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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: TimF who wrote (144394)11/1/2008 4:38:17 AM
From: geode00  Read Replies (1) of 173976
 
There are home owners who were flippers, taking a known risk hoping to hit a home run before the bubble ended. There are other homeowners who were given fradulent loans encouraged by lenders and salespeople.

The problem in the transaction was the unequal level of risk of the parties. The homeowners would lose everything including their credit rating and any money they would have put into the home. They would be out a place to live, they would be up a creek.

The pros on the other side of the transaction would collect their fees, sell off the loan and the attendant risk. The pros had every reason to sell whatever they could to whomever they could.

Bailing out individual home owners would make what worse? People can't afford their mortgage. A huge number of homes are underwater right now which means the mortgage, not the home, is the problem. The government is in the process of sorting through home loans with Indymac customers. It is already in the process of bailing out individual homeowners.

(Iraq is about oil. If you are still confused about this issue half a decade into this debacle then I'm not sure what can be done for you.)

"but it has lots of government intervention, and much of that intervention is problematic."

What part would that be and just how problematic.

I stand by my vagueness comment. If you aren't going to support your arguments with any facts then you will simply have to admit they are your OPINIONS.
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