Link to Comment buzzsaw99
buzzsaw99's picture

Loser preznit trying to buy an election by siding with deadbeat grifter-losers. Pitiful.

Thu, 07/07/2011 - 10:37 | Link to Comment trav7777
trav7777's picture

entire blocs of them are locked up in his corner.  Obama goin pay mah mortgage Obama gonna pay for mah gayus

Thu, 07/07/2011 - 10:50 | Link to Comment Conrad Murray
Conrad Murray's picture

None of this should come as a surprise. One just had to understand what Obarry believes: http://www.youtube.com/watch?v=xcXFxbx1Y4M

Thu, 07/07/2011 - 11:52 | Link to Comment Max Fischer
Max Fischer's picture

Ok, so you (and many others) are implying that Obama is guilty of instituting policies that favor blacks and the down-trodden, but this seems to contradict nearly everything that's written by the doomer libertarian hillbillies in the ZH comments section on a daily basis. Every day, the ZH hillbillies make disparaging comments accusing Obama of being just another puppet for the bankers and plutocrats.  How many times have we read that Obama = Bush = Clinton = Bush = a totally unfair, oligarchical society that favors the rich at the expense of everyone else.....

Even Cornel West criticizes Obama for not caring about black people: “… He doesn’t care about the Black poor: The evidence is overwhelming! … His policies [a]re racist in effect and consequence and especially classist in terms of generating misery among poor people, disproportionately Black and Brown. … The Obama Administration seems to have very little concern about poor people and their social misery: Look at the policies vis-a-vis Wall Street...."

Yet, here you (and others) are, implying the exact opposite: that Obama's policies favor blacks.  Just which policies exactly are you referring to?

Libertarians: We hate everyone!

- Max Fisher, Civis Mundi 

Thu, 07/07/2011 - 11:59 | Link to Comment That Peak Oil Guy
That Peak Oil Guy's picture

Approaching election season, have to pander to the constituents.  There is probably some way this is still good for the banks as well.

TPOG

Thu, 07/07/2011 - 12:08 | Link to Comment whstlblwr
whstlblwr's picture

Exactly, you are right, Obama policies favor elite (bail out Wall Street, who now take over country) and chronic welfare (people who take advantage of system).

His policy favor those to manipulate and take advantage, not honest US workers, savers. Definitely Not savers or traditional view of capitalism.

Okay ZH community. We must elect Ron Paul. I hold my nose, but he bring most of change we want. Abortion budget piss me off. He libertarian but want to tell woman what to do with body? WTF?

New poll in Texas show him beating Perry. Now media ignore him, elite scared so need make sure he covered.

Thu, 07/07/2011 - 12:10 | Link to Comment Max Fischer
Max Fischer's picture

....honest US workers....

Like teachers, policemen, firefighters, etc.?  If memory serves correct, the ZH libertarians hate them, too. Or are you talking about blue collar manufacturing jobs like the auto industry?  Nope.  ZH libertarians hate them, too. Private unions, public unions...doesn't matter.   

Hillbilly libertarians hate everyone: The rich. The poor. The owners. The laborers. Teachers. Firefighters. Police. The entire military industrial complex.... just about fucking everyone.  

Libertarians:  We hate everyone!  

- Max Fisher, Civis Mundi


Thu, 07/07/2011 - 12:16 | Link to Comment whstlblwr
whstlblwr's picture

I not aware that here. There are policemen and firefighters that post here. Problem of auto industry is auto BAILOUT maybe it need fail to make room for better business. Have you seen crap GM car, pure crap.

But sound like you like to keep bailout coming for you. Argument weak with calling names, who cares about hillbilly, gay, Jew, black, Muslim, Catholic? Point is this is bailout nation. Without sucking to government tit can you survive?

Thu, 07/07/2011 - 14:09 | Link to Comment FinalCollapse
FinalCollapse's picture

Fuck off. It doesn't matter dem/rep/libertarian/left/right/black/white/pink, etc. 

We need someone with balls, to stand for the people who elected him, and put all financial criminals behind bars, with Bubba in the same cell.

Obama is not. No balls, no brains, no integrity. Big Zero. He is like the 007, with '7' lost.

 

 

 

Thu, 07/07/2011 - 15:37 | Link to Comment Hacked Economy
Hacked Economy's picture

Hey Max,

I'm conservative with a mild libertarian bent.

I destest the teacher union bosses, but not the teachers.

I detest the public service union bosses, but not the firefighters or police officers.

I detest those who use their wealth to control others, not those who are simply wealthy.

I detest those who are able-bodied and yet sit on their asses and live off of welfare, not those who are genuinely poor and are trying to improve themselves.

 

And I detest morons who come here and spew comments that show their own hatred...of Libertarians in your case.

Get a life.  Only two weeks into your Fight Club membership, and you're already actively making enemies here.  Not too smart.

