Thinking about this

flarider
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flarider
Edited Date/Time 1/26/2012 9:26pm
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal.

This deal, unlike some of the others, involves real solid liquid assets, real estate.
The fed can sell any or all of these properties, single or bundled, over time and could very well wind up ahead and turn some profit.

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bigbermbuster 9/19/2008 10:47am
9/19/2008 10:47am
there was some news on lou dobbs,about foriegn countries and all the debt they hold

its at loudobbs.tv.cnn.com

"america for sale"

when will these countries try to collect?

they won't fire a bullet ,but they will own us
bigbermbuster 9/19/2008 11:02am
9/19/2008 11:02am
they are called the SOVERIEGN WEALTH FUNDS..RICH FORIEGN GOVERMENTS BAILING OUT OUR FINANCIAL INSTITUTIONS
BMSOB
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BMSOB 9/19/2008 11:09am
9/19/2008 11:09am
flarider wrote:
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal. This deal, unlike some of the others, involves real solid...
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal.

This deal, unlike some of the others, involves real solid liquid assets, real estate.
The fed can sell any or all of these properties, single or bundled, over time and could very well wind up ahead and turn some profit.

Except that the loans were overvalued. They will never get the amount back that the loan was written for because the property isn't worth that much, thus no profits.
brainbasket
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brainbasket 9/19/2008 12:19pm
9/19/2008 12:19pm
flarider wrote:
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal. This deal, unlike some of the others, involves real solid...
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal.

This deal, unlike some of the others, involves real solid liquid assets, real estate.
The fed can sell any or all of these properties, single or bundled, over time and could very well wind up ahead and turn some profit.

BMSOB wrote:
Except that the loans were overvalued. They will never get the amount back that the loan was written for because the property isn't worth that much...
Except that the loans were overvalued. They will never get the amount back that the loan was written for because the property isn't worth that much, thus no profits.
Until real estate values increase the value of these assets can't increase.
If these measures help stabilize the overall real estate market, perhaps some can be sold off with nominal losses - However as the gov sells assets into the market, it will increase supply and relieve demand too. Kinda tricky there.

If new housing starts remain low that will help more than anything else. A housing shortage would be the best scenario for the gov - but not so much for homebuyers who need to buy.

But then with the new credit restrictions intended to prevent this from happening again - homebuyers will find it harder to get financing, taking potential buyers out of the system.

And all this assumes the gov is getting enough assets to recover the debt they assumed in the first place. How can they really know the current value of what they own?? That's why there are problems now - there's rotting corpses hidden in that paper, and it takes time to trace the stench.

No easy answers I'm afraid ....

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CRF122
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CRF122 9/19/2008 12:26pm
9/19/2008 12:26pm Edited Date/Time 9/19/2008 12:28pm
Securitized housing investment trust - SHIT
flarider
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flarider 9/19/2008 12:46pm
9/19/2008 12:46pm Edited Date/Time 9/19/2008 12:47pm
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run

Actually, a few people on CNBC have said it
BMSOB
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BMSOB 9/19/2008 12:49pm
9/19/2008 12:49pm
flarider wrote:
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run Actually, a few people on CNBC have said...
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run

Actually, a few people on CNBC have said it
It's called putting on a happy face.
Ing
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Ing 9/19/2008 12:54pm
9/19/2008 12:54pm
It was said on ABC this morning that the recent bail-outs, all of them, would cost each and every person in America approx. $3,500. I feel better now.
brainbasket
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brainbasket 9/19/2008 1:00pm
9/19/2008 1:00pm
flarider wrote:
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run Actually, a few people on CNBC have said...
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run

Actually, a few people on CNBC have said it
They could be right.

Of course the alternative would have been to let Morgan Stanley, WAMU, Golden Slacks and JPM fail one by one, have a cash crisis that leads to a bank run, and have the Feds fiddle while the US burns.

I remember the '87 crash well, and when the post mortems were done it was scary to see just how close the US was to a major crash until the right steps were taken.
In most other countries all of us would be SOL right now without question.
With all it's ups and downs, the US is still the safest place to be economically....
flarider
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flarider 9/19/2008 1:04pm
9/19/2008 1:04pm Edited Date/Time 4/16/2016 8:30pm
IMO, I think this is good in the long term.


I also think it makes both candidate's plans and possible policies moot at this point
tcannon521 9/19/2008 1:07pm
9/19/2008 1:07pm
When does the gov ever make money though? That is my only concern. The same with AIG, but both carry a big IF.

Cramer, usually doesn't put on a happy face. He is pretty straight forward and open.
JustMX
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JustMX 9/19/2008 1:09pm
9/19/2008 1:09pm
They will end up selling most houses for pennies on the dollar.

Who is going to maintain these empty houses in areas with a high foreclosure rate?

In areas like California they will have to deal with squatters, vandalism, and plumbing theft to the point that they will be selling them for $1.

