[Rockitz]

Once again our beloved government comes to the rescue of the irresponsible at the expense of the responsible.

[Balding_Eagle]

Banks forced by the US GOvernment to make loans they knew were risky, all in the name of diversity.

I had this discussion with my lib cousin last spring. This result was nearly inevitable.

[FoxInSocks]

Let those who made the idiotic decision to enter into a contract they would never be able to afford move out, and then sell the homes to reasonable persons at realistic market prices.

[saganite]

One word. Gold standard. Well, two words.

[RockinRight]

Actually, I’m OK with this, assuming the Treasury dept. didn’t actually pay the banks any money to do it, and it appears that they did not.

[Moonman62]

This plan has an appeal. It should help some of the victims hold onto their houses, while forcing the lenders to suffer some by living with their teaser rates for a longer period.

There you go.

[Toddsterpatriot]

In the early 1990s, greed and foolishness got the banks in trouble again, resulting in the scandals and losses surrounding the infamous savings & loans collapse. Congress formed the Resolution Trust Corporation (RTC), which protected bank depositors by taking over or closing more than a thousand S & Ls and failed commercial banks, at a cost to taxpayers estimated to be more than $600 billion.

Not even close to $600 billion. Not even $200 billion.

[Non-Sequitur]

It wouldn’t be a Bush administration without a bail out of some sort of financial institution. With his old man it was the Savings & Loans, now it’s the banks.

[Pelham]

The word on Friday was that the White House and the Treasury Department are negotiating with major lenders, including CitiGroup, Wells Fargo, Countrywide Financial, and Washington Mutual. The goal is to come up with a plan that would freeze (for up to seven years?) at least some of the low 'teaser-rate' mortgages lenders used to entice homebuyers into mortgages they won't be able to afford once the rates reset.

Tell them to wait!! I need a couple of days to withdraw all of the equity out of my house via a teaser rate ARM so that I can scam the system, too.

[RegulatorCountry]

I’m not sure what everybody’s wailing and gnashing their teeth about, here. This is just another form of forebearance, only writ large. Slowing the pace of foreclosure will allow the market to absorb more excess housing on the market, thereby supporting resale prices, and helping to prevent a colossal loss of personal wealth in this country. It also will calm a major case of jitters in financial circles, and will go a long way to help “unfreeze” the credit market.

So, this is far superior to any of the ill-concieved political “solution” rumblings coming out of Congress, imho. Even if there were to be some sort of behind-the-scenes injection of funding, it can’t possibly be any more costly than what has already occurred, as far as attempts to shore up the financial system.

[ArtyFO]

What percent of the bad loans are to illegal aliens who have stolen someone’s identity or social security number? 2003 is when the gubmint started requiring mortgage lenders to give loans to illegals with phony numbers and other nerdowells with undocumented incomes.

[Ghost of Philip Marlowe]

And the borrowers can’t claim ignorance.

They had to sign a thousand pages of informed consent.

[RachelFaith]

I sure as HELL do not want to pay the payments on a bunch of dead beats who can’t make their payments. Let the Banks Fail. Let the Economy adjust itself. No Socialism and redistribution of wealth from the wise to the greedy or foolish.