Senate passes housing bill amid turmoil

pickel · July 12th, 2008, 07:47 AM

Senate passes housing bill amid turmoil - Jul. 11, 2008

The Senate measure would create a new $300 billion government-backed foreclosure prevention program and strengthen oversight of Fannie Mae and Freddie Mac. The two mortgage finance giants, which play a central role in the U.S. housing market, took a thrashing this week on Wall Street as investors worried about their financial health.

Gotta take care of those POOR Wall St. investors

"It's not the final stop, but it's a major step," said one of the lead authors of the bill, Senate Banking Committee Chairman Christopher Dodd, D-Conn. "My hope will be that they would be willing to accept this Senate bill."

Final passage of a package has been delayed for close to two months due to substantive disagreements as well as countless procedural delays

Two months with their fingers you know where .

On cable news network, don't remember which one, it is predicted that in 2007/2008 there will over 2,000,000 foreclosures in the USA. With the average famiy size @ 4, that's like 8,000,000 people effected. And down the line, the number becames exponential. Where are ALL these folks going to go and do ???? On a side note, I was saddened to become aware of the sale of the Chrysler Bldg. Probably the most picturesque Bldg. in the New York skyline. My father was one of the general foremen ( Electrical) on the Pan Am Bldg. ( now Met Life). New York seems to be leading America on the way down the tubes. My heart is heavy.

MTAtech · July 12th, 2008, 11:24 AM

I'm actually thinking that this is a bad thing. One of the major problems this country has is cost-prohibitive housing. Backing overpriced mortgages keeps the prices up. Perhaps the best thing would be a total collapse that will bring housing prices in line?

Chuckiechan · July 12th, 2008, 12:03 PM

Quote:

Perhaps the best thing would be a total collapse that will bring housing prices in line?

Actually, that is exactly what is happening in California.

Since when did MTA become a free marketeer?

I believe the feds should keep large mortgage houses from failing, but I don't think individual homeowners should be bailed out because they were stupid, even though the idea of "consequences" is a tough sell in todays society.

Think of a mortgage bank as a gas station that pumps money. What would you do if all of the local gas stations folded, and you had to drive 50 or 100 miles for gas? Or worse yet, could not get gas at all?

Pexster · July 12th, 2008, 12:53 PM

Those quasi-governmental corporations should have been more closely monitored and regulated long ago. They were formed for a specific purpose, and yet were allowed to become interest rate arbitrageurs in an artificial market using our tax dollars. Also, the whole concept of packaging and securitizing mortgages has gotten completely out of hand.

One good thing that may yet come of this is the sweeping overhaul of our financial regulations that many are working on. Time will tell if the reforms are effective and meaningful, or just a set of handouts to the industry.

pickel · July 12th, 2008, 12:53 PM

Quote:

Originally Posted by Chuckiechan

I believe the feds should keep large mortgage houses from failing, but I don't think individual homeowners should be bailed out because they were stupid, even though the idea of "consequences" is a tough sell in todays society.

Kinda heartless there, Chuckie

So you're saying because the mortgage houses who were smart and screwed the stupid home owners, they should get off scott free and let the little dumb asses absorb the brunt off this fiasco??? Hope you didn't have more than quarter mil on deposit with IndyMac.

Chuckiechan · July 12th, 2008, 01:30 PM

Quote:

So you're saying because the mortgage houses who were smart and screwed the stupid home owners, they should get off scott free and let the little dumb asses absorb the brunt off this fiasco???

Have you ever taken out a loan Pickel?

Did it ever occur to you that maybe "flipping that house" wasn't a sure thing?

pickel · July 13th, 2008, 01:32 AM

Quote:

Originally Posted by Chuckiechan

Have you ever taken out a loan Pickel?

Did it ever occur to you that maybe "flipping that house" wasn't a sure thing?

"flipping that house" My wife would be quite beside herself if I was to Flip our house

I usually have whatever loan I make, paid off well ahead of the due date. Through a lot of luck and some foresight, I, as for now, am debt free and carry a minor balance on my credit cards.

MTAtech · July 13th, 2008, 08:20 AM

Quote:

Originally Posted by Chuckiechan

Actually, that is exactly what is happening in California.

Since when did MTA become a free marketeer?

I'm on records a being for markets but I believe that government has a role when market forces fail.

In the case of the financial institutions, better regulation is needed. Certainly, using the Bank of the General Public every time a financial firm takes a hit isn't the answer. It galls me that these firms demand tax breaks when they're making billions but run to the government for help when they're losing billions.

pickel · July 13th, 2008, 05:06 PM

Quote:

Originally Posted by MTAtech

I'm on records a being for markets but I believe that government has a role when market forces fail.

In the case of the financial institutions, better regulation is needed. Certainly, using the Bank of the General Public every time a financial firm takes a hit isn't the answer. It galls me that these firms demand tax breaks when they're making billions but run to the government for help when they're losing billions.

AMEN Brother!!!!!!!!