Comments on: Now Even Jesse Jackson is Getting Involved in the Subprime Mess

By: Jayson

Jayson — Mon, 10 Dec 2007 00:31:08 +0000

You see? Even Jesse Jackson sees homeownership as a ‘right’.

I suppose he’s also implying that his ‘victims’ who he names as ‘single women, latinos, african americans etc.’ are by definition dumber than other groups??

So Jesse says it’s ok for a minority by definition to be dumber when asking for handouts?

Baloney.

By: Stacey

Stacey — Sun, 09 Dec 2007 04:56:21 +0000

An ounce of prevention is worth a pound of cure. Can’t our politicians see that it’s time for some personal finance education in our public schools’ curriculum? Or is continued ignorance in our populace a desired (needed?!!) trait?

By: Minimum Wage

Minimum Wage — Sat, 08 Dec 2007 04:47:06 +0000

It’s hard to find any innocent parties here. The borrowers are to blame of course, but so are the brokers and mortgage officers who sold loans they KNEW were not sound, collected their commissions, and sold the bad loans to others.

PF readers know there is a LOT of financial unsophistication out there, and most of these first-time buyers were hardly sophisticated financially.

By: Sam

Sam — Sat, 08 Dec 2007 04:06:17 +0000

We already have a Marshal Plan in place, it’s called “China buying US Treasuries” and as long as the money keeps coming, there won’t be a great depression.

By: I’m A Personal Finance Blog Junkie - Plus A Quick Stroll Through My Blogroll

Sat, 08 Dec 2007 03:32:18 +0000

[...] All Financial Matters writes about Jesse Jackson, sub-prime mortgages and the Marshal plan! [...]

By: Jay

Jay — Fri, 07 Dec 2007 22:09:06 +0000

By money I assume you are referring to the money that the lenders will miss out on by charging lower interest? If that is the case, the lender will either just miss out on it or charge higher intrest on other ‘products’.

Of course a lender could choose not to participate in this rate freeze and continue with the contracts as written.

Again, this isn’t a bailout and I would have prefered that they would leave well enought alone. But… noone asked me!

By: HC

HC — Fri, 07 Dec 2007 22:03:25 +0000

The money is going to come from the investors who bought out the mortgage-backed securities.

Which will cause it’s own problems:

(from BusinessWeek) “Indeed, a big stumbling block to workouts so far has been the fear by loan servicers—who manage the pools of mortgage-backed securities—that they could be sued by investors in those securities who might be worse off if a loan is modified. ‘You will see class-action lawyers salivating over this,’ says Bert Ely, a longtime consultant to financial institutions.”

Will there be a social impact on those who don’t qualify for relief? Yes, in that those same investors are going to demand that future mortgages come with higher rates to compensate them from the haircut that they are taking now.

The question is whether the pool of angry still-renters and capable-of-refinancing homeowners is going to be louder than the still-current homeowners who see their neighborhoods going down the chute (vacant properties, crime, etc) because their neighbors are just turning in the keys and who just want someone to DO SOMETHING.

That the latter group is concentrated in Florida and Ohio is not immaterial.

By: JLP

JLP — Fri, 07 Dec 2007 21:30:42 +0000

Jay,

Where do you suppose the money is going to come from?

By: Jay

Jay — Fri, 07 Dec 2007 21:27:14 +0000

Where does it say that this is a bail out? I haven’t see anywhere that any tax payer money is being spent. This is just a propsed rate freeze.

The term bail out was floated by the media well before the details of the plan was known and everyone has just run with it. It is not a bail out… the government isn’t putting any money into the deal.

Having said that, I would have prefered that the situation would have been left alone. Let the market sort it out for itself.

By: JLP

JLP — Fri, 07 Dec 2007 20:40:36 +0000

Greg,

I didn’t care for the corporate bailouts either.

Are you not familiar with the term PERSONAL RESPONSIBILITY?

Where does it stop? People get deluded into thinking they need a $50,000 Lincoln Navigator and then find out that they can’t afford it. