91 Responses to “STOP USING MY MONEY TO BAIL OUT GAMBLERS”

1. Comment by Dana Swan

   August 21st, 2008 at 10:56 pm

   Liz, I agree that having to be responsiple for your actions is an absolutely important for a free market to function.
   One point however, the money the Fed is going use for the bailout is not tax money, I wish it was. No, the fed will debase the US dollar AGAIN with imaginary fiat dollars, just as they have done with Bear Sterns and the rest. This flies in the face of ever ecomonic rule the Fed has (research what Greenspan said about this a 2 weeks ago!). this action is actually not legal. The Fed is using emergency powers reserved only for economic depression prevention. The Fed is inflating into deflation, a very risky bussiness….

2. Comment by Steve Klein

   August 22nd, 2008 at 12:43 am

   Liz, your saying what everyone else is thinking and the general news and politicans don’t want to tackle. This is what is killing america today. NO ONE, it seems, has accountability and those in power all seem to look the other way when their pockets are likely to be fed. The sad part to me is I don’t think there is a good way out. Eventually, these actions will catch up and the ’system’ will fail. Everybody will be hurting bad. Out of the ruin, hopes of a better future for all of us. Great article. Love the way you communicate the news.

3. Comment by Chuck

   August 22nd, 2008 at 12:55 am

   I could not say it better.

   There are choices and consequences of those choices.

   Congress wants to “fix” everything.
   Congress wants to “free” us from the consequences. And they want us to foot the bill.

4. Comment by kyle

   August 22nd, 2008 at 3:08 am

   Amen! Its nice to finally hear i am not the only person out here who thinks this bail out of gamblers is rediculous! How fair is it the guy/girl who puts salt on the french fries at the local fast food joint has a bigger house than me and a lower interest rate than me. Oh yeah, And i have to help him/her pay for it as well… What ever happened to living within your means? These are the same people who max out their credit cards and file bankruptcy every 7 years!

5. Comment by Dave Swiderski - Penn State University

   August 22nd, 2008 at 6:36 am

   Liz,

   This is a beautifully written article, and you speak for the majority of Americans who are fed up with our government’s excessive use of the governemnt “credit card.” The situation at Fannie and Freddie Mac is a perfect example of another misguided government policy, and the investors and taxpayers are once again left holding the bag. The securities of these agenices were at one time a very attractive investment vehicle for retirees to park their money and receive interest and dividend income; however, a few years ago, the liberals in Congress decided that people with poor credit and low income should have mortgages too and ordered Freddie and Fannie to loosen the underwriting standards so “everyone” could own a home. Well, we now see what is happening as a result. The funny thing is our elected leaders are pointing the finger at Freddie and Fannie for creating this mess when in fact it was their fault. This “nanny state” that our government has created will stop only when the American taxpayer has had enough and vote them all out. I seriousily doubt that is going to happen anytime soon…

6. Comment by Terry

   August 22nd, 2008 at 8:04 am

   Thank you for expressing a frustration that is being felt by Americans all over the country. When does this bailing out stop? In watching recent events, the government will not stop, and by not stopping, weigh all Americans down with a burden of “bailout” debt unknown in common history. Let the banks fail. When will “too big to fail” become “Burden too big to carry”? Thank you again for the courage to express your outrage.

7. Comment by Bob Witting

   August 22nd, 2008 at 8:27 am

   Liz,

   You are correct on all counts. What our government has done and continues to do will actually cause great damage to those of us who were diligent in our efforts to make sure that the contract we signed would not over extend our financial health. We have a broken system, no matter how you slice it, but further down the road, if one takes the time to investigate, the financial “train-wreak” that we are headed toward is staggering.
   It is really sad that as the darkness grows, neither our candidates nor our current government provide the real truth about where this country is headed, financially.
   Hopefully, the facts that I know to be correct, do not play out the way I think they will.
   Wishing everyone well and good luck!

   Bob

8. Comment by Michael H

   August 22nd, 2008 at 8:39 am

   I bought my first house last year and I had to supply about 100 pages of paperwork to the mortgage lender. Anyone who was buying a house that didn’t have to provide any paperwork or proof of income should have been smart enough to know something wasn’t right. If they signed the papwerwork anwyay, we should’nt have to bail them out. I understand why they want to bail out FM, but this economy has been artifically propted up by the government for decades now. It’s about time the fed lets the economy correct itself so we can move forward. How much do you think this is going to cost us considering the S&L bailout in the 80’s is at like 120 billion and counting..

9. Comment by Rita

   August 22nd, 2008 at 8:42 am

   Totally agree with you. It is exceedingly frustrating. And it is not only the mortgages these people couldn’t afford. What about the Beemer and Hummer parked in the driveway???

   We have a society of instant gratification. Twenty-somethings think they are entitled to the conveniences of life that it took their parents a lifetime to achieve. It is scary. At our house, we preach financial responsiblity to our kids on a daily basis! Maybe the silver lining is that people will take stock more readily when they go to make ANY purchase, let alone a big-ticket item.

10. Comment by mem

    August 22nd, 2008 at 8:43 am

    I agree wholeheartedly, but why don’t we hear more about this in the mainstream media? and what’s up with the CEO’s of these two behemoths? How did they get bonuses last year? Since when do we reward record losses? Think they should be the first to give back their bonus - just the first band-aid on the gaping wound.

11. Comment by Nick

    August 22nd, 2008 at 8:57 am

    You are SOOOOO right, but then this is symptomatic of the entire society that we live in. Personal responsibility is always mitigated by rationalization whilst the responsible rest of us pay the price.

12. Comment by Duane

    August 22nd, 2008 at 9:00 am

    Bravo!! you speak for millions of us. Let the deadbeats, lenders and investors suffer justly. Get this word out. Well done!

13. Comment by Mike

    August 22nd, 2008 at 9:00 am

    Nope you’re definitely not alone… I’m with you all the way and I couldn’t have said it better myself. Keep it up!

14. Comment by Ty

    August 22nd, 2008 at 9:14 am

    Liz,
    YOU ARE SO RIGHT! The idea of individual responsability is non-existant. Rep. Bachman calls it the punishment of the responsable.

    Thanks,
    Ty Peterson

15. Comment by Tripp

    August 22nd, 2008 at 9:26 am

    Of course you are right. However, in this age where we demand a nanny, instead of a government, those of us who work and save and plan are the ones who end up footing the bill for those that don’t.

    Another example of this is the estate tax. I go to work, pay my taxes, invest the money I save (and pay taxes on that too), and what happens? The majority is taken from my estate once I die. I did everything right, but it goes to pay for people who didn’t.

    Sometimes I wonder if we’re the crazy ones. In a society that punishes you for saving, for being responsible, and rewards you for being irresponsible, are we the stupid ones for still doing it the right way?

