Comments on: Blame Flies In Risky Mortgage Meltdown

Pressure Rises For Congress To Act As More Homeowners Are Unable To Meet Payments

[clarkssuppor]

This is a normal working of the markets. Let the markets adjust. If people lose a house, it will be very disappointing, but they will figure it out. Look at how our parents came back from WWII with nothing and made it. I have friends that went through bankruptcy and learned a hard lesson, but they are still alive today and better than before. No doom and gloom. People will be a little more saavy with their checkbook now and things will get back on an even keel.

[gkc99]

Between losing your home and your credit card debt, King George of Neocondom will have you right where he wants you--available for the draft he'll need when he invades Iran.

[standlee5]

Too many people using housing as an investment tool. They sold the farm, cashed out their retirement savings and bought McMansions thinking they'd make a killing in a year. Sorry folks, you loose. Now lets make sure these folks don't get credit and do it all over again. You either have money sense or you don't. Those that don't never learn.

[rharrin1]

alphaa10 said

Their seemingly blind and foolish worship of the unregulated economy to bring riches to everybody reminds us of Reagan.

It seems everybody has short memories because they keep putting republicans back in office. Then the same old problems arise again.

Remember keep republicans out of office.

[coffeehead-2009]

Gusmorino, Paul A., III. "Main Causes of the Great Depression." Gusmorino World (May 13, 1996). Online. Internet: http://www.gusmorino.com/pag3/great_depression/index.html. TODAY'S DATE.

[coffeehead-2009]

Those losses were only phase one...
What is the "blame" game on homeowners going to be when it is THEM being ignorant investors...?
It's called capitalism lassiez faire and it is back again and nearly complete - pure ~ economic class distinction. Rich / Poor -
the cycle remains when greed wins.

As production costs fell quickly, wages rose slowly, and prices remained constant, the bulk benefit of the increased productivity went into corporate profits. In fact, from 1923-1929 corporate profits rose 62% and dividends rose 65%10.

The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's administration (and the conservative-controlled government) favored business, and as a result the wealthy who invested in these businesses. An example of legislation to this purpose is the Revenue Act of 1926, signed by President Coolidge on February 26, 1926, which reduced federal income and inheritance taxes dramatically11. Andrew Mellon, Coolidge's Secretary of the Treasury, was the main force behind these and other tax cuts throughout the 1920's. In effect, he was able to lower federal taxes such that a man with a million-dollar annual income had his federal taxes reduced from $600,000 to $200,00012. Even the Supreme Court played a role in expanding the gap between the socioeconomic classes, the Supreme Court ruled minimum-wage legislation unconstitutional.

[zootallures2]

If you lose your house, you can always live in a barracks in Iraq or Afghanastan and fight the war on terror. As a matter of fact, the federal government can buy the houses and re-use the materials for the barracks and military equipment. It will be a great education for the whole family.

[alphaa10-2009]

barbaraf4 said, "How could this possibly happen? Bush keeps assuring us that the economy is just peachie. One of the indicators he frequently quotes is home sales."
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jwhitman said, "... Bush's 'Ownership Society & GOP's mantra of 'Less Regulation' is responsable.
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Less regulation was exactly the climate Grover Norquist and the Bush brainless trust advocated for the American market. Their seemingly blind and foolish worship of the unregulated economy to bring riches to everybody reminds us of Reagan. His era was also known for its greed and excess, and the same braindead mantra, "Less regulation, less regulation".

What these bozos meant was, "Leave us and our banking, oil and arms industry friends alone while we scour the market of all low-hanging fruit. The rest of you exist so we can make money. Trust us-- just... trust us."

And now we learn what liars, con men and brigands this GOP-led herd has turned out to be. Meanwhile, people who have their mortgage rates jacked up on them overnight are out of a home. The last time Americans can remember that happening on large scale was the Depression era.

[grazinggoat]

Now my friends give back yer house to the mortgage lender. Go live in multi-family dwellings and leave those houses to the bankers, to live in.

The savage hike in homes price combined with the transfer of well paid jobs to India and China resluted in such situation. Artificially fixed interest rates should not be a detrmining factor to you keeping your house or not. A home is a home. You can stay in it without having to furnish it.

Politicians and economist should seriously think of a strategy that housing interest rates should not be influenced by market inflation, and consequent adjustment... this is a necessity good and should be regulated. Consumable goods (furniture, cars, equipments)...could continue to be subject to adjustment by interest rates flutuation.

Not housing. Homes are too sacred to be subject to repossession.

[condumism]

The festering sore of the worthless GOP Congress of 1994-2006 will haunt the USA for generations to come. I do not approve of the USA coming to the aid of any homeowners ready to lose their house due to receiving too much credit from lenders. No bailout for these fools!

[rohink-2009]

I can't feel too sorry for people that tried to bite off more than they could handle. I agree with bellaL , but it's going to affect us all, not just the greedy lenders and ignorant homeowners that allowed themselves to be sold something that they couldn't afford.

[vancouverboo]

Who are we going to bail out, the greedy banks or the idiot borrowers? Let the banks fail? oh, but they're too important for us to allow to fail, so we will bail them out. That's sharing. The banks get the profits and the taxpayers get the loses. That's capitalism in America.
And how about the borrowers, who wanted to get rich on the housing boom, who lied in their mortgage applications, and who didn't have enough brains to see two years down the road.
Greed and Stupidity.
That's America.

[barbaraf4]

How could this possibly happen? Bush keeps assuring us that the economy is just peachie. One of the indicators he frequently quotes is home sales.

What a jerk.

[Syndicate]

Let it go to hell. Let the banks eat it. Sorry if that seems cold but these people drove the price up on houses to about twice what they were actually worth. A lot of people are going to be mad if they are not already as that $350,000 house slowly loses value. The banks are left with morgages that are more than the house securing them is worth. Glad I didn't buy anything. I've been waiting for the bubble to burst looks like its going to pop big.

[j-whitman]

Investigate the White House,, Bush's 'Ownership Society & GOP's mantra of 'Less Regulation' is responsable.

[bellal-2009]

Sen. Barack Obama called on Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson to convene a "homeownership preservation summit"


Uh oh, that sounds like a bailout. Let the homeowners AND the lenders go broke they are both at fault.

[bellal-2009]

I hope this isn't a prelude to a bailout. No bailouts. Regulation yes, bailouts no.