The United States is crumbling brick by brick!

United States
September 4, 2008 10:36am CST
While surfing the net last night I ran across this "Hot Topic" I read many posts with people of so many opinions about the "mortgage crisis" and the bail out. The complaints of the subprime mortgage companies and so on. I do hope that as Americans you realize that it isn't just the subprime loans that are going bad it is all loans. Our economy is collapsing brick by brick as our government stands by and watches the distruction. As an American I ask why do we bail out these big companies? In most small businesses I know only the strong survive. I think the mortgage companies should have had two options and honestly I believe the 2nd of the two would be better for thier financial future. 1st option- Spend millions of dollars on all the foreclosures and go bankrupt! Forced to liquidate to the top dogs that can handle the loans. 2nd option- Come together as a whole and decide to take a cut for a couple of years until things stabilize. Bring all high interest loans down to 5 or 6 percent, stop all ARMS. For the people that already have low interest rates lower it a little more so they do not feel like they are left out. This to me is a win win situation. Sure they will lose some money but when you think about it, they will lose much more with all the foreclosures that are happening. There are vultures (investors) just waiting to steal the property at a rediculous amount of money and make a fortune while our country is in a deficite that is outragous. They would help build up the economy not pull it down. By doing this it will stop the domino effect for awhile. The American people have been hit hard with the cost of everything exploding. Everything is up 33 percent at least. The oil/gas crisis has allowed for other power sources to jack thier rates up as well. Everyone jump on the ban wagon! People hit hard times in thier life and adapt very well as time goes on, I believe we can do this as a nation as well. What happened to us? The greed is beyond belief in this country. People have to choose between neccessities in life, now tell me that isn't a shame. Lets see this month should I heat my house or shall I feed my children? What do you think about the options I have discussed? Do you think the mortgage companies deserve the right to be bailed out? What would you be willing to do with our financial crisis as a country if you where president?
1 person likes this
2 responses
• United States
4 Sep 08
I don't believe that the banks should be bailed out for loaning sub prime mortgages. In many ways, I feel like those of us who had the sense to not take out this type of loan are being punished. My husband and I don't own a home. We've been saving for a 20% down payment on a 30 year fixed rate loan. This is the RESPOSIBLE way to bu a house, yet so many people in this country thought they were entitled to homes that they can't afford. I'm disgusted not only by the borrowers but the lenders as well. Not to mention the fact that those out there who were flipping houses (as part of a get-rich-quick scheme) didn't help matters much. All of this caused the hosing bubble which has made homes unattainable to those who want to do the right thing and save the down payment on a home we can afford. Because of this housing bubble I haven't been able to afford a home thanks to the over-inflated prices in my area. But I'm being punished as my tax dollars will go to bail out the banks who gave sub prime loans to someone who was trying to buy more house than they can afford. How is this fair?
• United States
4 Sep 08
It is not just the sub prime many of the regular mortgage companies had very creative people working for them as well. The government just blames the subprimes but it happened all over! Many people already had bought thier house before all this happened (responsibly) had a crisis whether it was a family member dying or what ever and had to refinance in order to survive. We haven't seen anything yet wait till the 5 and 7 year arms explode. It was the regular banks and so on that bought those subprime loans knowing what was going on but this way they were able to ummm lets say kinda keep thier hands clean. The whole Mortgage Industry took advantage and that is what made this housing bubble. Well at least that is my opinion. Like you 15 years ago I saved the money for the down payment so I do understand where you are coming from. The borrowers just wanted the American Dream of owning a home and at the time they could afford it, and yes that may have been irresponsible of them but I am sure each one thought they could handle it as time went on, some people are not savy or completely understand what happens after the Arm is up, how much the mortgage will actually go up because that isnt shown to them. Sure a couple of hundred is fine we could still swing that but not explained that it could actually double thier mortgage payments. They are not lawyers just regular people looking to live the American Dream.
• United States
4 Sep 08
I don't think ignorance should be an excuse for those people who hopped on the sub prime mortgage bandwagaon. First of all, I think it doesn't take a genius to understand that you can't afford a 500 - 700K house when your income is 50-60K (the median income around where I live). Also, there are the fools who used their house as ATM machines. It's understandable if there was some sort of emergency, but how many people pulled the equity out of their home to fund a vacation, or pay off credit card debit from buying flat screen TVs and iphones. I can't feel sorry for these people, and I don't think our tax dollars should go to bail them, or the banks who loaned them the money, out.
• United States
18 Sep 08
I am not sure what the answer is I know if those companies were not bailed out it would have been a major blow to the economy! Its a scary time and we really need someone that knows more about this to fix the problem and no matter who they get we are going to have to be wait because it took years for us to get into this pickle and will take a few to get us out!