16. Comment by Eric

    August 22nd, 2008 at 9:46 am

    LC:
    Of course you have it right! The honest folks like you and me are making our mortgage payments on time and in my case paying more each month to pay it off early. Your Dad gave you sound advice and I have passed much the same thoughts to my red-head (albeit curly) daughter.

    There are two problems: First, the people running our financial organizations are not honest and have lined the pockets of our Senators and Representatives. This is not illegal, but it should be. As a result, outrageous laws to bail out Fannie Mae and Freddie Mac get passed. What do we do when the foxes are guarding the henhouse? This is directly related to the second problem:

    Americans are too busy watching American Idol instead of marching in the streets with pitchforks and torches and voting these guys out of office! The only people we have to blame are the ones staring back at us from the mirror each morning.

    Keep asking sharp questions and make sure the ones you interview give straight answers.

17. Comment by John B

    August 22nd, 2008 at 10:14 am

    Absolutely correct. It makes me want to go out and get a huge mortgage I can’t afford just to get some of this windfall the gamblers are getting. As a nation, we just need to stop bailing everyone out, take the lumps, and keep on going. It’s happened before and it’ll probably happen again. Continuing to build the house of cards ever higher may just result in a worse crash in the end.

18. Comment by chuck

    August 22nd, 2008 at 10:32 am

    Liz you’re not alone.
    Honestly I don’t like the idea of bailing out Freddie and Fannie let them plummet in the free market place. Like the documentry IOUSA I believe it’s time for a film/video documentry on the houssing downturn and the subprime mortgage debacle to see how it all got cause. But like you I don’t like the idea of bailing these GSE’s out. Is this going to quadruple the national debt now? But the leaders of these GSE’s need to be disciplined. But these mortgage banks in my opioin need to suffer like thier sister banks in the fanicial sector. Cody W. and I we don’t like baiiouts becouse throwing money at a problem doesn’t nessecerrily mean u solve it. Becouse it’s not going away. Question did they play with the mortgages on the stock market too like thier sister banks?
    I believe thier should be expose on Frannie and Freddie which explores thier background how they were created and why. Becouse if thier history is out in the open and then one get better grasp of their problem and how they got into this problem. But hoenstly let these GSEs fail in the marketplace becouse they deserve it and the public is in no mood for another bailout. I stand by my words.

19. Comment by Al

    August 22nd, 2008 at 10:47 am

    It hurts to see those crying over their home loan,
    sitting in their living room with the 60″ palsma
    TV, custom furniture, and fire place.
    I agree with you liz, if you cant pay for it,
    you shouldn’t buy it.

20. Comment by Justin

    August 22nd, 2008 at 10:57 am

    Where’s the money going to come from? There is no money to bail these GSE’s out. Money will be created as debt. The government will issue worthless t bills for the “federal” reserve to purchase with money the create by making a simple book entry into their computers. Welcome to fractional reserve banking. The Creature From Jekyll Island. Must be great collecting interest on money created out of thin air. Where do I buy some federal reserve stock?

    Get rid of your paper dollar “assets” now while they still have value. Trade them for actual goods, services, and items you can barter with. The only way the government can make good on it’s debts is to print money.

21. Comment by Rob

    August 22nd, 2008 at 11:10 am

    Liz, This Green-eyed boy agrees, 100%

    Uncle Sam where was my hand out when I was living on pork & beans and pbj to get my mortgage payed off??????? Hey I’ll even take it retroactive please.

    All these bail-outs are going to do is create a bigger problem when the next big get rich scheme comes along and wall street and those that feel cheated again scream for help, and poin to this as presedence.

    My thoughts,Rob

22. Comment by Steve

    August 22nd, 2008 at 11:58 am

    Yes Liz, you have it EXACTLY right!

23. Comment by Jan Scales

    August 22nd, 2008 at 12:17 pm

    You are absolutely right. What ever happened to “common sense”. Our politicians, both Dems and Repubs have been 100% worthless, to say the least. We MUST vote all of them out of office, the American people have to take back this country. We are NOT represented in any way, shape or form. This must stop. Socialism, here we come. Unless……unless the American people rise up. Both Obama and Mc Cain are useless in this battle. Obama would no doubt, do the most harm….Keep blogging.

    JMScales

24. Comment by RJ

    August 22nd, 2008 at 12:48 pm

    Amen.

    Geez, I should have signed a stupid mortgage and have the government buy my house for me.

25. Comment by Bob

    August 22nd, 2008 at 1:44 pm

    I am equally frustrated by all of this. The is not a partisan issue - it is a total failure on the part of all of our elected officials.

    The worst of it is that by rewarding this behavior we are ensuring that it will be repeated.

    I do have some sympathy for the people who got in over their heads with a loan they can’t handle. The problem is that the bailout will not help them.

    We also had to submit evidence to verify our assets and income before being approved for a loan. I would hesitate to borrow from a lender who didn’t ask for that documentation. And I wouldn’t borrow any where near the amount they tell me I am qualified to borrow.

    I think the best thing we can do is stop re-electing career politicians. We should stop voting for anyone who has been in an office for 2 terms.

26. Comment by Alvin Anderson

    August 22nd, 2008 at 2:25 pm

    I agree it is so aggravating to experience and it is to wonderful to hear someone articulate my thoughts and felling.

    You Rock!

27. Comment by Steve

    August 22nd, 2008 at 2:32 pm

    I agree with you completely! This is yet another example of “the Big getting Bigger and the Small getting Smaller”, this time with the tax payers help. Our government feels the need to “bail-out” the big boys on the block and do minimal for the small. Our system would actually work if left alone. The housing market was a “bubble”, most of us already knew that at the time. It was obvious that this country could not sustain the appreciated values that were happening, we just didn’t know when it would come to a stop. The responsible (lucky) ones just kept doing what we do, pay our bills, pay our taxes and take care of our families. The irresponsible ones (unlucky) were looking to make a “quick-buck”. Capitalism is a wonderful thing, we have a lot of smart people in this country, if we allow capitalism to do what it does without complete government intervention we WILL find our way!

28. Comment by Rick

    August 22nd, 2008 at 2:35 pm

    This is spot on. My wife and I made the same heart thumping decision seven years ago. We bought far less house than most of our peers and friends. This mortgage meltdown mess is a joke. As usual, people are rewarded for irresponsible behavior.
    Signed,
    Bohica

29. Comment by damon

    August 22nd, 2008 at 2:40 pm

    liz your right too many people got greedy knowing they couldn’t afford these houses but everyone else will bail them out

30. Comment by Boom2Bust.com

    August 22nd, 2008 at 2:41 pm

    You go, girl! Couldn’t have said it any better myself. From Nobel Prize-winning economist and Columbia University professor Joseph Stiglitz:

    “What bothers me from the point of view of public policy is that Freddie Mac and Fannie Mae came to the American taxpayers, asked for the right to write a blank check and Congress gave them that right.

