$700 Billion Dollar Bail-out Defeated!

[TexasShooter72]

It went down in flames!

http://news.yahoo.com/s/ap/financial_meltdown

[Splash]

Finally the Government did something RIGHT. What needs to happen, to fix the situation is for the mortgage companies, to bite the bullet and rewrite the mortgages at the actual value, with a FAIR FIXED interest rate. There's NO REASON we should have to BAIL them out, for THEIR CROOKED DEALS.  

[RainDog]

 As global shares fall. Just wonderful.

 Hey, maybe next time we have a political discussion I'll go all Mahonri on ya. THEN you'll be sorry! haha

 Ugh.

 Catch ya later, Matt. Gettin' that gettin' sick bad feeling. Cold, hopefully.

[RainDog]

 Oh, if it were only just morgages...

 What started out as morgages were, by the magic of "securitization," turned into bond-like securities; and in the process, many of the bad and even defaulted loans were transmaugrified into AAA-rated investments.

 While housing prices continued to rise, everybody was happy and there were few defaults. But starting a couple of years ago, when the housing bubble burst and the mortgage default rate shot up, a bunch of banks found themselves holding very insecure securities, losing money hand over teakettle. The crash began among the lenders and spread to secondary markets (the MBSs and CDOs) and even tertiary markets (insurance underwriters like AIG). In short order, institutions all over the world found themselves holding pieces of paper whose value was impossible to determine -- which are referred to as toxic assets.

 Anyway... gosh I feel bad.

 Goodnight, folks!
 Parks

[TexasShooter72]

Hang in there Parks!  Hope you get to feelin better...    tis the beginning of the cold and flu season.  You never know what's floating around out there.

On another note- the Dow was down 719 points but has now come back up to 562.  Gnarly day on Wall Street!

[TexasShooter72]

Next thing we'll see...   is the immediate removal of multiple members of congress(sound familiar?  Kinda like the illegal firing of Federal judges?).  Bush sounds ticked.  Wonder who's gonna come-out jobless?!?!

[nyairman]

Lets start with Pelosi, then comes Harry Reid, and Barney Frank, and while they are at it how about Charlie Rangel. How about Chris Dodd the # 1 recipient of kickbacks from Fannie and Freddy, and OBAMA is # 2 on this list. Obama has the least time in the senate and yet is #2 in recieving this money. How does this happen? I say get rid of them all and start fresh. These dinosours need to go and Obama needs to go with them.

Greg

[RainDog]

An e-mail from a Western-state bank president to National Review Online:

"The failure of the House to pass the bill – combined with the resulting bickering – will likely lead to a substantial market sell-off.  We’re seeing part of that occur right now, but we may well see much worse over the coming days as the inevitable sell-off hits overseas markets, followed up by another collapse at home as forced selling really kicks in and many institutional investors are required to liquidate their leveraged positions.  While it would be nice if all this was confined to a few select Wall Street bad apples, the reality is ordinary people will be hurt very badly as their investments deteriorate and the economic environment turns even more negative.  Unemployment will likely spike sharply from here, and the lack of available credit will impair many small businesses that rely on credit lines to finance their operations."

 http://corner.nationalreview.com/post/?q=ZGNiYmU2ZThhNTI1YjU4NjgxMjI3YmExZGU5OWU4YTI=

 Boy, THAT guy sure is a high ruiner. I'm bummin'!

 See y'all,
 Parks

[Jaymo]

Greg, I am inclined to agree with you.  Mike, remember that the federal gummint required the institutions to give mortgages to them what can't affode ta pays for Mansions. It was racist, after all, to only loan people an amount of money that they actually had the income to repay.
Perhaps government should stay out of business, just like they should stay out of religion.

[RainDog]

You better mind yer parents, an' yer teachurs fond and dear,
An' churish them 'ut love ye, an' dry the orphants' tear,
An' he'p the pore an' needy ones, 'at clusters all about ........
Er the Goblins'll git YOU .... Ef you Don't Watch Out !!

 Heh,
 Parks

[Splash]

Nope, it has nothing to do with that. It has to do with people accepting mortgages, with a variable rate, hoping they could resale for a profit and make a quick buck, but when their low rate doubled, or tripled, they got stuck.

[Big_Bill]

Jaymo,

Please delete your racial comments, they are against GTA Policies.

Poor people exist in every color, race, religion and nationality.

Bill

[Jaymo]

The folks around here who got stuck with interest only loans and the infamous ARMs weren't trying to resell. They were trying to live in a house that cost 5 times as much as they could afford.  I have friends who are real estate agents and brokers and it's amazing how many have moved into the suburbs from housing projects and section 8 apartments, gotten huge houses they can't afford, and never made a single payment, and cry about racism when they get foreclosed upon.
Bill, my statements may not be popular, but they are nonetheless true, and truth is often not pleasant. We are all going to pay the price for bad loans made to those who can't afford to repay, resulting from Federal interference because of the Al Sharptons of this country screaming that the lending institutions were discriminating against people who were a terrible credit risk.  Why should we have to pay for their mistakes? I live in a house that is less expensive than what I can afford because I choose not to live beyond my means. The irresponsibility of those who believe they're entitled to everything they see on TV is neither my fault nor my responsibility.  To tiptoe around the truth because of an irrational fear of offending those responsible for their own troubles is just not my way.

Just wait until the same thing happens with the credit card industry. That's going to be very unpleasant.

[CharlieDaTuna]

Jaymo.... you've got mail.... and you better read it. Also, I have modfified your responses.

Bob

[Gene_SC]

It is all about Greed gentlemen.. The more homes that a broker can sell the more money in his pockets.. And I personally do not think that those of us who pay taxes should  pick up the tab.

Just my two cents

Gene