Tent city highlights US homes crisis

Discussion in 'The Club House' started by Quasi, Mar 17, 2008.

  1. Quasi

    Quasi New Member

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  2. bkt

    bkt New Member

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    "Tent City" situated on "waste ground" holds a whopping 300 people. Let's say there are 100 such "cities" in the country. That amounts to less than 0.01% of the overall population.

    I don't think the country is going to sink to third-world status just yet.

    If you can show how when and where lending institutions deliberately misled or withheld information from prospective borrowers which caused them to get into hot water, fine. Until then, I'll politely suggest that maybe these borrowers weren't the brightest lights on the tree. It REALLY PISSES ME OFF to read about "foreclosure victims". They're not victims. They knew -- or should have known -- the rules and, predictably, they lost their property. No one did this to them but themselves.
     

  3. pioneer461

    pioneer461 New Member

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    Any time you see BBC, think CNN. They are like-minded, anti-American, left wing propaganda machines. They both like to highlight anything that reflects poorly on our country.

    [​IMG]
     
  4. Quasi

    Quasi New Member

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    Um, ok, you're right..the economy's great and any suggestion otherwise is a fabrication of the left-wing propoganda machine.

    I'm done folks. Happy to have an intelligent debate of the issues, but this is obviously not the board for that.
     
  5. bkt

    bkt New Member

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    Yeah, whatever. Hang it up and scamper away back to Daily Kos if that's all you've got.

    Look, Quasi, BBC isn't exactly known for its U.S.-friendly reports and the numbers in the article don't exactly spell doom.

    Is anyone here saying the economy is in great shape? No. Are ARM loans to blame? No, not entirely by a long shot.

    Care to take another shot?
     
  6. Doug1627

    Doug1627 New Member

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    Thats a sad thing to read.
     
  7. ScottG

    ScottG New Member

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    Isn't this a gun board? If not, I'm on the wrong site.....:p
     
  8. bkt

    bkt New Member

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    Sure, but this is the Club House where pretty much any topic is open.
     
  9. ScottG

    ScottG New Member

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    Oh, sure. I understand that, but for quasi to give up the whole board just because we all don't fall in line badmouthing the economy seems a little silly if not childish.
     
  10. MarkoPo

    MarkoPo New Member

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    Wow if you think there is strong opinions and bickering out of control here, I invite you all to check out the general discussion of JeepForum. There are anything but Jeep related.
     
  11. GlenJohnson

    GlenJohnson New Member

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    I know of one gent that has ended up buying a total of 5 houses, hoping to make enough rent off of any one of them to make the payments on the rest. Needless to say, it's not working. Another friend of mine bought a house at a great rate, but the rate went up and so did the house payment. He can't afford to keep the house. Someone else I know bought a house at a fixed rate, and when he could, re-financed at a better rate, took the extra money, payed off what little credit card payments he had and is setting pretty. It depends on what you do. Don't always blame the economy, some folks know what to do, some don't.
     
  12. Boris

    Boris New Member

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  13. bkt

    bkt New Member

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    My wife works at JPMorgan-Chase, and for years worked in home mortgages. The bank was told by the government to make certain it did not appear that they discriminate who they gave loans to based on race or gender. This policy led a number of smaller lending institutions to give out loans to many people who really couldn't afford them.

    It's as much government meddling that caused this problem as corporate greed.

    Bottom line, though, is the borrower should always know what he or she is getting into. Like I said above, if anyone can show where a lender deliberately withheld information or deliberately misled prospective borrowers, I'll be right there with you demanding the lenders get some serious prison time. But the vast majority of those who naively took out ARMs...they're victims of their own ignorance and/or stupidity.

    The government has no business bailing anyone out. Then again, the government has no business directing others how to conduct their own business.

    Very many of the "truly needy" aren't needy at all. Hell, I've lost count of the number of times I've seen extremely-well-fed (read: lard-asses) covered in bling wearing leather jackets load up the conveyor at the check-out line with steak, lobster and all kinds of junk food and pay with food stamps. :mad:

    No matter who the recipient is and no matter their financial condition, it is never the responsibility of the Federal government to spend one dime on them.
     
    Last edited: Mar 21, 2008
  14. NGIB

    NGIB New Member

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    Wow bkt, you actually expect folks to take personal responsibility for their actions. How absurd as we as a nation must bail out everyone that does something stupid.


    Please be more politically correct and realize that personal responsibility is not required in todays enlightened age.:)
     
  15. Quasi

    Quasi New Member

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    Photog's got it.

    Corporate greed allowed for these lenders to initiate loans they knew would not be repaid, package them up into the MBS and CDO derivative packages, slap a fraudulent AAA rating on them, and sell them off to unsuspecting investors. This is Enron x 1000 and as this crap unwinds, it's snowballing into a problem that may send us into something worse than a recession. The scary thing is that, due to the leverage the lenders are allowed to use, each of these defaults has a huge multiplier on the amount of money it takes out of the economy (hence the credit crisis.)

    Now the shady lenders are getting bailed out, both indirectly by low Fed Funds Rates, and directly by the Fed taking these bad loans by the likes of Bear Stearns onto their books. We're all paying the price via a worthless dollar, higher inflation, and undoubtably higher taxes in the future to pay for stimulus packages and other bailout programs.

    bkt: yes, there was fraud and you can bet when this whole thing is over there will be indictments (if not angry mobs.)

    P.S. i've never visited DailyKOS in my life.

    P.P.S. I like my guns, and I'm encouraged by the more balanced opinions I've seen. I just don't think I could contribute much to a forum if the majority only believe what Sean Hannity and Rush Limbaugh tell them to think.
     
  16. moviezombie

    moviezombie New Member

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    +1

    movie zombie
     
  17. bkt

    bkt New Member

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    I'll do some digging to find out more about this. If you have some links you can share, please do. It makes sense that some lending institutions would have given out loans to the wrong people with the intention of selling them off, and I have no doubt that did happen. That in and of itself is probably not illegal. But if they misrepresented those high-risk loans as AAA, that's very likely criminal. And if that was the norm and the majority of loans currently in default were handled that way, some folks need to swing.

    Agreed. My point was that government meddling prior to this problem and government meddling after the fallout is responsible for creating problems, not solving them.

    Angry mobs are good.

    Check it out sometime. It'll make your skin crawl (the comments section is particularly entertaining). It's good to see what the other side is thinking.

    Well, it's funny you should talk about balanced opinions. It seemed you wanted to place responsibility for the situation squarely on the shoulders of the lenders. And it seemed, with the BBC article, that you were implying this was a disastrous event, when it's actually a fairly small percentage of people in this predicament.

    While I agree some lenders were wrong and that some may have acted criminally, the responsibility for defaulted loans should be shared also with the borrowers -- in fact, MOST of the blame should sit with them -- and also with the government.

    Fair?
     
  18. bkt

    bkt New Member

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    [​IMG] :D
     
  19. fapprez

    fapprez New Member

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    At this point, you almost have to talk politics to talk firearms. Heck, before you know it, we'll need a license to talk about guns!
     
  20. bkt

    bkt New Member

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    Unless the lenders acted in a criminal way, the blame for foreclosures rests mostly with those who overextended themselves. If those who took out loans had actually made the payments they had agreed to make, this would not be an issue.

    We -- all of us -- need to take responsibility for our own actions. That includes the borrowers as well as the lenders who knowingly gave loans to people who they knew would not be able to pay back. But unless the lenders engaged in criminal activity, they need only answer to their shareholders.

    The government needs to back the hell off. Taxpayers should certainly not be on the hook for covering this debt.