Quote:
sebastian_dangerfield
Well, thankfully we have Bush's huge bailout for those subprime mortgages as a template for future intervention when markets turn into irrational frenzies. All 300 beneficiaries are breathing a lot easier today.
BTW, when did a guy making $100k and taking out an ARM to buy a $500k house become a subprime borrower. Is "Subprime" the new "Hedge Fund"? Means whatever you want it to mean? I always thought subprime was a low credit score, but low and behold, suddenly, the ass up the street who bought a Hummer, Benz and McMansion with his 2d year associate's salary is a subprime borrower entitled to relief.
Thank God that plan is nothing but smoke and mirrors. I feel bad for a lot of people who got screwed in the inner cities by unscrupulous brokers, but fuck these greedheads who took out interest only loans and ARMs just because they wanted a living room in which they could put a 20 person dining table.
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The more I read about this "bailout" - I don't get it.
The qualifications are so limited, it's only going to affect about 100,000 loans. A drop in the bucket. And most aren't even what is regarded as sub-prime. So why do anything at all?
The whole concept is deplorable. By propping up artificially high RE values - ostensibly so homeowners can continue the "American Dream" of owning a home - it's keeping countless others on the outside of the American Dream of owning a home.