    What should have happened was corporate reorganization, keep the companies going but not protect the management, the shareholders, not even protect the creditors… The whole basis of a market economy is a system of accountability. You make decisions, you take risks, you get the upside, but you also take the downside.

    These guys that are supposed to be assessing and managing risks have repeatedly failed and I think that’s what we really have to get our minds around. The fact that we had such confidence in these gurus of the financial markets… We turn to them about how to fix the system, but these are the guys that broke the system.

    The amount of potential liability that we undertook when we passed that bill with that blank check- we just don’t know. This is the worst kind of public irresponsibility.

    “Quote For The Week”
    Boom2Bust.com, August 11, 2008
    http://www.boom2bust.com/2008/08/11/quote-for-the-week-27/

31. Comment by Jorge B

    August 22nd, 2008 at 2:44 pm

    Liz I agree with you and I’m one of those who gambled and lost. My condo in Orlando is worth less than half of what I bought it for. The government bail out of Fannie and Freddie goes against everything the free market and capitalism is all about. I’m going to take my licks and move on and your dad like my dad advised me not to invest as I did. It’s not fair to those that are truly end users and those that stayed out of this mess now get to pay for our misfortune. Why should we get a “mortgage do over” when speculators (investors) like myself knew exactly what we were getting into.

32. Comment by Don Thornton

    August 22nd, 2008 at 2:56 pm

    You are right on. Here’s another part of that puzzle that’s even more unjust. If a borrower takes the bailout it requires the agreement of the lender. The lender must write the loan down to 90% of the current appraised value. The Federal Housing Administration (FHA) will insure these loans as to default and the loan covenants provide for FHA to recover any future profits, on a sliding scale with a low of 50%, if the borrower resells or refinances the mortgage. After 5 years that drops to 50% and stays that way. The borrower also pays a 3% exit fee. Now I have no problem with that, it seems fair, if there has to be a bailout.

    But here’s the rub. We are also “bailing out” Fannie Mae and Freddy Mac AND their shareholders– WITH NO RESTRICTIONS. First off, the shareholders should not be bailed out, I wasn’t bailed out of my Enron stock, I took a large loss. But at a minimum, the same payback for future profits should apply and that’s just fair, period. Without the bailout, these stockholders loose it all, the agencies are broke. The stock will rebound with a bailout so why not the restriction. The old stock could be required to be redeemed for a new restricted stock so when it does sell, it would be tagged to share the profit with the agencies bailing the holder out, namely, us citizens. Just shows how the government works, they don’t really care about the small guy, just the large corporations and their shareholders.

33. Comment by Karen

    August 22nd, 2008 at 3:06 pm

    I wrote to both my Senators (NJ) and my Congressman with the exact same message. No response from any of them… I wonder how they voted?

34. Comment by Massimo

    August 22nd, 2008 at 4:08 pm

    I mostly agree with you , but I rather pay some extra taxes than see this country going down the drain . At the same time what I would like to see , is to make those CEO ’s accountable for creating these problems while at the same time receiving some good salaries ! Liz , when was the last time you signed a mortgage ? I mean when was the last time you signed 5 pounds worth of paper ? As a good Italian I rather sit with my friends drink wine and play bocce ball !!! The all industry needs to be regulated .

35. Comment by mark

    August 22nd, 2008 at 4:30 pm

    I fully agree with you! I bought my first home in 1996 and had to prove where every nickel i had saved came from, I was 32, a college graduate, years at the same co., Zero debt of any kind and they still wanted more proof. In 2003 at 39 years old i bought 3 new single family homes side by side in a new tract as a LONG TERM investment (my retirement). To get prepared to present my case for 3 loans from my bank, i prepared a short business plan with my management experience, the local economic growth of the area i wanted to buy in etc. I was approved and given a letter of credit to show the builder and they took my deposit. I could have put a minimum down and taken one of the teaser loans to make my life easier in the short term but i didnt. I put 20% down with 30 year fixed loans on each home to prepare my self for any down turns, as with this much down, my rents can be at apartment prices yet still pay the mort.,taxes & ins. I was cautious and now it is paying off. my homes stay rented, generate cash each month and will be something i can pass on to my daughter years from now. Some may call me a “speculator” i call myself a long term property investor. I applied this same thinking to a new home in a 55 and older retirement community in northern Arizona and I will wait for the Boomers to migrate. I live in a very wealthy town (Yorba Linda CA) but i dont drive a leased BMW/Mercedes but a 2 year old Taurus i paid cash for. Some might think this sounds like a cheap/tight way to live but i also own a 69 Corvette, 79 Trans Am, 05 F-250 all paid for! For those that buy more than they can realistically afford to look big to their freinds and family, i say, you get what you deserve and dont look to me and my taxes to help you out!

36. Comment by Skip Hansen

    August 22nd, 2008 at 5:50 pm

    AMEN to your article “STOP USING MY MONEY TO BAIL OUT GAMBLERS”. I had the unfortunate experience of buying a house in Delaware about a year after the credit card laws had changed, and all the banks were moving people from NY. A $243000 investment, with $25K more in “improvements”, and ended up selling 10 years later for $193000. No one offered to bail me out. And while I’m at at, if we are to bail out Freddie & Fannie, how about firing their execs, and replacing them with lower paid ones that will actually pay attention to what is going on.

37. Comment by Rick La Pointe

    August 22nd, 2008 at 5:52 pm

    Dear Liz:
    Oh where to begin as to your question “Do I have this right?” My version of the answer is: “It’s complicated”.

    Yes ..people should buy as much home as they can afford, make their mortgage on time, and in general handle all their financial obgligations in a responcible manner.You a very fortunate person, had an excellent educatio,and parents that took the time to instruct you on the real world. Most Americans do not live in the same world as you, a large percentage of them are one or two missed pay checks from the street.

    People in America are told from a young age, that the American dream is to own a home, in most cases that it will be their biggest and most money making investment of their lives. So in 2002 when Alan Greenspan and GWB went into this Faustian agreement to use housing values to stoke the fires of the econoomy, and turn their backs on predatory lending practices, many people took the path of least resistance (human trait) and took a chance they could swing it…hell they somehow swing their credit cards.

    Liz stop for a minute THINK when 1/10 of 1% of the population holds over 50% of the wealth of the nation, who is at fault here? Perhaps your vision has been bent from too much time on the STREET, not enough with just plain folk. Get back in touch with Jim Crammer, he talks to real people out there every day.

38. Comment by Karey

    August 22nd, 2008 at 6:42 pm

    I purchased my home in 2005 which contained an introductory rate of 5.75% and then on January 1, 2008, my first mortgage turned into an adjustable mortgage. I qualified for the loan based on my income and I too, provided enough paperwork and backup information which nearly broke my copier!

    On January 1, 2008, my loan adjusted with an increase of approximately $800 a month. That’s an increase that I cannot afford. Yes, I read my contract and understood the terms however, I expected the market at a minimum to remain the same and then, I would be able to re-finance my loan into a fixed rate at 6.5% prior to January 1. That is the gamble that I took and at that time, the risk was next to none.