Thu, 07/07/2011 - 21:13 | Link to Comment Prometheus418
Prometheus418's picture

I'm a libertarian, and I don't hate anyone.  In fact, I think everyone is more or less evenly equipped to handle their own business without me poking my nose in it.

It's when you want to control others, and they won't comply, that you learn to hate.  Don't believe it?  Ask a seasoned social worker what they think of their "clients."

Thu, 07/07/2011 - 12:11 | Link to Comment Rainman
Rainman's picture

Here is more gasoline for fury....the billion dollar backstop....another failure in the making.

 http://www.washingtonpost.com/business/economy/hud-to-give-away-1-billion-to-struggling-homeowners/2011/06/30/gHQAbbgtxH_story.html

Thu, 07/07/2011 - 12:18 | Link to Comment Max Fischer
Max Fischer's picture

We must elect Ron Paul. I hold my nose, but he bring most of change we want.....

Do you realize how pathetically hilarious this is?  Libertarians supposedly believe in freedom from the government, yet you're all too lazy to fight for it yourselves. You want a "different" politician to hand you your illusion of freedom on a silver platter, wrapped with a red bow.   

LOL

If you were true libertarians, truly believing in your own freedom, you wouldn't hang your hopes on another politician to give it to you. 

PATHETIC!

 

- Max Fischer, Civis Mundi

Thu, 07/07/2011 - 12:29 | Link to Comment whstlblwr
whstlblwr's picture

Not anarchist. This is definition of libertarian,you not know what talking about.

Libertarianism is a political philosophy that upholds individual liberty, especially freedom of expression and action.[1] Libertarianism includes diverse beliefs and organizations, all advocating minimization of the state and sharing the goal of maximizing individual liberty and freedom.

I mostly past Republican. Not now. My wife Obama past is voting Ron Paul too.

We have election system, we use it. What you do?

Thu, 07/07/2011 - 15:44 | Link to Comment Hacked Economy
Hacked Economy's picture

Hmmm.  Your English needs improvement, but your statement is correct.  I agree.

+1!

Thu, 07/07/2011 - 12:24 | Link to Comment BigJim
BigJim's picture

If you were true libertarians, truly believing in your own freedom...

Look who knows so much!

Thu, 07/07/2011 - 14:12 | Link to Comment RockyRacoon
RockyRacoon's picture

He libertarian but want to tell woman what to do with body?

You are correct in one aspect only, he does not favor abortion.   However, he does not advocate a governmental role in the decisions.   It should be left to each State to decide.  He is a medical doctor and knows the mechanics of the situation.   I forget how many babies he says he has delivered.   I am personally in favor of women/doctors doing whatever the hell they want, but I'll go along with the State's Rights concept wholeheartedly.

Thu, 07/07/2011 - 15:42 | Link to Comment Hacked Economy
Hacked Economy's picture

True, Rocky.

I'm solidly pro-life, and I believe the Fed needs to get out of the abortion business.  Such decisions need to be handled by the States.  If you're pro-abortion, then you move to a state that allows it.  If you're pro-life, then you move to a state that does not. 

Simple.

Thu, 07/07/2011 - 15:50 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I'm solidly pro-life, and I believe the Fed needs to get out of the abortion business.

I'm assuming you mean Federal Govt and not the Federal Reserve? Just checking because around here "Fed" usually means the Federal Reserve.

Thu, 07/07/2011 - 16:42 | Link to Comment Hacked Economy
Hacked Economy's picture

Thank you for the heads-up.  I know the difference, but I sometimes forget that I am speaking with a group of people who do know it as well, so I need to clarify for this audience.

The Feds.

The goons.

The politicians.

The people who live thousands of miles away from me, yet dictate an ever-increasing portion of my life because they feel they "must" come out with new laws every year to make themselves feel like they're actually working.

Fri, 07/08/2011 - 00:19 | Link to Comment RockyRacoon
RockyRacoon's picture

The Terri Schiavo case

really opened my eyes!

The bastards convened to meddle in business that was not theirs.

Thu, 07/07/2011 - 14:29 | Link to Comment mahalopamala
mahalopamala's picture

This Libertarian does not hate.  Hate is a waste of time. I am much more concerned about making sure my motives and actions line up with my beliefs.  My definition of freedom is that I can exercise my freewill and make sure that in doing so, I do not harm others.  If more people believed that, we would all benefit.  Let's not keep score in an endless game of "king of the hill".

Thu, 07/07/2011 - 10:55 | Link to Comment sheeple2012
sheeple2012's picture

gotta get long grape soda here, maybe COT and whoever makes Welch's?

Thu, 07/07/2011 - 11:09 | Link to Comment GolfHatesMe
GolfHatesMe's picture

+1000 very effin funny!

Thu, 07/07/2011 - 11:31 | Link to Comment LFMayor
LFMayor's picture

these parts, if you go to Burger King, it's oran.  Gimme dat oran drank.

Thu, 07/07/2011 - 10:41 | Link to Comment SheepDog-One
SheepDog-One's picture

Funny part is, deadbeats never make it to the polls on election day, always sleeping off the screwtop wine and crack hangovers till 7 pm.

