Lower Principal on Underwater Mortgages to Market Value

[Kiva]

The lenders made two enormous errors:1  not doing due diligence and 2  not having the imagination to conceive that the collateral on the loan might go down in value.

A friend who is in the mortgage business openly talked about "liar loans" that mortgage companies were happy to give out to applicants without any proof of income.

[FayeforCure]

NN yes but isn't it typical of business in America nowadays that the big corporate banks have their losses mitigated by the government and the individual is told "your on your own".

But of course! Mom & pop, local biz, families & individuals in general no longer own the country, but the banks & giant corporations sure do though. Can't have them fail. Their money & influence goes a much longer way in Washington than Mom & Pop's & the rest of us pee-on's money does.

Oh, and if said individuals try to raise a stink, rage against the machine & walk away?? Yeah, that little system they've set up will eat them alive through trashed credit, garnished wages, lawsuits & all kinds of other fun stuff. All brought to you by the same banks that started the mess & got bailed out with taxpayer money.

We're all slaves.

Thank you, we have all become slaves to the system.

Mega Corporations (who run our government) want to privatize the profits, and socialize the losses.

[Kiva]

Mega Corporations (who run our government) want to privatize the profits, and socialize the losses.

Large corporations can afford lobbyists in Washington. Small businesses, and individuals can't. Guess who writes the laws!

[wsansewjs]

I have an advice for the People.

Watch V For Vendetta. Be inspired. Take BACK the government.

-Josh

[acme54321]

So it was all the lenders fault?  I guess the majority of the population of this country is too stupid to figure out how much of a house they can afford?  It's not rocket science.  I can't even believe that someone would fully blame the lenders on this one, it's almost laughable.

So you loaned money to a person that you knew could never pay you back?  And now you want to whine because of the unfairness of it all?

Maybe once.  Then shame on the welcher.

But twice?

How about millions of times?

Im sorry, no sympathy.  If they didnt have the sense that god gave a beetlebug and just kept pouring the money to people that they knew were deadbeats, then whose fault do you think it was, acme?

Why is it, literally-----according to you----- everyone else's fault except for the people who were responsible for loaning out other  people's money for their own commissions and profit?

I never litterally ----- said it was everyone else's fault.  Of course lenders were a huge part of the problem.  The other part of the problem were the millions of people that took out debts they could not realistically pay back.  It's not all home loans either, cars, boats, credit cards, etc add up fast too.  Borrowers need to act responsibly  as well.

[JeffreyS]

So acme54321  the lenders "a huge part of the problem" (as you state) are bailed out by the government.  The debtors "the other part of the problem"( as you state) should get screwed.

Am I understanding your corporate nanny position accurately?

[acme54321]

Jeffrey,  where did I ever say that the lenders should have been bailed out? 

[FayeforCure]

Jeffrey,  where did I ever say that the lenders should have been bailed out?

So then nobody gets bailed out and the economy crashes.

Government by no means should ever take corrective action to remedy economic ills (snark)

[acme54321]

Ok, so everybody should get bailed out?

[JeffreyS]

I don't want to sound like I know exactly how much bailing out we should do.  I just don't like the bending over backward for the corporations(what actually happened) and the "should have known better" speech for the families.

[FayeforCure]

Jeffrey,  where did I ever say that the lenders should have been bailed out?

Since you didnt say it, should everyone pretend that it didnt happen?

Yup, it's the stooooopid people vs the oh so smart mega-corporations.

If you keep dissing on the stooooopid people, you can avoid the real culprit of our economic woes.

[acme54321]

Jeffrey,  where did I ever say that the lenders should have been bailed out?

Since you didnt say it, should everyone pretend that it didnt happen?

That would make about as much sense as lowering the principal on underwater mortgages.

[JeffreyS]

Perhaps there should be a correlation between Banks that were bailed out and their debtors being made whole.  I know Bush's bail outs came with no conditions but I could sleep fine at night if we put them on retroactively.

[acme54321]

Going back and ready the OP brings up a question.

The idea is sound.  But what vehicle gets us there from we are at today, and what repercussions would there be?

[acme54321]

There is no benefit. 

All this talk is great but back at post one it doesn't specify how this plan would be carried out.  I don't think the attorney general can wave a wand and lower mortgage principles.  So what steps would be taken to make it happen?