Why do we have to bail out banks and reduce payments on peoples mortgages?
Let it work itself out. It’s not fair for me to pay to reduce someones mortgage because they bought a house they can’t afford
so what’s in it for me? i just get to pay my mortgage and the idoits get theirs reduced?
Many people feel the same way you do and remember back then many banks lent the money carelessly. Now given the home owner is at fault also, but the home owners turned to professionals for assistance and they were miss lead. Banks were giving lenders and brokers big time commissions for those ” bad loans” we are facing today. Getting big commissions to push a loan by the banks made the lenders and brokers sell it harder. I hope this helps and have a great day
That is a valid opinion. What it would mean is that a large number of banks would have failed and perhaps the FDIC could not have protected all depositors. A large number of other banks would have then failed because people would have panicked. A larger number of homes would have been foreclosed and caused prices to be pushed even lower- in turn causing more foreclosures and even lower prices. That also would have caused even more banks to fail.
We went thru all this in Texas in the early 1990′s. The Fed gov did not help us and let all the savings & loans collapse and builders fail and our prices spiral down to very little. It ruined us for a while and people went to prison and lots of people became homeless.
Several years later the house prices were much more affordable. I don’t know if that result was worth the horrible suffering that we went thru.
True, but if we don’t get the economy stabilized, then you may lose your job and be unable to pay your mortgage or rent.
Some of these people bought homes they could afford, but then lost their jobs, or the market collapsed and their home is worth far less than they paid for it.
Quite right too but lets look at another side. If we did not bail out the banks look at the amount of unemployment (dole payments) as the banks close what about our pension’s. All the money that was paid over 30 years in some cases gone forever. It is a pain but in the long term it is for the better.