Thu, 07/07/2011 - 10:48 | Link to Comment AnAnonymous
AnAnonymous's picture

Funny part is, deadbeats never make it to the polls on election day, always sleeping off the screwtop wine and crack hangovers till 7 pm.

 

True but do not make it too public. US citizens love their democracy propaganda stuff, majority voting themselves free gifts and stuff...

Very likely, the Obama measures wont address people who vote, or address people whose vote is already captive.

But dont disturb the US world order as it is perceived by US citizens. They love so much their cocoon of duplicity. Facts would be too hard on them.

Thu, 07/07/2011 - 10:49 | Link to Comment Silver Dreamer
Silver Dreamer's picture

Just wait.  We'll have online voting soon enough.  The lazy bastards will not even have to get up off their asses to vote for their sugar daddy.

Thu, 07/07/2011 - 10:53 | Link to Comment Mad Cow
Mad Cow's picture

That assumes computer literacy. Better to put a red and blue button on a TV remote.

Thu, 07/07/2011 - 10:55 | Link to Comment TheTmfreak
TheTmfreak's picture

I think they have an app for that. Or they will. God knows they have ipods.

Thu, 07/07/2011 - 10:58 | Link to Comment JohnG
JohnG's picture

That will get hacked instantly. :)

Thu, 07/07/2011 - 11:02 | Link to Comment Bob Paulson
Bob Paulson's picture

I think that is the intention :)

Thu, 07/07/2011 - 11:22 | Link to Comment JohnG
JohnG's picture

Then I'll vote 500 million times, as if it mattered.

Thu, 07/07/2011 - 11:04 | Link to Comment Silver Dreamer
Silver Dreamer's picture

...and electronic voting machines are not already?  ;-)

Thu, 07/07/2011 - 11:09 | Link to Comment ibjamming
ibjamming's picture

Or just make it easier to have the election their way...

Thu, 07/07/2011 - 11:03 | Link to Comment Bastiat
Bastiat's picture

Votes will be "hedonically adjusted."

Thu, 07/07/2011 - 11:07 | Link to Comment karzai_luver
karzai_luver's picture

either voting doesn't matter or the prior voters were ALL imbeciles.

too bad soo sad.

 

Thu, 07/07/2011 - 10:35 | Link to Comment MachoMan
MachoMan's picture

Hey waldo, what about everyone else?  If we bark louder, do we get more table scraps?

Thu, 07/07/2011 - 10:36 | Link to Comment Bananamerican
Bananamerican's picture

what's the best estimate of how many are hitting this lotto?-a renter

Thu, 07/07/2011 - 10:36 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Hey, what's fair is fair.  Banks don't have to mark down their holdings of residential mortgages and residents in said mortgages don't have to pay for them.  Moral hazard legalized bitchez.

Thu, 07/07/2011 - 10:37 | Link to Comment TheTmfreak
TheTmfreak's picture

You said it. Though far from what I would call it fair, I'd rather just call it bullshit and pretending.

Thu, 07/07/2011 - 10:44 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

The question I have is when can I pretend?  I have been known to bullshit, but haven't played pretend in about 4 years.  I yearn for the days of ignorance.  Back in the day I didn't know I was slowly being strangled financially and all was well in my world, at least in my mind.

Thu, 07/07/2011 - 10:46 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I always thought the legislative branch legislated?  A good dictator gives out scraps to the people in an attempt of appeasement.  Good Dictator Obama - good boy.  You such a good boy.

Thu, 07/07/2011 - 10:50 | Link to Comment AnAnonymous
AnAnonymous's picture

A good dictator gives out scraps to the people in an attempt of appeasement. 

 

The US has a  long history of offering gifts to its citizenry. Started on its inception...

Thu, 07/07/2011 - 11:29 | Link to Comment Boxed Merlot
Boxed Merlot's picture

Banks don't have to mark down their holdings...

 

You said it...

 

Bingo.  This has nothing to do with the social upheaval of the US traditional way of life.  This is the NWO.  It's just getting fleshed out in your neighborhood.  BASEL's a wonderful thing, don't you think?

Thu, 07/07/2011 - 10:36 | Link to Comment TheTmfreak
TheTmfreak's picture

Can we ask what will be the unintended consequences or will we just be content with whatever comes our way?

Thu, 07/07/2011 - 10:39 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

When I can stop paying for my 30 year 6% under-water mortgage that I have been in for 5 years?  Hmmmmm?  I still have a job, income has increased nominally, credit cards have been paid off, and auto loans about done, 401K is gone and converted to silver and gold for both me and my wife, 3 month food and water supply, plenty of ammo for my guns, no bank account other than checking - do I qualify?

Thu, 07/07/2011 - 10:46 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

You don't qualify. Only incompetence will be sudsidized here.

Well there goes the last of the savings and work ethic...