    I believe the mortgage companies gave loans to individuals without verifying their income (stated rather than full docs) or to individuals who over extended themselves on full doc loans. In my community in Corona, California homes began going into foreclosure before the rates began adjusting which from my knowledge, is what caused what I call Phase 1 of the mortgage meltdown. Literally, 6-12 months after the new homeowners moved in, foreclosures were appearing, approximately 10% of the homes in my development. Bad loans were made from day one! Was my loan a bad loan? The answer is no. My income could clearly afford the payment, but my income could not afford the $800 a month increase. The way I see it, the lenders who made bad loans to people who couldn’t afford it to begin with, started the down poor. If those loans were never approved, the real estate market would not have crashed and people like me who are in what I call Phase 2 could have refinanced their homes.

    I retained an attorney for $500, paid my lender $1000 to do a loan modification and no where during the process did they disclose that additional fees would apply. They gladly took my $1000 dollars. I applied for a loan modification in October of 2007. I called my lender every week (sometimes more often) asking questions, asking for an update etc. I was relentless with my follow-up. None of my phone calls were returned. Eight months after my initial inquiry and submission for a loan modification, I received the paperwork and my lender was requiring me to pay an additional $4000 and submit the monies to them within 5 days after receipt (essentially 1%, like a loan re-fi). I did not have $4000+ readily available to submit to my lender in 5 days. If they informed me of this requirement when the process began, I could have been prepared for this expense.

    In addition, after seeking legal advice and researching the various options including bankruptcy (chapter 13 to keep my home) or a short sale, it was determined the best solution for me is to allow my property to go into foreclosure and my credit will recover in 2 years. Lenders have no recourse to collect any debts from a homeowner whose property becomes bank owned. My remaining credit history is immaculate! I have no incentive to do a short sale, since I refinanced my 2nd mortgage in 2007 into a fixed mortgage and cashed out approximately $10,000 to pay off other debts. Therefore I would not qualify for the Bush plan approved in Dec of 2007 since a 1099 would be filed against me for the deficient balance and I would have to pay 30% in taxes, approximately $50k.

    Therefore, I am turning over my property to the bank.

    I do agree that we should quit bailing out the lenders. I’ve made my bed and am now lying in it, so should they!

    Lastly, any bailout approved by Bush for homeowners might help .01% of the population in this situation. Primarily the bailouts are assisting the lender. The time that President Bush has spent on such bailouts, provides no value to homeowners. So all of you whom keep complaining about such, please, just stop whining.

    P.S. I was interview by Fox Business news and how naive was I to think my lender was on my side. Now I am selling my appliances on Craigslist to recover the $1000 I sent my lender, who falsely mislead me throughout this entire process.

    Excitingly enough for me, my new home (as a renter) is larger, nicer, brand new and less expensive than what my mortgage was in 2005!

    Sincerely,
    A prior homeowner who was ticked off and now quit happy!

39. Comment by Fred Logan

    August 22nd, 2008 at 7:48 pm

    Do I have this right? Let me know what you thing, gang, and thanks so much for watching. I’m so grateful you’ve joined the Fox Business team.

    OK, this is what I thing:

    We have found ourselves in a whole new values paradigm. Unconditional tolerance, diversity, absolute equality, license, entitlement, self-esteem, etc, have magically replaced our old principles of honesty, industry, fidelity, liberty, humility, etc. Now you were too young but I distinctly recall that those old rules were accompanied by signs and wonders. What has validated these new commandments?

    But, ironically, the FoxBusiness page from which I linked to your blog had the following ad:

    Mortgage Rates at 5.65%

    $200,000 loan for $771/month. See New Payment - No SSN Rqd. Save Now!

    Refinance.LeadSteps.com

    You keep up the good work though, and keep fighting for the folks. You may guess that I’m not a real fun kind of person but you and Brian have had me laughing out loud the passed two days. I think you two have the best chemistry among all of your fantastic colleagues.

    Thank you and warmest regards,

    Fred Logan, Palmetto, FL

40. Comment by Michael

    August 22nd, 2008 at 8:46 pm

    I agree. But you know the government is going to throw billions of tax dollars and tell us it is in our best interest.

41. Comment by albert jacobs

    August 23rd, 2008 at 12:00 pm

    I agree 100% with this article. I also think Liz is the best .

42. Comment by Rick

    August 23rd, 2008 at 12:09 pm

    Like you, my wife and I were nervous about signing on the dotted line. We took a mortgage for roughly half of what they said we qualified for. Now I am disabled and still have never been unable to make the payment.

43. Comment by Patrick Kellogg

    August 23rd, 2008 at 6:00 pm

    I agree 100% with you. My wife and I are very careful with our money and live a modest life. We have no debt other than our mortgage. We live very much beneath our means. Why should people who overspend and overextend be bailed out?

    Some articles I have read have actually put the blame on Fannie and Freddie. If loans had not been so easy to get in the first place, we would not be in this mess. Let them fail, it may be painful but it’s just not fair to leave all this debt to our children.

44. Comment by deano, Peoria, AZ

    August 24th, 2008 at 11:42 am

    I couldn’t have said it better. My wife and I have gone through 5 houses in our lifetime before retirement. We went through the same process you mentioned; it seemed like endless pounds of paperwork. But it always came down to decisions on affordability. In all cases, we made sure we were never over-extended, regardless of the promises by developers that value of reality would always appreciate. In this world today, immediate gratification seems to be the only important goal. We always wanted a home, but rented until we could afford to buy. So, yes, bad financial decisions should have to pay for their mistakes.

45. Comment by Claude Ames

    August 24th, 2008 at 1:23 pm

    Liz, agree with you. No one was there to bailout WCOM when they went under. I was an MCI middle manager before Worldcom took over. I retired before the takeover because I did not like WCOM’s business culture, my 401K was looking great, my house was paid for and I had no debt, by the way I was 52 years old at the time. Needless to say I didn’t follow my gut fellings about WCOM and I held the converted MCI stock until the bitter end. Lost a lot of money, but had enough other holdings in my 401K to make it to retirement age without having to get back into the work force. I set up and on line trading account and have done pretty well, not great but well.

    My point is no one ever cared about my investment in WCOM and never will. I just wish Bernnie Ebbers had received more time in jail. He severly damaged a lot of peoples lives.

    I hope Fannie and Freddie executives go to jail for being so greedy and stupid. As Ron White says in one of his comedy routines, “you cann’t fix stupid”. I say he is correct, but you sure can punish the stupid crooks. As for the stock holders of Fannie and Freddie, oh well. Teach you to depend on the government!

    I didn’t the the mortage problem comming and now I am caught holding stock in C and WNB. The regional banks have treated me well, but the big greedy banks have hurt.

