Bank Bailout, Dumping Market, Next?

[Money$hit]

I think it's insane that in the states you can default on a house mortgage, and simply walk away, handing the keys to the bank with little (no) repercussions. Who the hell thought that sounded like a good idea?

Not a bad idea when houses were actually worth a shit. The house was decent collateral, but since theres about a 20 month housing surplus, theres no way mortgages can work.

Heres some advice for you all with bad mortgages. Call your bank and try to renegotiate. The last thing the bank wants right now is your house.

[Charlie]

I think it's insane that in the states you can default on a house mortgage, and simply walk away, handing the keys to the bank with little (no) repercussions. Who the hell thought that sounded like a good idea?

The fucksticks at the bank who saw commission $$s in their eyes. The "investment bankers" who thought piles of shit were a way to make money.

In the past, you had to put down 20% to get a loan, and house prices weren't falling like a rock. This meant you had actual equity in the house, and "just walking away" meant you took a 40-50k hit. Now, people have gotten these marvelous interest only, adjustable ARM, 100%, no-down payment type loans, and they're upside down on a house. They're losing money holding the house, not walking away.

Now, obviously, defaulting on a mortgage will fuck your credit, but hey, you've probably got 20+k in CC debt and another 30 in a car, might as well just go BK. Fuck it, you can get another house in 7 years. Banks are all over that shit.

I know at least 25 people that have declared BK before they turned 30.

-Charlie

[Money$hit]

In the past, you had to put down 20% to get a loan

-Charlie

Thats a fucking pipe dream now. With all the liberal fucking policies aimed at homeownership, you can walk in with zero down, and actually make a few thousand at closing.

Homeownership is great, but fucking christ, it shouldnt be a giveaway.

[shiftbmw]

The stock market kicked me in the balls today...

[TwoJ's]

I've been reading numerous "Other ways to spend $700b" stories, and to be honest, i couldn't disagree with a single one of them.

Don't get me wrong, I don't agree to anything of the sort.

So do you disagree or not agree?

[TwoJ's]

That is what the whole debate is. There is no way to be sure. And this is why there is controversy about what to do with the banks that are failing.

[h0lmes]

So, a question that I've been thinking about the past few days... Is this going to be the 'bad' one, worse then the great depression and trying times ahead? Or is it just another overblown situation?

Dude the more you get scared the worse it gets. Just go about your life. At least I know I don't have anything to worry about, I don't have any money! HA!

[Sean5294]

let it collapse, hang the CEO's. we all know the working class is going to get fucked anyway. perhaps this needs to happen. maybe the outcome will be a better America for 98 percent of americans instead of catering to greed. Fuck this is all media driven anyways.

[Sean5294]

That's it Man Game Over!

[peerless]

So, a question that I've been thinking about the past few days... Is this going to be the 'bad' one, worse then the great depression and trying times ahead? Or is it just another overblown situation?

Personally I think its mostly overblown, but the possibility to have complete collapse and financial choas down to civil unrest and riots isn't out of the picture.

This maybe nothing more then innocent training, or it could be that the government knows something we don't.

The Army Times is reporting that the 3rd division’s 1st Brigade Combat Team will be on call for domestic missions as part of Northern Command. From the training mentioned in the Army Times article, it sounds like the unit is preparing for a role as a police force in the event of another major disaster, like Hurricane Katrina.

U.S. troops returning from duty in Iraq will be carrying out homeland patrols in America from October 1st in complete violation of Posse Comitatus for the purposes of helping with “civil unrest and crowd control” - which could include dealing with unruly Americans after a complete economic collapse.

http://www.happilyoblivious.com/blog...estically_784/
http://www.armytimes.com/news/2008/0...eland_090708w/

http://www.dailypaul.com/node/63101

http://www.prisonplanet.com/us-troop...tober-1st.html

[rwh11385]

just another overblown situation

[SpecM]

Personally I think its mostly overblown

me too

[Funkmasta]

holy shit... it's a conspiracy!!!

http://www.michaelmoore.com/words/message/index.php?id=235

[Aptyp]

at least we agree that the situation is overblown

During great depression US was fairly isolated, that's not the case anymore.
When we struggle, every one else struggles with us. Most of Asia is with us.

On the positive side, whatever happens, US can pull out of it today. Factories are built, US infrastructure will remain incredibly strong. If anything it will give US the jump start we needed since 60s. Back in the day, housing was a tiny fraction of your bills, and most money was spent on food.

History repeats itself, and if FICO collapses and every American gets a fresh start, we might have a much stronger economy, since people won't be afraid to start over.

[rwh11385]

The fucksticks at the bank who saw commission $$s in their eyes. The "investment bankers" who thought piles of shit were a way to make money.

In the past, you had to put down 20% to get a loan, and house prices weren't falling like a rock. This meant you had actual equity in the house, and "just walking away" meant you took a 40-50k hit. Now, people have gotten these marvelous interest only, adjustable ARM, 100%, no-down payment type loans, and they're upside down on a house. They're losing money holding the house, not walking away.

Now, obviously, defaulting on a mortgage will fuck your credit, but hey, you've probably got 20+k in CC debt and another 30 in a car, might as well just go BK. Fuck it, you can get another house in 7 years. Banks are all over that shit.

I know at least 25 people that have declared BK before they turned 30.

-Charlie

But dude, it wasn't fair to restrict home ownership only to those who could afford it...