Thu, 07/07/2011 - 21:34 | Link to Comment Prometheus418
Prometheus418's picture

Nah- Bullshit and dooming.

Since things have started the most recent slide, I've worked harder and saved more.  True, the savings are in metal form, but it was still a spur to save.  Others are following suit,and still others were already there.

There's a thing I tell myself every day- Liberty always has her sons, even when she forgets to value them.

Thu, 07/07/2011 - 10:52 | Link to Comment Silver Dreamer
Silver Dreamer's picture

Only 6%? The property I "bought" went from 384K to 130K in value.  It was in an urban area that went from decent to all section 8 housing. Uhm... I'm long gone, and I have zero guilt what so ever about it either.

Thu, 07/07/2011 - 11:03 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Sorry, missed a comma.  I am currently 30% under, fixed rate 6%.  I didn't go with a TBTFbank though, so my lender is servicing the note, but sold to Fannie.  I challenged it and lost because of the servicing claus, so here I sit paying it away.

Thu, 07/07/2011 - 11:10 | Link to Comment Silver Dreamer
Silver Dreamer's picture

Look into a short sale.  Most lenders require you to be behind before they will even consider it.  Do not deal with the lender yourself.  Get a professional "distressed property" or short sale negotiator.  They cost you nothing (their fee is worked into the settlement), and they do all of the haggling.  Before you decide to go forward, plan to move out and get a rental BEFORE your credit hit occurs.  A short sale is "only" a 100 or so point credit hit.  A foreclosure is around 250 supposedly.  The ethics of the idea are debatable.  Is the house defendable in an all out collapse?  Can you heat it without utilities?  Your life is worth more than your credit.

Thu, 07/07/2011 - 10:54 | Link to Comment Max Hunter
Max Hunter's picture

When I can stop paying for my 30 year 6% under-water mortgage that I have been in for 5 years?

Anytime you want.

Thu, 07/07/2011 - 10:56 | Link to Comment TheTmfreak
TheTmfreak's picture

This is the obvious answer.

Thu, 07/07/2011 - 10:57 | Link to Comment Conrad Murray
Conrad Murray's picture

When I can stop paying for my 30 year 6% under-water mortgage that I have been in for 5 years?

Today seems like a good day. Be sure to send a copy of this article in lieu of the mortgage payment.

Thu, 07/07/2011 - 11:08 | Link to Comment karzai_luver
karzai_luver's picture

You can stop anytime you grow a pair.

 

Thu, 07/07/2011 - 10:36 | Link to Comment Josh Randall
Josh Randall's picture

Win-Win = banks don't have the legal note thanks to MERS and the Soetero admin wants to quell food riots. Like it says "Win-Win"

Thu, 07/07/2011 - 14:17 | Link to Comment mahalopamala
mahalopamala's picture

It is a win-win.  Banks don't have to take a loss and try to rehab and resell a house that there is no market for and there are less pesky homeless people to deal with.  If we ignore our problems long enough, we don't care who created them and that they exist or even that there may be another solution.

OK...here goes an off topic observation, please bear with me.

Back in the depression of the 1930's my Grandma knew that being newly married, she was lucky to be able to live in a small room with her husband at her Grandma's house.  She also knew she was very fortunate to have a lovely honeymoon dinner of biscuits and red gravy (tomato gravy for the uninitiated).  So many others were literally starving and had no roof over their head. Staying in an overpriced house with food stamp benefits with no hope of a job meanwhile the banks profit- sounds worse and more demoralizing than the experiences of my Grandma.  At least back then, they had the land and their community and could grow their own food, get exercise by gardening, and work physically for the good of themselves and others even if they were unemployed. 

Thu, 07/07/2011 - 15:59 | Link to Comment Hacked Economy
Hacked Economy's picture

Well said, mahalo.

We need only to remember how our grandparents lived in the 30s and 40s to better appreciate what we have now.  We're entitled to nothing, and there are those who are living in alleys and are hungry.  Do you think they'd buy into someone's whiny argument that they can't afford the latest iPod?

Thu, 07/07/2011 - 10:36 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

It's all about keeping the pumps primed and the presses printing.

Full speed ahead Ben, we've only just begun.

Thu, 07/07/2011 - 10:45 | Link to Comment Xibalba
Xibalba's picture

VIX going to 11?

Thu, 07/07/2011 - 10:36 | Link to Comment the not so migh...
the not so mighty maximiza's picture

How about all the people that are paying their mortgages, what do they get?  This is actually discrimination, you have to help everyone 100% no exceptions.   I would take them to court of this BS, its against the UN charter and international law.

 

 

Thu, 07/07/2011 - 10:40 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Someone has to exist to pillage.  You and me have apparently volunteered to be the ones. 

Thu, 07/07/2011 - 10:44 | Link to Comment the not so migh...
the not so mighty maximiza's picture

I really hope they do not raise the debt ceiling.  At least everyone gets fucked equally 100% with collapse. 

