Community | September 22, 2008 | 3 comments

Possible Banking Bailout Alternatives

source: http://www.youtube.com/watch?v=Z7RlOAWYLkM

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geneonlbk
1) Has anyone calculated the costs of directly helping the homeowner instead of giving a trillion or two to Wall Street? Not a single Wall Street executive has stepped forward pledging to accept a pay decrease and returning his/her Golden Parachute to help our troubled economy. Not one.

2) Help troubled home owners to bridge their mortgage payments so that they are able to remain in their homes.

3) A house that goes into for-closure is a large loss to the homeowner, the banks and now the taxpayers of America.

4) A for-closed home depresses surrounding neighborhood real estate values which adversely affects all American homeowners.

5) Do not allow real estate speculators to walk away from their speculative losses if they are financially able to maintain the mortgage. No one bails out an investor who loses money in the stock market. I believe that a good percentage of the people who are walking away from their mortgages are financially viable and more than able to maintain the mortgage. Why should the taxpayer have to pay for rich people to avoid losses?
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  2. tags:
    Economy,  Bank bailout,  GOP Mismanagement,  Home Prices
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3 comments // Possible Banking Bailout Alternatives

  • barion810
    • 0
      barion810  

    • Since dept/asset is an issue and assets have gone down...

      Why not just take that money and just pay peoples mortgage down while offering a deduction for renters on home purchases?

      It would open up the ratio to better credit ratings.

      Even if it was more expensive, it would be a wash since the taxpayer is just paying himself/herself.

    • 3 years ago
  • aliasone
    • 0
      aliasone  

    • I am reminded of the three blind men who come upon an elephant.

      One touches the stomach and declares "its a wall."

      The second encounters a leg and says "no its a tree."

      The third is embraced my the elephant's trunk and swears "it is a vine."

      One bank will feel that its bad loan packages are worth only 50% of face value. Another bank might say their losses are 90%.

      Who will decide how much to pay a bank for their supposed losses?

    • 3 years ago
  • Picasso9000
    • 0
      Picasso9000  

    • I read that no one, not the banks or the government, knows how to value the so-called mortgage derivatives that seem to be the major problem for Wall Street and the big banks.

      It is possible to understand an individual mortgage and an individual family in distress.

    • 3 years ago
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