What really gets me is that the financial institutions [U]and[/U] the Government who induced said institutions to give out loans to people who couldn’t afford them, are getting bailed out…while people like me and my husband who were responsible borrowers (i.e. we accepted only a THIRD of the equity loan mortgage which the bank was willing to give us, who did NOT get a house until we could secure a decent FIXED RATE mortgage, etc.) are going to be penalized by paying for the ones who unfortunately should have had to save a little more and wait a little longer (as we did) before they could afford a house.
I agree with Mason, jail time should definitely be figured into this!
Most importantly, Where is the penalization for those institutions who did the IRRESPONSIBLE LENDING?!? A borrower who was talked into getting a 110% loan on their $200K home, who now owes something like $190K on a house they now couldn’t sell for $115K??? That’s insane! I feel for someone in this situation, but again, you have to go back to personal responsibility. Not only to borrow what you can afford but also to get financial information/guidance from an unbiased 3rd party as to whether this was a good idea!
The lenders just sold them a bunch of bull and they were stupid enough to buy into it! All parties fictitiously assuming the property values would only go up!!! :wall: I’d say this falls under deceptive lending practices, which is, I believe a Federal crime!
I think a recession or depression is going to happen anyway (regardless of bailouts), and I think it speaks volumes to see that most Americans are FOR that as a correction to our markets rather than a badly thought out, badly managed bailout of banks in the guises of saving our economy.