Thu, 07/07/2011 - 10:54 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Hope all you want, but I am willing to bet they can dance on this tightrope through election time at least. -

Congress to approve increase in US debt ceiling to $15.1T or more before midnight ET 31 Aug 2011

Last prediction was: $8.00 / share
Today's Change: -
80.0%
CHANCE

Thu, 07/07/2011 - 11:34 | Link to Comment MachoMan
MachoMan's picture

Someone will be there to pick the winners and losers regardless of whether a government is around...  but, make no mistake about it, even if the debt ceiling is not raised, someone will still be there picking the winners and losers...  where can we cut?  Oh, here is a not so politically able area...  cut that one...  next?  The game has a long way to play out...

Thu, 07/07/2011 - 10:45 | Link to Comment max2205
max2205's picture

It's not about you "getting", it's about you "getting" fucked again

Thu, 07/07/2011 - 10:55 | Link to Comment nedwardkelly
nedwardkelly's picture

This is actually discrimination, you have to help everyone 100% no exceptions.

Haha... What about people that don't have mortgages? They shouldn't get freebies? Hell, I don't want freebies, just quit taxing me and I'll be fine.

Thu, 07/07/2011 - 11:02 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Sounds good to me , people with no mortgages get something still.  100% everyone no exceptions

Thu, 07/07/2011 - 11:18 | Link to Comment nedwardkelly
nedwardkelly's picture

Sounds good to me , people with no mortgages get something still.  100% everyone no exceptions

Man, your attitude is just so fundamentally fucked up that it is ridiculous. Sorry for being so blunt, but that is just the simple truth.

For the Government to give ANYTHING to ANYONE they first have to take it away from someone else. How the fuck do you propose teh Government giving something to '100% everyone no exceptions?'.  The Government doesn't take from everyone, so the tax payers are still net losers. Fuck. That. Shit.

Instead of arguing for the Government to give something to everyone, you should be arguing for the government to stop the handouts to anyone!!!!!!!

Thu, 07/07/2011 - 11:31 | Link to Comment the not so migh...
the not so mighty maximiza's picture

They only way for government to stop the handouts is for government ceasing to exist.    Governments exist to give handouts, steal or print.  If they are going to do it though it has to be 100% for everyone.  Just a percentage of people getting handouts, bailouts is discrimination in its most basic form.  Good luck trying to stop any goverment giving money out thats the only thing they do.

Thu, 07/07/2011 - 11:15 | Link to Comment Boxed Merlot
Boxed Merlot's picture

How about all the people that are paying their mortgages, what do they get?...

One solution should be any payments made accrue towards principle reduction as the financial institutions that bifurcated the mortgages have already been made whole a couple years ago. If you stopped paying your mortgage a while back, well, you don't have as much equity as your more responsible neighbor.

In short, the mortgage is dead and any funds you paid belong to you anyway. Our anger should be directed to the financial institutions that killed 40-60 million deals with their hairbrained MERS scheme. I did nothing to cause my homes value to plunge 68% except pay my mortgage.

Thu, 07/07/2011 - 13:29 | Link to Comment the not so migh...
the not so mighty maximiza's picture

hey thats something

Thu, 07/07/2011 - 16:12 | Link to Comment Hacked Economy
Hacked Economy's picture

I have a few years left on my mortgage, and have made every single payment on time since the beginning.  My bank actually owns the note, and my payments are deducted from my checking account.  All is hunky-dory so far.

But what's this?...my family relative has been behind on his own mortage since he bought the house only a couple of years ago.  He's at least six months behind, and now he's able to pay only 33% of the payment amount per month due to the Obama plan.  And now Obama's going to be extending that plan?

You know what my relative has been doing with that "extra" money he suddenly has now?  Buying stuff and going out to eat.  My bitterness is building up...

If I weren't such a nice guy and believed in keeping my promises (to my bank, in this case), I'd rather stop paying and use that money to get some gold and sundries.

Blech!

Thu, 07/07/2011 - 10:37 | Link to Comment Kat
Kat's picture

Obama, the genius economist, thinks there's a free lunch! 

What could go wrong?

Thu, 07/07/2011 - 10:40 | Link to Comment BKbroiler
BKbroiler's picture

now I wish I HAD bought that house with 0% down and cash back at closing. deal!

Thu, 07/07/2011 - 10:40 | Link to Comment Dr. Engali
Dr. Engali's picture

I'm really starting to get pissed off about this. I have been  struggling to pay my mortgage for the past two years and all these dead beats are getting off Scott free.

Thu, 07/07/2011 - 10:41 | Link to Comment BKbroiler
BKbroiler's picture

pride's a bitch, ain't it?

Thu, 07/07/2011 - 11:11 | Link to Comment karzai_luver
karzai_luver's picture

stupidity is a bitch , ain't it.

cowardice is a bitch,ain't it.

fix it 4 ya x2.

sheep.

 

Thu, 07/07/2011 - 11:16 | Link to Comment BKbroiler
BKbroiler's picture

look who sprouted some balls, newb.  You missed the chapter on sarcasm, back to school.