    The trading enviroment today drives one to become a day trader, or at least a “I’ll sell that stock as soon as my return surpasses the dividend.

    Regards
    Claude Ames

46. Comment by M.B.

    August 24th, 2008 at 5:38 pm

    Liz, I totally agree with you ! When my husband and I were shopping for a house, we didn’t even look at neighborhoods that were too expensive. Some people think they DESERVE THE BEST of everything, especially if they can get someone else to pay for it.

    So we sit here in our working-class neighborhood and help pay for someone to stay in one of the fancy neighborhoods that we didn’t look at because we couldn’t afford it.

47. Comment by Sharon

    August 24th, 2008 at 6:54 pm

    Thank you!! I feel the same way. I was also taught and believe that one should not live beyond one’s means. Why should I be punished for doing the right thing while others get a bail out? A growing problem in this country is that no feels they should suffer any consequences from their actions.

48. Comment by John Coviello

    August 25th, 2008 at 8:35 am

    It’s time for all this to come to an end. If we do not stop it and the “Creeping Communism” (forever taking from those that have and giving to those that don’t) that the liberals are perpetraiting on us - we will soon have nothing left to show for running the good race. And this includes supporting those who insist upon living below sea level at or near the oceans edge; and behind dirt walls trying to keep the water away, over and over again.

49. Comment by John Catlin

    August 25th, 2008 at 8:48 am

    Liz - You are quite right. However, it’s not just the mortgage lenders, though they are certainly co-conspirators. The guys that were creating and selling mortgage backed securities participated in process in order to feed the investment market….though Bear Stearns and, perhaps, Lehman paid the price for their transgresson. Sub-prime, sensibly done for the right reason, had a legitimate place in the mortgage market. As we all know, those standards were passed early on. When they coopted to create NINA (no income/no asset)mortgages as “collateral”, surely a bell should have gone off in Washington.

    If you are “too big to fail” or the primary source of mortgages, then you may become reckless and conclude that it is right because you are doing it. While I am not a fan of unnecessary regulation, Fannie and Freddie have certainly proven, beyond the shadow of a doubt, that they warrant much closer oversight.

    As far as the man on the street paying the butcher’s bill, it is the American way. Whether it is economic stimulus, ear-marks or regulatory oversight, our Congress seems to believe that there is no problem too big for our money to solve. -John Catlin

50. Comment by Susan B.

    August 25th, 2008 at 11:17 am

    A standing applause for your attention to this subject!! Outrage is too mild of a word to describe my feelings about this! My guess is that you have not had more of a response to your article because most of us are too busy working overtime just to be sure our mortgage payment gets made.

    I wonder who will be the next to be bailed out? Once that faucet has been turned on, it will be awfully hard to turn off. And when the well runs dry, it will be our children and grandchildren (who can’t even pronounce the word “mortgage” yet) that will be paying for all of this.

    If Americans choose to sleepwalk thru their lives, they will be waking up to a very different country than the one they remembered.

51. Comment by R Morris

    August 25th, 2008 at 11:24 am

    I can’t agree anymore! My wife and I waited for nearly 11 years before we were able to afford to buy a home on one salary (mine), even though she was working at the time. That was nearly 24 yrs ago and we still live in the same house. Our government is tp prone tp bailout companies and individuals. What’s wrong with “losing” your home if you know you can’t afford the mortgage? Take the loss and chalk it up to experience and rent until you can afford to make the mortgage payments; buy what you can afford! As for the companies who made these ridiculous loans, they should be allowed to go bankrupt, regardless of size. As Oliver Hardy used to say to Stan “Now let that be lesson to you”.

52. Comment by Rob

    August 25th, 2008 at 11:29 am

    I couldn’t agree more Liz. This is corporate welfare at it’s finest. The government imposes their will by taking our tax dollars and spending them erroneously. They appoint unqualified officials to the Fed Reserve. Then they use more of our tax dollars to bail out the people who screwed up, and leave the average citizen in financial ruin. Why is it when Steve Forbes comes along and says we need a flat tax, he is brushed aside??? The American People like being screwed. Why is anyone even considering voting for Obama or McCain??? How is congress still around???

53. Comment by Old Timer

    August 25th, 2008 at 12:58 pm

    Liz:

    The Golden Goose is off it’s feed! Congress has to do what is necessary to keep the goose alive. The congressmen need to keep their source of golden eggs from drying up.

54. Comment by Heath Buckner

    August 25th, 2008 at 1:38 pm

    I could not have said this better myself. Great job (by the way, you sound like a good fit for a supporter of Ron Paul’s new Campaign for Liberty).

55. Comment by nelson pangburn

    August 25th, 2008 at 2:46 pm

    i agree that the bailout is like helping the people who go to vegas and then cry

56. Comment by Karen

    August 25th, 2008 at 3:19 pm

    I couldn’t agree more! In fact, I wrote to my senators and my congressman before the vote was taken with the very same message. None of them responded. I wonder how they voted???

57. Comment by Bobby T.

    August 25th, 2008 at 3:21 pm

    Amen, Amen, I couldn’t have said it much better myself. I am sickened to think that I did it right and am almost fininshed with my mortgage while people who spent more than they make will get a ‘reduced ride’ deal on my hard earned buck. The shady mortgage writers are the ones that will really walk away with the fat wallets. Man, can someone tell me where to get a “no risk brother-in-law” deal that the Government will sign for?

    Frustrated for doing it right….

58. Comment by BOB BETHUNE

    August 25th, 2008 at 3:55 pm

    AS A REALTOR,I AGREE WITH YOU THE PREDATORY LENDERS WERE FALLING OVER THEMSELVES TO FINANCE AN OVERPRICED HOUSE TO A UNDERQUALIFIED LENDER. HOWEVER REMEMBER IT WAS OUR GOVERNMENT WHO DECLARED THEY WANTED MORE HOMEOWNERSHIP,MORE PEOPLE,REGARDLESS OF THEIR INCOME TO HAVE A HOME. HUD WENT CRAZY OVER GETTING RID OF THEIR FHA BACKED FORECLOSURES. MORTGAGE LENDERS ALSO WENT OVERBOARD,CREATING 100% LOANS,80-20 LOANS,ARMS.NO,I DONT WANT MY TAX DOLLARS BAILING OUT THE MORTGAGE INDUSTRY,OR THE INCOMPETENTS IN GOVERNMENT. LET THE FORECLOSURES CONTINUE.

59. Comment by ray porter

    August 25th, 2008 at 4:04 pm

    Liz, love fox and trying to get into Fox Bus and you do great, but you just had a young lady on your show that reported on LDK and solars in general and said to the effect that you gotta take profits on these. Excuse me, isn’t she a reporter? Advice from experts is expected and we can take it for what it is worth, but extraneous comments like this are not appreciated. Yes I’m long LDK and trying to make money in a down market, but either way I’m sure not going to act on her “advice”
    thanks for your great work
    ray

60. Comment by Charles Kodak

    August 25th, 2008 at 4:23 pm

    Liz,

    My wife and I watch you daily, and like you we are ripped by the thought of bailing out Fanny and Freddie let alone all those ingrates who walked into debt with their eyes wide open.

