Bailout driven by politics
POSTED: May 30, 2008
Both Republicans and Democrats in Congress are rushing to provide help to Americans who took out mortgage loans they couldn’t afford to pay off. Why? It’s an election year. Debating the issue too long and too objectively might cost votes.
According to The Associated Press, a plan approved by a Senate committee is intended to provide assistance to as many as 500,000 individuals and families who cannot afford the mortgages they were given. The bill would provide as much as $300 billion in new loans for homeowners who are struggling and cannot obtain fixed-rate, government-insured mortgages on their own.
Huh? Three hundred billion dollars for 500,000 homeowners? That works out to $600,000 each.
Don’t expect the vast majority of Americans, who stayed within their limits when buying homes, to like that idea.
On the other hand, do expect Congress to approve the bailout. Votes by the hundreds of thousands are at stake, after all. And it won’t cost lawmakers themselves a dime. Instead, responsible homeowners will be among those paying the tab — and, we hope, remembering that at election time.
Member Comments
View Comments: | 1-14 | Post a comment
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IKnooow
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06-03-08 12:59 PM
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My mortgage broker nagged me endlessly to take a mortgage three times the size I knew I could afford. If people don't have the brains to work out the potential hazards of ARMs, and get in way over their heads, then they deserve to lose their house. I don't want my tax money bailing them out.
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wirlwind
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05-31-08 7:43 AM
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Okay, I gotta do it. Bush caused all these people to make bad decisions.
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akaGaGa
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05-31-08 7:33 AM
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If both Democrats and Republicans are pushing this bill, and The Leader Herald recommends that we remember this at election time, does that mean we'll see an editorial supporting the Libertarian candidate? Yeah, right ... *******akagaga.blogspot****
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wirlwind
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05-30-08 10:05 PM
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No one blames Allen Greenspan. Go figure!
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ConervativeandProud
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05-30-08 7:41 PM
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I wonder how Cheney and Bush created this problem? This has to be their fault Right SNOW, LOYAL GoGIANTS??? Cmon they caused everything Where is the "HEY THIS IS BUSH"S FAULT " post?
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wirlwind
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05-30-08 6:08 PM
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This is just election politics. Only 4% of homeowners are defaulting on their mortgages. This is not a high number, but our politicians are looking for votes. Do you think this would happen in a non-election year?
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NewGloveRes
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05-30-08 4:21 PM
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The mortgage companies, appraisers, realtors and the buyers of these homes all had a hand in this catastrophe. The bailout is not only for the homeowner but for the companies. unfortunately if something is not done soon the credit market is going to collapse. There are plenty of people with good credit, good jobs and money to put down that cannot get a mortgage because the credit market is dry. The rest of us are trying to be smart and still struggle and these nitwits get a bailout. I blame the school board! Just a joke Commoncents.
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CommonCents
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05-30-08 3:54 PM
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blame the school...they must have had a hand in it.... and people have wonder why taxes go up...amazing
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teebzz
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05-30-08 2:35 PM
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AuntieKracker.. i heard if u give birth to 10 kids, DSS will buy u a house. lol
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slider
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05-30-08 1:33 PM
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You are all correct. I knew I should have bought that 500K house instead of using my head and buying one at 75K, one that I knew I could affort. Dang! Great lesson in fiscal restraint, buy high and wait for the government to use OUR taxes to bail them out.
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AuntieKracker
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05-30-08 1:31 PM
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. . . . wish someone would just buy me a house . . .
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SNOWGRINCH
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05-30-08 1:26 PM
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Who will be the ultimate winner from this legislation... The homeowner or the banks?
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wirlwind
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05-30-08 1:04 PM
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How can we teach adults to be responsible?
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morningstar
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05-30-08 12:58 PM
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I have to say that I am not happy with that idea. I bought a house in Gloversville, smaller than I would have liked, because I knew that I could afford the mortgage. While I'm not willing to lose my home to qualify for such an amount of money, it did enter my mind for a fleeting moment. Too bad. I don't know how this will really help in the long run. Teaching lessons like this one- that you don't have to be accountable for your own actions- seems so rampant thanks to all of our politicians. How can we teach our children to be accountable when these are our examples?
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