Maybe what they should do is this:

Come up with a program to discount these houses to those that have lost their home in New Orleans or the recent Hurricane that hit Texas.

That would get them out of a shelter and off the gov dole, put people in a house so whole neigborhoods don't fall into neglect, and it would keep from having to rebuild houses that will get knocked down again next year.

A lot of the homes in Galveston were rebuilt as recently as 05 after Rita.

Insanity is doing the same thing over and over and expecting a different result.
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BMSOB 9/19/2008 1:11pm
9/19/2008 1:11pm Edited Date/Time 4/16/2016 8:31pm
My daughter works in the business for WaMu. They have shifted their business from mortgage loans to foreclosures. They are paying people to get out rather than going through the foreclosure process so they can sell them quick before they are abandoned or trashed. They hire people to come in & remove all of the items left behind like TVs, furniture & the like as well as companies to repaint & repair so they can be sold. She has some horror stories to tell. One property that had been vacant for 3 months had all of the appliances removed, the walls, granite counter tops & bathroom tile bashed in with a hammer & as a final act of defiance 4 gallons of milk were poured on the carpets & left to rot. She said the smell was overwhelming. The properties are being unloaded at fire sale prices to the very people who made a killing while the market was still robust & the cycle repeats. It's crazy.
tcannon521 9/19/2008 1:17pm
9/19/2008 1:17pm
BMSOB wrote:
My daughter works in the business for WaMu. They have shifted their business from mortgage loans to foreclosures. They are paying people to get out rather...
My daughter works in the business for WaMu. They have shifted their business from mortgage loans to foreclosures. They are paying people to get out rather than going through the foreclosure process so they can sell them quick before they are abandoned or trashed. They hire people to come in & remove all of the items left behind like TVs, furniture & the like as well as companies to repaint & repair so they can be sold. She has some horror stories to tell. One property that had been vacant for 3 months had all of the appliances removed, the walls, granite counter tops & bathroom tile bashed in with a hammer & as a final act of defiance 4 gallons of milk were poured on the carpets & left to rot. She said the smell was overwhelming. The properties are being unloaded at fire sale prices to the very people who made a killing while the market was still robust & the cycle repeats. It's crazy.
And some people here think we should feel sorry for these people....

These are probably the same people who went in no money down and just had a nice place to rent for awhile.

We as a hole have lost our pride in a lot of aspects.
CRF122
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CRF122 9/19/2008 1:25pm
9/19/2008 1:25pm
Local auctions based off lender/city listings giving current long term residents(who paid their bills) an opportunity to make a lucrative investment. Then throw it out to public auction. IMO

The problem is timing, prices are dropping each time i reference local real estate.
flarider
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flarider 9/19/2008 1:26pm
9/19/2008 1:26pm
tcannon521 wrote:
And some people here think we should feel sorry for these people.... These are probably the same people who went in no money down and just...
And some people here think we should feel sorry for these people....

These are probably the same people who went in no money down and just had a nice place to rent for awhile.

We as a hole have lost our pride in a lot of aspects.
You're assuming the former home owner did that damage.
In many instances it is hoodlum kids or crack heads
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BMSOB 9/19/2008 1:32pm
9/19/2008 1:32pm Edited Date/Time 4/16/2016 8:31pm
BMSOB wrote:
My daughter works in the business for WaMu. They have shifted their business from mortgage loans to foreclosures. They are paying people to get out rather...
My daughter works in the business for WaMu. They have shifted their business from mortgage loans to foreclosures. They are paying people to get out rather than going through the foreclosure process so they can sell them quick before they are abandoned or trashed. They hire people to come in & remove all of the items left behind like TVs, furniture & the like as well as companies to repaint & repair so they can be sold. She has some horror stories to tell. One property that had been vacant for 3 months had all of the appliances removed, the walls, granite counter tops & bathroom tile bashed in with a hammer & as a final act of defiance 4 gallons of milk were poured on the carpets & left to rot. She said the smell was overwhelming. The properties are being unloaded at fire sale prices to the very people who made a killing while the market was still robust & the cycle repeats. It's crazy.
tcannon521 wrote:
And some people here think we should feel sorry for these people.... These are probably the same people who went in no money down and just...
And some people here think we should feel sorry for these people....

These are probably the same people who went in no money down and just had a nice place to rent for awhile.

We as a hole have lost our pride in a lot of aspects.
As with anything there are good & bad. Hardly an indictment of society or subprime mortgage holders as a whole, not hole, but easy for some to draw blanket conclusions to suit their own preconceptions.
dougie
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dougie 9/19/2008 1:34pm
9/19/2008 1:34pm
I keep hearing on the stk mkt show that if the fed didnt do what they did or purpose to do that the World as we know it will cease to exist. Is this some sort of Monopoly going on? Cant other businesses take up when these other businesse's fail?