    We have mortages on two homes, make our payments and pay our bills ontime and on retiremnent income. I do not regret our actions and ask no man to carry our load. We trust God for all that we have.

    You are right on and we praise you for standing for us little guys.

    God Bless, Charles and Janalee Kodak

61. Comment by woody

    August 25th, 2008 at 4:25 pm

    I’m with you 100%. If I’m not mistaken it was the Government that was pressureing lenders to make it easier for buyers to obtain mortgage loans. But if you think about it it’s the Government that causes most of our problems anyway, just like the energy problem,you can’t drill here and you can’t drill there because of Govt. catering to environmental extremist. So now instead of doing the senseable think like drilling offshore or in ANWAR they would rather hope for some pie in the sky to pop up out of thin air.

62. Comment by Louise Jones

    August 25th, 2008 at 4:38 pm

    You are right on!!! Keep up the good work!!! We all love you here in Texas!! Louise

63. Comment by Jillian

    August 25th, 2008 at 6:30 pm

    Liz, I was wondering where you were! Now I know!! Can’t get Fox Business in the Chicago area yet, but glad to see I can see your compositions here! OMG, I couldn’t agree with you more!! This scenario makes me want to scream!! Seems that doing things the wrong way, sans integrity gets you rewarded in this country! Unbelievable. I still cannot in my wildest dreams believe that we are bailing out these reckless spenders. It goes against everything I’ve ever been taught! The world, my friend, it is a changin’!
    BTW, you have one of the prettiest and most sincere smiles on TV!!

64. Comment by Bill Turner

    August 25th, 2008 at 6:36 pm

    Liz -

    You are on the right track. Much of the credit for the mortgage “armegeddon” should go to the various Federal “regulators” that to a man failed to regulate anything. Given no controls, people tend to become pigs. There was a lot of oinking going on among the builders, mortgage originators and I suspect among the Regulators as well.

    Plenty of blame to go around on this matter. We should not forget that a good deal of the blame should be placed on the Administration in Washington.

65. Comment by Brian

    August 25th, 2008 at 6:53 pm

    You are so right Liz, this is infuriating. You stated it exactly the way I’ve been thinking. It is very frustrating that the Congress is a runaway train acting in ways to control our economy in a socialist manner rather than letting it run itself with free market mechanisms for determining outcomes. Thanks again for your lucid writing and another great piece!

66. Comment by Ray

    August 25th, 2008 at 9:01 pm

    Thank you, thank you, thank you!!! It’s about time someone spoke the truth. Thanks to the sub-prime lenders (Fannie, Freddie and the lot), the asking price for homes in the Northern Virginia area are still 20% more than what the house is truly worth. However, they are getting better now that foreclosures are competing with people that thought they could make a quick buck a few years ago and flip their property. It’s absolutely crazy for mortgages to be two to three times that of the average rental price for the same home. I agree that people who have lost their jobs or have fallen on hard times, that entered into a mortgage in good faith, should be helped. And those who were looking for a quick and painless buck (the flippers and sub-prime lenders) should just suck it up ‘cause I don’t pay for other people’s mistakes or gambling habits….

67. Comment by Pat

    August 25th, 2008 at 10:28 pm

    Couldn’t agree more. But it will happen: many people were stupid/lazy, and now the Dems and Reps are racing to buy their votes with the money of those of us who “underbought”, saved, pay off our debt, and are getting quietly steamed watching our paychecks being targeted by the parasites.

    Maybe that’s the “change we can believe in”: what’s left of my paycheck after the government punishes me for being productive by taking what I worked hard for (12-hour day today, 11-12 average, and yes a good income that I sweated for and am proud of) and giving it to people in hock for their plasmas, McMansions, and Escalades.

    - Very angry about it and may well vote for Bob Barr

68. Comment by Joe

    August 25th, 2008 at 10:37 pm

    I agree, my wife and I went through the same preparation and bit the bullet on a 15 year fixed rate loan. Yeah it was a tough decision but now it will be paid off just as our eldest heads off to college. To bail out these two particularly when they were warned about how risky the loans were, that the formula they were using to rate the loans was flawed, and yet they continued to do it for 2 more years knowing full well that they were likely to be lost to default! They don’t deserver to be bailed out particularly by taxpayers! If anyone should bail them out it should be the banking industry/regulators/insurers that let this happen. Hold all of them personally liable and take their 8 figure bonuses for the past 5 years as a start!

69. Comment by M Lemo

    August 26th, 2008 at 2:05 am

    I agree with not wanting to bail out gamblers. But lets be honest about what the real crisis is in the mortgage industry. Its not entirely the borrowers fault.

    First lets examine the greed of the bank. We’ll give you this money to live in this house on the condition that we can change the game whenever we feel like it. This is called an adjustable rate mortgage. Bad for everyone.

    Second. The houses starting gaining in value so here comes the local county, and city, and every other little picky younie squeeb that can put pen to paper to double your property taxes. Lets not forget the HOA’s that also want a piece of you and add more on to your costs.

    Third: Then comes the other gambler the market speculator. No not the housing market but OIL. Oh yeah. Lets raise your costs to more than triple what you were paying.

    Forth: Here comes your employer who can outsource your job to say Pakistan for 80% less than you are getting paid so bye bye. Yes we’ll take America’s money but we’ll not support our own says the corporate clone. Yes clone. So lets not blame the borrower shall we?

    Lets just blame the fact that everyone got greedy and now they are all muddy. My personal preference would be to let the banks fail. Let the chips fall where they may. Enough of us bailing out wallstreet.

    Thats my opinion and you are welcomed to it.

70. Comment by Jack Joyce

    August 26th, 2008 at 10:51 am

    Liz:

    I agree, this whole thing makes me sick - accountability for one’s actions - I guess not. In amereica there is such a thing as a free lunch!

    Jack
    Phoenix, AZ

71. Comment by Pasquale

    August 26th, 2008 at 11:41 am

    I could not agree more !!! The people that did gain during the “boom” are not exactly lining up to help out those who were caught without a chair when the music stopped !! What award / bail-out am I getting for not having the 2 new cars, 83″ plasma and vacation stories to tell, but my mortgage is paid and I have no credit card debt ?!?!?!?! Am I the idiot ??? They say ignorance is bliss right ???
    It makes me sick that gamblers or people that thought on 45,000 salary they could afford a 750,000 house are going to get “bailed-out” mean while people that live in houses they can actually afford are going to have to foot the bill for that. It is like every other social system we have in place, you have the 90% of people that abuse it and make the 10% that actually need it be grouped with them.
    Thank you Liz for putting together the obvious, at least the obvious to those of us with our heads not in our Fannies Mae’s

72. Comment by Bill

    August 26th, 2008 at 12:15 pm

    You are exactly right. Many people work hard and do the right thing, day after day, year after year. I say to Fannie and Freddie: Take your lumps, then get back on your feet and go forward, again.
    Many great Americans do just that.

