Teeing Up the Next Mortgage Bust

New York Times ^ | May 19, 2008 | Editorial

[Lorianne]

In responding to the subprime mortgage crisis, most Congressional Republicans and many Bush administration officials apparently believe they have time on their side. They are wrong.

The housing bust is feeding on itself: price declines provoke foreclosures, which provoke more price declines. And the problem is not limited to subprime mortgages. There is an entirely different category of risky loans whose impact has yet to be felt — loans made to creditworthy borrowers but with tricky terms and interest rates that will start climbing next year.

Yet the Senate Banking Committee goes on talking. It has failed as yet to produce a bill to aid borrowers at risk of foreclosure, with the panel’s ranking Republican, Richard Shelby of Alabama, raising objections. In the House, a foreclosure aid measure passed recently, but with the support of only 39 Republicans. The White House has yet to articulate a coherent way forward, sowing confusion and delay.

[Lorianne]

Calling for more bailouts

[Psycho_Bunny]

"It has failed as yet to produce a bill to aid borrowers at risk of foreclosure"

And....that's their job?

[goldstategop]

Enough already! Free housing for every one! After all, liberals believe there's a right to housing so why don't they just come out and say it! Talking about a bailout is the proverbial camel's nose in the tent.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Ron in Acreage]

Why not bail out individual gamblers at the local casino as well?

A lot of these people gambled on the RE market and got burned. Tough $hit.

[bruinbirdman]

"Single-family-home prices dropped 7.6 percent from the first quarter of 2007 through the first quarter of 2008,"

Las Vegas prices are down 18%. My own house is down 20%. Odd, but I live in it and don't need to make a mortgage payment. It is worth 180% of what I bought it for in 2000, according to the county assessor.

yitbos

[Dazed_Catt]

“A lot of these people gambled on the RE market and got burned. Tough $hit.”

That’s how I feel too. If anybody actually read the terms they should have run screaming as fast as possible. They didn’t.........not my problem.

Unfortunately though the economy has taken a major hit...so it becomes my problem.

[Libertarian444]

The NY Times wrote this idiotic editorial for three simple reasons:

1. Higher home prices mean HIGHER TAXES - the NY Times loves that.
2. A government bailout means MORE REGULATION and CONTROL by the Federal government - the NY Times loves that.
3. By artificially propping up home prices via government intervention, the government can then “provide” (and CONTROL) more Americans who can’t afford the prices with taxpayer-paid “affordable housing” by TAXING THE RICH - the NY Times loves that.

[TC Rider]

Those in trouble sucked all the inflated equity out of their property. Too bad.

[x_plus_one]

It has failed as yet to produce a bill to aid borrowers at risk of foreclosure

Apparently the author thinks it is time for some serious helicopter money drops.

[Red Dog #1]

Very good list, but don’t forgot that talking down the economy helps the Democrats this fall.

[ColdSteelTalon]

And....that's their job?

If they can bail out private banks and lay the cost on the tax payer they can spread some of that around and bail out a few of its own citizens.

Wake up man ! the gubberment is bailing out whole countries and we are paying for it at the pump and with higher taxes.