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Bailing out the middle class?
Discuss the final installment of this week's Dust-Up.
1.
Let's be truthful about who this all really bails out. It's motivation is to protect the banks and Wall Street folks. There never has been (nor will there ever be) any motive to assist the working middle class in any of this. No one stopped it because City,State, &Fed Governments all made a tax killing off of this "Lemming" behavior of the working middle class.
The banks and wall street took the profits (reward), let them absorb the risk , now that it's gone bad.
Oh wait a minute, PMI insurance is paid by the victims - who got all that money??
2. When my husband and I bought our first home back in 1983, interest rates were 8%. By the time we closed on the house, however, interest rates had soared to 12% and that was the rate we had to pay if we wanted our little two bedroom, 864 sq. foot house. It was our choice to go ahead and sign the papers, and thus became our responsibility to find the money to pay the mortgage each month (which had a late fee of $65 if our payment was not on time). Nobody helped us out. We scrimped and did without. When we sold the house six years later, we lost $15,000 on it. Again, nobody helped us out.
3. Bail out? I'm of the opinion that much of the personal financial troubles we've burdened ourselves with are the result of impatience. We seem to have this need to "have it all now". For example, what did the high school and college parking lots look like 20 years agoCompared to now? $1000 "beaters" vs $20,000+ vehicles with debt. The emphasis on personal finance seems to have changed from 'take care of your finances, save, and be comfortable' ,to 'get all you can know and worry about it later'. Great for the banks and credit card companies. Not so great for the economy. Earn it, then go get it, you'll appreciate it more.
4. Why not start at the bottom of the food chain? If mortgage procurers were not paid on a straight commission basis, the incentive to write questionable loans would go away. Pay a decent wage to those who take in the loans in the first place and the percentage of unsustainable loans will decrease to a point where no crisis occours. Secondly, by simply holding Mortgage rates at initially contracted rates, would be a lot cheaper in macro economic terms than any bail-out plan.
5. I am part of the middle class and I am struggling. I purchased my home before the real estate rush went into motion. I live in a home that was built in 1950. I have spent most of my equity just to repair the home. I am single parent, paying for college, and daycare.Now I am forced to pay for the increase cost of gas for companies who defer the increased price of gas to consumers. And to top it all off working for a state agency in which we have not received our contracted cost of living wage in over two years. I only feel sorry for those who were totally duped by gready mortgage lenders. Not those who tried lived beyond their means.
6. Slave require a certain level of productivity from the people they hold in bondage. If not met, ALL slaves are punished... those who worked very hard and those who didn't (or couldn't.) Working for the "company" and living in "company housing" (at prices that only deepen the servitude) are our lot. We are now controlled by Wall street, and by government officials who prostitute themselves to it. As long as a few are willing to sacrifice the vast majority for their own excessive profit, none of this will fix. The first step to stopping abuse is to see it for what it is and confront it.
7. I can't buy a home for the last 20 years because of my credit issues. My next door neighbor is an illegal alien and he was able to buy a home. Of course now he is losing it, because he can't afford it. Boo Hoo for all the people that bought homes that can't afford them. Why should I have to pay to bail them out? Makes no sense and I refuse.
8. I think that more of the middle class like myself don't own multiple homes or had a choice when it comes to housing.....I live in a piece of s*#@, It's all we can do to keep paying House note and insurance. Try making 25grand with two kids in daycare and diapers and see how you make it. I shop at goodwill but I am considered Middle Class.......Because I'm not on welfare I pay my bills and taxes why should I be to blame? Pretty soon I will be driving a horse and buggy instead of a minivan because I can't pay for the gas!!!!!
9. People who bought homes using interest-only loans, and other risky deals got just that...a risky deal! "Risk" means you may lose in the end. I'm tired of bailing out everyone! I owe a lot, yet never declared bankruptcy, or missed a payment, etc. I do without a lot, and don't take vacations. I don't want to...but I can't afford to do it otherwise. Maybe I should just join the people who act like someone forced them into dumb deals. I'll max out my credit cards, buy a home with an interest only loan, so everyone else can fix my mess! That's what the big corps do, as well. After all, it's the American way!