73. Comment by Gilbert

    August 26th, 2008 at 12:19 pm

    You are absolutely correct. Our politicians (since we no longer have statesmen) are all to quick to spend our money to help people that could have used more foresight.

74. Comment by Lonnie

    August 26th, 2008 at 1:00 pm

    I don’t like it either. It’s almost like stealing. It drives the cost of doing business up for the end honest consumer, the one that (or attempted) concucted business in a moral fashion. So I guess there is always a cost. Is it either in our tax payment to bail out, or the cost of the next loan we get, the next house we sell or buy? Which one is better for the honest consumer? Home builders are a big driver in consumption I know, but many of them made a killing. Real estate agents made a killing, developers made a killing, mortgage brokers, and on. Now the honest masses will pay for all those profits made the last decade or two. Where did all the money go!

    And to top that all off, the basic infrastructure in the country is falling apart. Sewers and water systems are reaching the end of useful life, new madatory environmental goals to upgrade these aging plants are going to cost billions, with little help from the Gov. Fed. or state. Look at the Chesapeake Bay clean up effort being implemented right now. Municipalities are struggling to afford this clean-up. Highways, etc. again this will fall on the backs of the property owners that can still afford their property. Something is terribly wrong with some of our priorities and leadership.

75. Comment by salm624

    August 26th, 2008 at 1:07 pm

    Liz, you are so right. What amazes me most is that this is the first time I have seen anything like this written anywhere. Everyday I feel I am being punished for “Doing it Right”. My wife and I bought a home far below the level we were told we could afford. When we refinanced it wasn’t to pull out equity and spend, it was to lower the interest rate and term, (30 to 15). We pay all bills on time and we have saved for college and a rainy day, (we have financially survived two layoffs in the 10 years we have owned this home). So many neighbors knew exactly what they were doing when they refinanced and spent the equity on new cars, vacations and second homes. From 2003 - 2005 I watched as young couples were led to believe that if they bought a home with an “Interest Only” 1st mortgage and used a second mortgage to help with the down-payment or to avoid PMI insurance, after 5 years they would retire on the increased value of their home. I saw many of the handouts presented to them by hungry Real Estate agents. Like an IPO investment, they all knew that this was the most risky way to get into the Real Estate game. That is what they saw it as, a get rich quick scheme, nothing more. Buy as much as you can so that the increased value will be that much greater. None of the new neighbors I met over the last 5 years had any intention of remaining in my neighborhood more than those 5 years as charted by the RE agents. It was all about the money and nothing about the home. Remember, the place where you raise a family and help the neighborhood. The majority of buyers from 2003 - 2005 were greedy speculators and most do not deserve my help or yours and yet they will be forgiven for their debts by the banks and our government. You and I will pay the bill. You and I who will never, ever have our debts forgiven. You and I who earn the money we need to purchase the items we “can” afford. When will our government ever come to us and say Thank You? Thank you for doing it right. Thank you for making sensible financial decisions and supporting our economy through hard work. When will they ever say to me, “You don’t have to pay for the rest of your mortgage because you were smart enough to do it right”? NEVER! I guess sometimes being smart is the dumbest thing you can do…..

76. Comment by Rick

    August 26th, 2008 at 1:52 pm

    I totlaly agree with all you say. Why should honest tax payers pick up the tab for those incompetent boobs in the mortgage industry that allowed loans to people who could ill afford any bumps in the market place. I have made plenty of investments that didn’t turn out like I hoped or expected. Does all this mean I am entitled to be bailed out by my fellow taxpayers? I guess not.

77. Comment by David

    August 26th, 2008 at 1:55 pm

    I whole heartedly agree with you. I am a first time buyer. I bought my morgage in Febuary 2008. 30 yrs, fixed at 5.5(apr of 6.1 I think) with a 20k downpayment on 183k house. My wife and I were very nervous. It is the most money we have ever spent. We have wanted a house for a while, but did not have the means to buy one. I had to relocate to a diffrent part of the country to get it. We love where we are and our new home. We lived and continue to live below our means so that we can afford our lifestyle and not be burdend by debt. I did not gamble nor did my parents or friends. Yet we are going to be at least partly responsible to bail out those who did. If one really wants to buy a home, or really anything for that matter, they should get serious about it and start to save for it. If you are unable to save, then it is a good indication you are not ready to buy it. Just my .02. I love the new channel and will continue to whatch, however if you guys could please get some more programming in that would be great. All of the infomercials during the weekend get a little tired.

78. Comment by Barb

    August 26th, 2008 at 1:58 pm

    Amen! You couldn’t have said it better. Everyone has too much and is living way beyond their means. It’s gotten so that people go into hock for computers, cable, homes, clothes. And most people I know don’t even use or wear half of what they have. I asked so many friends what they watch on cable and their response is “I don’t have time to watch, my husband likes the sports”. They have all fancy stuff on it and don’t even watch it.It’s ridiculous.

79. Comment by David Atkins

    August 26th, 2008 at 2:56 pm

    I didn’t believe my wife when she said, three years ago, that we’d qualify for a mortgage. We were renting at the time, and I knew my credit was in the 500’s.

    I called around, and the first place I called secured for me a a 100%-financed loan for a home up to $500,000. Sure it was an ARM, but the first two years was at an affordable 7.325%.

    It was unwritten that both the lender and I knew the name of this game. After two years, I would refinance into a “prime” mortgage — with my payments over two years improving my credit.

    My credit DID improve to the mid-600’s. But when I went to refinance, NO ONE would touch me. With my home value falling, I was simply over-extended on the debt-to-equity ratio. My ARM reset to 10.325%. This simply is not affordable on a $330,000 home.

    Not only can I not refinance due to the D/E, but even new homes in my subdivision took two years to sell, making selling a long-shot option.

    Did I gamble? Sure. We both bet on rising home prices, the ability to refinance, and the backstop of selling as a last resort. Is it realistic to expect finding yourself holding an illiquid asset with a predatory-lending-level interest rate?

    What I am doing is playing brinksmanship with my lender. They have the choice now of either enjoying three or four more months while I toy with Chapter 13 bankruptcy, or accept the FHA-sponsored refinancing that becomes available October 1st.

    David Atkins

80. Comment by Wade

    August 26th, 2008 at 3:52 pm

    I totally agree. Why should those of us that live within our means be forced to bail out the businesses and individuals that made these bad decisions??

81. Comment by bill wallace

    August 26th, 2008 at 4:39 pm

    there is nothing scarier than a crazy red-head who wants so to scream, so they had better pay attention to You!!!
    If you look at history and the S&L’s in the 80’s, it appears we are just destined to commit the same mistakes over and over without learning a lesson, and at the tax-payers expense.