Thu, 07/07/2011 - 21:41 | Link to Comment Prometheus418
Prometheus418's picture

WTF do you think we're going to replace the status quo with, if not old-school pride and grit?  Just can't buy the argument that joining the parasite class is somehow patriotic and morally superior.

Thu, 07/07/2011 - 10:51 | Link to Comment jomama
jomama's picture

'starting to get pissed off', lol

Thu, 07/07/2011 - 10:56 | Link to Comment Silver Dreamer
Silver Dreamer's picture

I continue to be amazed at this situation.  Move.  There's nothing stopping you from short selling your property.  Get yourself a professional short sale negotiator, the business is booming as you might expect, and get the eff out.

Thu, 07/07/2011 - 11:11 | Link to Comment Dr. Engali
Dr. Engali's picture

My problem is I've been in the house for 16 years and in four years it's paid off. A recent divorce and the economy have devistated my finances. I am finally getting things back together and putting money back (in Pms this time), but it has been a struggle. All these free loading fuckers are getting under my skin though.

Thu, 07/07/2011 - 11:31 | Link to Comment Silver Dreamer
Silver Dreamer's picture

Are you a credit union member? My credit union really saved my ass once by giving me what they called a "signature loan" to consolidate some higher interest and other debts into a manageable three year fixed monthly payment.  You might be able to get a credit union loan to pay off the rest of your mortgage, if it is that close to being paid off, and then you would get yourself some serious breathing room.  It's something to consider at least.  When I went to get my loan, I was nearly panicking from not being able to stay above water.  We were picking between groceries and medical bills, and I was on the verge of bankcruptcy.  It's hard to think clearly in such situations, and you have a relationship nightmare to add to your stress too.  I hope it all works out for you.

Thu, 07/07/2011 - 11:42 | Link to Comment Dr. Engali
Dr. Engali's picture

No it's U.S.Bank and I hate them fuckers. They would call me and harass me when I was a few days late after 14 years of never missing a payment while all these other bastards are living free of charge. I fully expect them to just be handed their house,mortgage forgiven of course. Between the collapse and the divorce it though me into bankruptcy. I took the house through because I had equity and was so close to pay off. I'm in pretty good shape now but if I had to do it all over again there are a lot of things I would have done differently.

Thu, 07/07/2011 - 21:50 | Link to Comment Prometheus418
Prometheus418's picture

Don't be amazed, just realize that not every situation is the same.  I could move out using the methods you mention above, but when it comes right down to it, renting a 4-bedroom, 2-bath anywhere around here would cost about 50% more than I pay to keep my mortgage current.  It's the most often-forgotten fact about mortgages- if you buy at a fixed interest rate, your payment remains the same, while rent all around you increases.

You are also conveniently blanking out the fact that the landlord you expect to rent from is likely paying a mortgage on the property you're renting from the TBTF banks.  At least in my home, I can grow my garden and modify the structure as I see fit- without asking anyone for permission.

This whole "no one should own a home" meme is getting pretty worn out and tired.  Just because your home stopped being an ATM does not mean that you can live just as comfortably under a bridge.

Soon as I see a defaulter with clear title in hand, and an explaination of how they pulled the trick off, I'll play this game- but until then, I'm keeping moral high-ground, with dry powder and clear lanes of fire.

Thu, 07/07/2011 - 10:57 | Link to Comment nedwardkelly
nedwardkelly's picture

I'm really starting to get pissed off about this.

Starting...!? Holy shit you've got a high tolerance for being rogered.

Thu, 07/07/2011 - 10:38 | Link to Comment Sockeye
Sockeye's picture

Moral hazard has been completely eradicated from our collective consciousness.

Thu, 07/07/2011 - 11:13 | Link to Comment karzai_luver
karzai_luver's picture

moral hazard, you cretin, this is just bidness, wake up and go out into the

real world.

 

Thu, 07/07/2011 - 10:44 | Link to Comment PulauHantu29
PulauHantu29's picture

Sounds about right...cut health care for all the Seniors in our society so we can hand out more free money to deadbeats.....great idea.

Thu, 07/07/2011 - 10:44 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

That's it! I'm not paying rent next month, and NOT because I don't have the money.

 

ok, it's because I don't have the money.

 

Here's to hoping I don't get evicted immediatly, I want to live 2+ years rent free like these "home owners"

Thu, 07/07/2011 - 10:47 | Link to Comment ben_bernanke
ben_bernanke's picture

This blogger has proven market manipulation, including the exact nature of how it is done and how to profit off it.

 

As we head towards a value on IWM foretold months ago...

 

http://marketmanipulations.blogspot.com/

 

 

Thu, 07/07/2011 - 10:51 | Link to Comment FubarNation
FubarNation's picture

Well I am now accepting the fact that I am a complete fucking sucker because I:

 

- Bought a house I could afford

- Paid cash for it

- Live well below my means

 

Fuck this shit.