10. The reality is that the majority of the people who took out these insanely irresponsible loans DID KNOW what they were doing - They were trying to have their cake and eat it too - The majority of the salemen doing anything to close the deal, "educated/informed" their prospects (i.e. impatient, greedy homeowners) that it didn't matter that their loans would readjust in a few years and their payments would skyrocket- At that point, your house will have appreciated at least 20% more, maybe 40-50% by then, because this train is never stopping, and you will be able to re-fi again with your massive, effortless profits -
Submitted by: Bradly
2. When my husband and I bought our first home back in 1983, interest rates were 8%. By the time we closed on the house, however, interest rates had soared to 12% and that was the rate we had to pay if we wanted our little two bedroom, 864 sq. foot house. It was our choice to go ahead and sign the papers, and thus became our responsibility to find the money to pay the mortgage each month (which had a late fee of $65 if our payment was not on time). Nobody helped us out. We scrimped and did without. When we sold the house six years later, we lost $15,000 on it. Again, nobody helped us out.
Submitted by: BJ
3. Bail out? I'm of the opinion that much of the personal financial troubles we've burdened ourselves with are the result of impatience. We seem to have this need to "have it all now". For example, what did the high school and college parking lots look like 20 years agoCompared to now? $1000 "beaters" vs $20,000+ vehicles with debt. The emphasis on personal finance seems to have changed from 'take care of your finances, save, and be comfortable' ,to 'get all you can know and worry about it later'. Great for the banks and credit card companies. Not so great for the economy. Earn it, then go get it, you'll appreciate it more.
Submitted by: RGF
4. Why not start at the bottom of the food chain? If mortgage procurers were not paid on a straight commission basis, the incentive to write questionable loans would go away. Pay a decent wage to those who take in the loans in the first place and the percentage of unsustainable loans will decrease to a point where no crisis occours. Secondly, by simply holding Mortgage rates at initially contracted rates, would be a lot cheaper in macro economic terms than any bail-out plan.
Submitted by: Fred
5. I am part of the middle class and I am struggling. I purchased my home before the real estate rush went into motion. I live in a home that was built in 1950. I have spent most of my equity just to repair the home. I am single parent, paying for college, and daycare.Now I am forced to pay for the increase cost of gas for companies who defer the increased price of gas to consumers. And to top it all off working for a state agency in which we have not received our contracted cost of living wage in over two years. I only feel sorry for those who were totally duped by gready mortgage lenders. Not those who tried lived beyond their means.
Submitted by: Sofowl
6. Slave require a certain level of productivity from the people they hold in bondage. If not met, ALL slaves are punished... those who worked very hard and those who didn't (or couldn't.) Working for the "company" and living in "company housing" (at prices that only deepen the servitude) are our lot. We are now controlled by Wall street, and by government officials who prostitute themselves to it. As long as a few are willing to sacrifice the vast majority for their own excessive profit, none of this will fix. The first step to stopping abuse is to see it for what it is and confront it.
Submitted by: BB
7. I can't buy a home for the last 20 years because of my credit issues. My next door neighbor is an illegal alien and he was able to buy a home. Of course now he is losing it, because he can't afford it. Boo Hoo for all the people that bought homes that can't afford them. Why should I have to pay to bail them out? Makes no sense and I refuse.
Submitted by: jk24
8. I think that more of the middle class like myself don't own multiple homes or had a choice when it comes to housing.....I live in a piece of s*#@, It's all we can do to keep paying House note and insurance. Try making 25grand with two kids in daycare and diapers and see how you make it. I shop at goodwill but I am considered Middle Class.......Because I'm not on welfare I pay my bills and taxes why should I be to blame? Pretty soon I will be driving a horse and buggy instead of a minivan because I can't pay for the gas!!!!!
Submitted by: Texasmiddleclassmom
9. People who bought homes using interest-only loans, and other risky deals got just that...a risky deal! "Risk" means you may lose in the end. I'm tired of bailing out everyone! I owe a lot, yet never declared bankruptcy, or missed a payment, etc. I do without a lot, and don't take vacations. I don't want to...but I can't afford to do it otherwise. Maybe I should just join the people who act like someone forced them into dumb deals. I'll max out my credit cards, buy a home with an interest only loan, so everyone else can fix my mess! That's what the big corps do, as well. After all, it's the American way!
Submitted by: MM
10. The reality is that the majority of the people who took out these insanely irresponsible loans DID KNOW what they were doing - They were trying to have their cake and eat it too - The majority of the salemen doing anything to close the deal, "educated/informed" their prospects (i.e. impatient, greedy homeowners) that it didn't matter that their loans would readjust in a few years and their payments would skyrocket- At that point, your house will have appreciated at least 20% more, maybe 40-50% by then, because this train is never stopping, and you will be able to re-fi again with your massive, effortless profits -
Submitted by: Jake
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