82. Comment by Robert Daves

    August 26th, 2008 at 4:45 pm

    I have to agree 100% with you Liz on this bailing out of all the idiots who signed away on these mortgages, either without fully understanding what they had agreed to, or knowing what they had agreed to but willing to take the gamble that the value of housing would endlessly continue to rise. If I remember correctly, we had to place a substantial amount of money as a down payment to get approved for our mortage. What happened to this requirement?

    My wife and I are one of those Americans, who considered all the financial angles prior to signing our mortgage. We have never missed a payment and in a few years will have the mortgage paid off. I can not begin to tell you the sacrafices we made over the years to live within our means. When the mortgage is paid off, we will owe everything we have, including the two vehicles, completely debt free. It has come with many sacrafices.

    So my proposal is for the Federal Government to give each tax payer what they will give to those they will bail out. After all , it is our money to begin with. That way it is equally shared. If not, then let those who made the bad choices suffer the consequences. There is no free lunch, never has been, never will be. When will people own up to their own mistakes and quit expecting others to fix it. How much better off will this country be if everyone became financially responsible for themselves. We still need to lend a hand to our neighbors when in need, but quit bailing these folks out. When they have go to the soup kitchen and live in a pup tent for while, they will catch on to being financially responsible.

    And for those brokers, bankers, mortgage lenders, who placed these folks into homes that were way beyond their means, I say jail time would be very appropriate.

    Thanks for allowing me to vent my frustration and continue to call it like it is Liz.

    Robert Daves
    Baytown, TX

83. Comment by ed

    August 26th, 2008 at 4:46 pm

    Hi liz just got around to reading this and you are right for going crazy abou this after all you and I are the onss that are paying for this mess more ways then one.
    The question is why did the leanding companys ease up there policys,after all why would you? Should the goverment bail out these companys? NO they should not and the goverment should stay out of it as far as bail outs go. After all they are not business men or women, they are polticains.they pass laws, pass bills,pass gas and go on vacations. I think they have the W C Fields out look on work, when the fealing comes on lay down unto it pass…. What needs to happen is let there the folks who do this ( lending Co ) climb out of the basement on there own if they fail will sori to see you go.These folks know how to do it, but will they.
    what bothers me is that the polticains said they did see it comming,May they should not spend a year on stroinds??? well wear were the increase of income that the states are getting???? da
    By the way you guys and dolls at fox bizz have way to much fun giveing us the cold hard fact….Keep up the great job you guys and dolls……..Liz and liz for prez hmmm the world would never be ready!!

84. Comment by Rick

    August 26th, 2008 at 7:21 pm

    It is a sad day in this country when the people sit back and allow this to happen. Congress and their reward/bailout should all go.

85. Comment by Richard

    August 26th, 2008 at 8:20 pm

    so when did President Bush get in the mortgage business? Seems to me a bunch of the “no responsibility taking” liberals who scream
    ” we want more govt” ” the govt should do something” “please take care of every aspect of my life” & the congress that’s currently in session are letting the mortgage companies get away with this.

    we need to elect a new congress & implement term limits & get some these fat maggots out of washington. There is a reason they call it ” a public servant” it was never meant to be a career.

86. Comment by Bob

    August 26th, 2008 at 9:57 pm

    I am very frustrated with this. This bailout is a bi-partisan failure. Behavior that is rewarded will be repeated. Congress and the president are simply bailing out big business.

    I would be hesitant to borrow from a lender that didn’t verify my income and ability to repay the loan. Something is just very wrong with the way those lenders have been doing business.

87. Comment by Alex Gonzales

    August 26th, 2008 at 10:22 pm

    Okay, I like what you’re dishing, because it sort of makes sense, although you need to understand that people bought houses because they didn’t want to rent their whole life. First of all, NO one wanted to buy a 300k valued home. I say that because I bought a home in the roaring Real Estate market at that price. I thought the stakes were going to keep rising, so I placed my bet when I could. The problem is, your economy, and my economy broke down because of negligence from loan officers and lenders. It’s not our fault we were advised to do something by people we thought were professionals. We all didn’t have dad’s who were Doctors to tell us wise quotes, as a matter of fact we had professional bankers tell us we could afford our homes. You’re not better than anyone because you bought a home 5 years ago. As a matter of fact you’re just a lucky gambler. You placed your bet early and now you can push and walk away from the table. The bailout term wouldn’t even exist if everyone was ethical. Remember this quote, “The odds are always in favor of those who get in early”. I for once in my life tried to be early and I showed up too late. Thanks for reminding me of my mistake.

88. Comment by JON

    August 26th, 2008 at 11:45 pm

    Couldn’t agree more! They are called teaser rates for a reason, but it was also very CLEAR that the rates would go UP! There is nothing predatory about persuasion, and last time I checked, its not like folks were moving in to new homes straight from the homeless shelter. They did not HAVE to buy that new house, as they were more than likely currently in a home or an apartment.

    The ridiculous need to keep up with the Jonses’ is what go people in this mess, and greed teaches some painfull lessons. Or at least it used to. Too bad there are so many bleeding hearts that continue to support to notion that every bad thing that happens must be the fault of that nebulus “they”. Heaven forbid that YOU would take ownership of your own decisions (it was your signature at the bottom of that 30 year mortgage, was it not?)

    Interestingly enough, it seems that the root of the word mortgage has come back to haunt us all: Mort, French for death, and Gauge, Frech for Grip. Death Grip. Go figure.

89. Comment by Steve

    August 27th, 2008 at 12:19 am

    You’re 100% right (correct) Liz.

    Where is the outrage???

    Stupidity, of any magnitude, should never be rewarded.

    Looks like this time really IS different … fools will be rewarded and those who were prudent will be picking up the tab!

    Looks like the last laugh’s gonna be on us.

90. Comment by Mike R

    August 27th, 2008 at 8:35 am

    Mornin’ Liz -

    As I understand it, FNM and FRE always were and always will be underwritten by the government. They have always been “propped up.”
    I do not agree with bailing out lenders who made questionable loans to questionable buyers, so-called non-conforming loans, and did not “conform” with guidelines established by Fannie and Freddie. Unfortunately, because there was a “market” for these bundled loans sold to various banks we (taxpayer) should be liable is the height of lunacy. When we see more mortgage brokers fail who specialize in “sub-prime” loans we will know we are solving the problem.
    Thanks for your interest in our financial future. MR

91. Comment by Lydia Bellafiore

    August 27th, 2008 at 11:42 am

    Liz - couldn’t have said it better. We are now at the point - “don’t ask what you can do for your country, but what can your country do for you.” Very dis-heartening. I hate the fact that I bust my butt all day at a job - pay my taxes (can’t afford to buy a house), but I’m gonna bail someone out because they are living above their means. The nerve of people.