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crashnuke
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crashnuke 9/19/2008 1:37pm
9/19/2008 1:37pm
$85 billion for 80-90% of AIG was a great deal. The US gov't is going to make bank off that.
tcannon521 9/19/2008 1:40pm
9/19/2008 1:40pm Edited Date/Time 9/19/2008 1:44pm
I doubt hoodlums poured the milk. I guess the tow yards are the ones damaging all the repo bikes I bid on each month also huh? My experience shows me, people who put money out of thier pocket to buy something have less repo's and above and beyond that they take better care of the item.
flarider
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flarider 9/19/2008 1:43pm
9/19/2008 1:43pm
Gee, sorry I can't be as negative and hateful towards society as you

I'll try harder though
BMSOB
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BMSOB 9/19/2008 1:47pm
9/19/2008 1:47pm
crashnuke wrote:
$85 billion for 80-90% of AIG was a great deal. The US gov't is going to make bank off that.
$85 billion for $100s of billions of debt. Smokin' deal.
tcannon521 9/19/2008 1:48pm
9/19/2008 1:48pm
dougie wrote:
I keep hearing on the stk mkt show that if the fed didnt do what they did or purpose to do that the World as we...
I keep hearing on the stk mkt show that if the fed didnt do what they did or purpose to do that the World as we know it will cease to exist. Is this some sort of Monopoly going on? Cant other businesses take up when these other businesse's fail?


Wasn't that the same excuse that was given with Behr Stearns?
dougie
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dougie 9/19/2008 1:51pm
9/19/2008 1:51pm
crashnuke wrote:
$85 billion for 80-90% of AIG was a great deal. The US gov't is going to make bank off that.
I heard an estimate of between 20 and 75 Billion. Seeing how the war in Iraq cost 11 Bil a month that means we can stay there for up to 6 more months Wink

Also just heard Wolf Blitzer saying something about it costing us a Trillion bucks. Im so confused.

Hey if the Gov does make money off of this does that mean that "We the People" will be getting some sort of bonus check in the mail?
brainbasket
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brainbasket 9/19/2008 1:55pm
9/19/2008 1:55pm
In a fire sale nobody knows exactly how much usable merchandise they're getting - but the assumption is the incentive to sell being strong enough, there will be values among the rubble.
My son-in-law is a VP for an AIG subsidiary and just bought a shitload of AIG stock. Not sure what that means exactly .........
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dougie 9/19/2008 2:00pm
9/19/2008 2:00pm
dougie wrote:
I keep hearing on the stk mkt show that if the fed didnt do what they did or purpose to do that the World as we...
I keep hearing on the stk mkt show that if the fed didnt do what they did or purpose to do that the World as we know it will cease to exist. Is this some sort of Monopoly going on? Cant other businesses take up when these other businesse's fail?


tcannon521 wrote:
Wasn't that the same excuse that was given with Behr Stearns?
You may be right. Back in 2000 when the Nasdaq was crashing I kept hearing that if Cisco went down to $60 bucks that the World as we know it would cease to exist. Then it hit $60. So they started saying that if Cisco ever got down to $50 the world as we.... yada yada. Well it got to $50 and then they said if it ever got to $40 well on an on and Cisco kept going down. And guess what? The Sun kept coming up. Im thinking that its just the favorite scare tactic when they want us to limber up and touch our toes.

I dont understand any of this and dont pretend to. Im trying but its all waaaay over my head and I cant find anywhere on the internet where its been dumbed down for people on my level Smile

tcannon521 9/19/2008 2:11pm
9/19/2008 2:11pm Edited Date/Time 9/19/2008 2:14pm
flarider wrote:
Gee, sorry I can't be as negative and hateful towards society as you

I'll try harder though
I am not being negative or hateful. Not everything in life though is sugar coated. We have people destroying property and maxing out credit cards before BK and foreclosure. I know not everyone is the same and sometimes shit happens, but for the most part we did this to ourselves.

Unfortunately we only have ourselves to blame.
Ozy
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Ozy 9/19/2008 2:23pm
9/19/2008 2:23pm
That would be sweet if this had a happy ending Wink


Most of the Voting stock in the FED is already owned by Banks outside the USA
j100
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j100 9/19/2008 3:51pm
9/19/2008 3:51pm
flarider wrote:
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run Actually, a few people on CNBC have said...
Jim Cramer on CNBC said it was a good idea and could be profitable in the long run

Actually, a few people on CNBC have said it
i'm torn and i kinda agree, Dave.
KAWboy14
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KAWboy14 9/19/2008 3:54pm
9/19/2008 3:54pm
flarider wrote:
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal. This deal, unlike some of the others, involves real solid...
This bailout, to essentially assume all the bad mortgages, is actually not that bad a deal.

This deal, unlike some of the others, involves real solid liquid assets, real estate.
The fed can sell any or all of these properties, single or bundled, over time and could very well wind up ahead and turn some profit.

they will sell them to the germans and japanese!

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