Edit:

 

I used to make fun of this lady.  Now I'm the fool she was right

 

http://www.youtube.com/watch?v=P36x8rTb3jI

 

Thu, 07/07/2011 - 10:59 | Link to Comment nedwardkelly
nedwardkelly's picture

Fuck this shit.

You're not alone, but unfortunately apparently in the minority. Common sense, not so common after all. The 'right thing to do' according to the administration and general public policy was to do the wrong thing. Bailout bonanza bitches, if you didn't put yourself in a position to get bailed out, apparently you've only got yourself to blame!

I second your motion to fuck this shit. Fuckers getting free rides while I'm getting taxed out the wazoo.

Thu, 07/07/2011 - 11:16 | Link to Comment karzai_luver
karzai_luver's picture

actually you are one of the smart ones and should be in position 

to amass great wealth and productive enterprises if that is your goal.

don't become a sucker and believe you were played , noone owes you a moral system.

get over it.

 

Thu, 07/07/2011 - 21:53 | Link to Comment Prometheus418
Prometheus418's picture

Yes.  Thank you for talking sense!

Thu, 07/07/2011 - 10:48 | Link to Comment Atomizer
Atomizer's picture

Here comes your tax increase!

Thu, 07/07/2011 - 10:54 | Link to Comment plocequ1
plocequ1's picture

I rent and love all 26 years of it.  Thanks anyway President Obama. In other news, The market is up today.

Thu, 07/07/2011 - 11:23 | Link to Comment Silver Dreamer
Silver Dreamer's picture

Paying a bank 36,000 dollars a year was "saving" me 5,000 dollars in taxes.  Woo hoo!  That's an AWESOME deal.  /sigh  I've given up trying to explain to people that buying isn't exactly a good investment.  As a renter now, I have no yard or home maintenance, I do not pay the property taxes, and I could care less what the value of the property is.  I'd say that's a nice place to be... a more wealthy one too.

Thu, 07/07/2011 - 12:00 | Link to Comment Almost Solvent
Almost Solvent's picture

I don't disagree, but please tell me that you do not vote on school district budgets since you do not actually pay any school property taxes.

 

School property taxes are a fucking joke - the budget is voted upon by all eligible voters, even if said voter does not own any real property and thus does not actually pay any school property taxes.

 

Only landowners should be allowed to vote on any budget that includes a property tax levy. Just because you rent and have 3 kids in the school district does not mean that you should have any voice on the budget setting the property tax rate.

 

I am not saying non-property owners should not vote for elected officials, only that non-property owners should not be able to vote on budgets that include property taxes.

Thu, 07/07/2011 - 12:15 | Link to Comment Bastiat
Bastiat's picture

Yep. Sold my place in 2006, put the money in silver.  You might say: it pays the rent.

Thu, 07/07/2011 - 10:48 | Link to Comment tecno242
tecno242's picture

I ask again.... what is the point of working.

If you are unemployed and adopt a couple special needs kids, you can live the high life at home, take care of the kids and never set foot in an office.

collect unemployment for 2 years, don't pay your mortgage for a year.. then after that, just let it default and stay in the house for another 2 years, get foodstamps, get a ridculously huge tax refund for adopting the kids.

You can literally be a sham-wow sucking off the morons working in an office. 

why be productive.. whats the point.. you're the one to get screwed.

 

Thu, 07/07/2011 - 11:04 | Link to Comment pazmaker
pazmaker's picture

you don't even need to adopt just take in a few foster kids.

Thu, 07/07/2011 - 11:18 | Link to Comment karzai_luver
karzai_luver's picture

there are many available .

how many do you have, what are their ages and needs?

WHAT, just another clown with no clue?

 

 

Thu, 07/07/2011 - 11:35 | Link to Comment Silver Dreamer
Silver Dreamer's picture

Fostering is not as easy as you might think.  We looked into it.  The state I am in are nazis of course, and simple things like "Do you have guns in your home?" immediately came up.  Uhm, well, for fuck's sake.  Yes, I have guns, and what does that have to do with this process?  The children have to be "safe" of course.  If you want foster children, bend over and prepare to be effed in the A without the KY.  We didn't get long into the process, pun intended, before we pulled out.  har har

Thu, 07/07/2011 - 11:17 | Link to Comment karzai_luver
karzai_luver's picture

pick up a couple of those special kids and then report back to me in about a year.

You are full of shit.

 

Thu, 07/07/2011 - 22:02 | Link to Comment Prometheus418
Prometheus418's picture

That gets you five years.

Five years of shit.  And then, you're unemployable.

I have a brother that is 14 months younger than me, and I have been watching him game the system for the last 13 years.  Yeah, he's a king amongst men- he works part time as a cook, and his house looks like it has been hit by a tornado, a hurricane, and a dust strom.  He's got 1.5 working vehicles, and the good one is held together with duct tape.  They promote dumpster-diving as a great way to feed his kids (google: freegans) and are absolutely dependant on others for anything they need- from haircuts to food.

