Capitalism simply isn't working

[czygvtwkr]

Not at all. Wipe the slate clean. Reset the rules so the bubble doesn't get blown up again.

You're not wrong to feel indignant about the whole thing. The issue is contagion and how to get out. It does you know good to live a clean and virtuous life and self righteously sneer at the people around you who did not while they, slowly, infect you. The economy doesn't happen in a vacuum. It still impacts you. And, while you're being smug, I'd wager that you benefited from the bubble too, just like virtually everyone did.

So, don't think of it as rewarding poor decision making. Think of it as protecting the good decisions you've made.

Write it off. Set the rules to make it less likely to happen again. You should be outraged at how the banks and insurers and other nations made out at your expense. At least I am your fellow countryman. What helps me back on my feet, ultimately, helps you, too. Not so when our dollars and credit go overseas.

I would really like to see statistics on those foreclosed homes that broke them out between people that bought a house their income was reduced and then they were foreclosed because of that vs people that used the equity in their house as a source of income and then their money tree died. I know only three couples personally that were foreclosed on and two got HELOCs and went on a spending spree with the money, the third couple was a product of divorce, couldn't afford the house on only one income and they were too busy trying to stick it to each other to get out when they actually could.

The basic case I might be able to get behind, but of the three couples I know that were foreclosed on I will never be able to get behind.

No matter what the circumstances the exact same things could be said of any social program, welfare, section 8, food stamps etc, no difference.

I may have benefited from the bubble but in a round about way, I did not own a home until 2006 and it is currently worth about $50k less than I paid for it, but I bought it as a place to live not as an investment.

 

[Larry Gude]

I would really like to see statistics on those foreclosed homes that broke them out between people that bought a house their income was reduced and then they were foreclosed because of that vs people that used the equity in their house as a source of income and then their money tree died. I know only three couples personally that were foreclosed on and two got HELOCs and went on a spending spree with the money, the third couple was a product of divorce, couldn't afford the house on only one income and they were too busy trying to stick it to each other to get out when they actually could.

The basic case I might be able to get behind, but of the three couples I know that were foreclosed on I will never be able to get behind.

No matter what the circumstances the exact same things could be said of any social program, welfare, section 8, food stamps etc, no difference.

I may have benefited from the bubble but in a round about way, I did not own a home until 2006 and it is currently worth about $50k less than I paid for it, but I bought it as a place to live not as an investment.

Glad you asked.

My ex and I split up in '07 and, in '09, had buyers, deposit in hand, with an offer of $380,000. I owed more, $40,000, and told Wells I'd be happy to take a note back on the difference. They said NO. This when people were already walking away and not offering squat to make up the difference.

After that, the economy started tanking. I could no longer afford it and lost it. It went for $280,000. My credit was shattered. The Bank lost $100,000 and the house is still sitting.

Had the bank took the deal, they'd have been $100,000 ahead and I'd be in much better shape. I ####ING HATE Wells Fargo for this. Forever. They didn't take the deal because they had NO reason to do so BECAUSE of TARP. They had NO motivation to take ANY alternate looks at things. None. Because of TARP.

Absent TARP, the banks have a real problem, of their making, on their hands and have EVERY reason to work something out, especially something that would not have cost them ONE penny at the time.

TARP meant that $100,000 didn't mean squat to them. They were covered no matter what. Heads they win, tails I lose.