Fuck that.  I'll be the "sucker" with a basement full of expensive tools, a stack of silver and no need to ask anyone for anything.  Even my boss says please and calls me "sir."  Be careful what you wish for when you decide to start sucking on the teat of the government.

Thu, 07/07/2011 - 10:49 | Link to Comment dwilso39
dwilso39's picture

This is getting crazy.  I don't see how hard working America's can vote for Obama's re-election (can you say "one term").

 

I know we all need help sometimes, but look at what you saying to Americans that ARE working and adding to the GDP...

Thu, 07/07/2011 - 10:52 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Over 50% don't pay taxes and over 50% are on food stamps.  He will win.

Thu, 07/07/2011 - 11:02 | Link to Comment nedwardkelly
nedwardkelly's picture

I don't see how hard working America's can vote for Obama's re-election

Open your eyes man, it's not about Obama. Think Romney or Bachman will do anything different? Ron Paul maybe.

Doesn't matter who gets elected, I'm sure they figure the torture will continue until morale improves. Or until we're all f'ed.

Thu, 07/07/2011 - 10:50 | Link to Comment Critical Path
Critical Path's picture

None of these stories surprise me anymore, NONE!  Bail out Nation.  What surprises me is that no one pays any attention to the flip side of falling prices in that other individuals would eventually step in and and find some equilibrium in the housing market.  I would, assuming prices were "allowed" to correct, step in and buy my first home.  In this ass-backward reality however, its good to keep providing the means to those who can't afford it and never could while collectively pushing all of us into further debt.  I am recommending a new term for my generation, how about, "generation fucked"? 

Thu, 07/07/2011 - 10:58 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

It's very fitting.

 

Thu, 07/07/2011 - 11:03 | Link to Comment equity_momo
equity_momo's picture

Sir , you are 100% correct.

I have saved and waited and am in a position to buy my first home. I went without vacations , fancy cars or dining out to be in that position.

I dont want to however , pay merely 25% below the top - the top of a bubble - which is around 2004 levels. From 01 to 04 prices basically doubled in many areas. 

The market needs to correct just about everywhere back to pre 01 , maybe to mid 90s prices. Thats alot more downside - which the PTB are trying to prevent to save their bankster buddies and buy votes.  A modest home on the market at 400k in an ok neighbourhood is still going to drop to 300k , possibly 200k. I know that , smart money knows that ,  so no ones buying. 

This puts people like you and i in the tiny minority , so it makes us irrelevant. What was Independance Day about again? No tax without representation. Well where is my fucking representation?

All this does is push my savings into gold. TPTB are making this a whole lot worse by kicking this can. Meanwhile rents edge higher for poorer and poorer stock because greedy fucking deadbeats arent being forced to downgrade into something they can afford.

Thu, 07/07/2011 - 11:08 | Link to Comment nedwardkelly
nedwardkelly's picture

I would, assuming prices were "allowed" to correct, step in and buy my first home.

Just make sure that when you do, that you:

a) Buy the house with $0 down

b) Get an adjustable rate, interest only mortgage

c) Buy 10X more house than you need, in the biggest bubble market you can find

d) Heck, buy a 2nd home as an 'investment' that you can 'flip for a profit'

Then it blows up, bail out! Or is it get bailed out?

Thu, 07/07/2011 - 11:25 | Link to Comment karzai_luver
karzai_luver's picture

you don't get it, the prices can't fall to market clearing without killing the market.

There is too much backed by the fantasy valuations in this "market".

 

THe only way would be a 40-50% slaughter which with the leverage and promises

kills the golden goose.

 

P.s. if you find a house/area that you like, then buy it,you are not going to make money on it. Either find something you like and buy or shut up.

You think you can time the housing market , ha hahaha,

good luck.

Many of you make it too complicated. It's not an investment , it's a roof over your head and a nice fence with nasty dogs behind it. That's all.

 

Come done off you high horse , you ain't the first cowboy.

It can't correct in any timeframe other than 50-60 years.

 

Godd luck.

 

Thu, 07/07/2011 - 11:48 | Link to Comment Critical Path
Critical Path's picture

Never said anything about purchasing a home to "make money."  Also, I'm well aware of what a correction in house prices will do to bank balance sheets, etc, etc.  That was not my point, however, you bring up another issue, that extending a mortgage hiatus to borrowers was never intended to help the borrowers as its described but rather prop up those exact balance sheets. 

Anyways, thanks for the lecture.  Next time I read an article somewhere delcaring our next method for keeping the prices up to help the borrowers (protect the lenders) and I feel disgusted for reading it, I'll say to myself: "self, get off your high horse."

Thu, 07/07/2011 - 10:52 | Link to Comment ArkansasAngie
ArkansasAngie's picture

If I have to pay my debts ... so does everybody else.

And ... by the way ... you don't have my permission to tax me so that the government can pay other people's debts either.

Do NOT follow this link or you will be banned from the site!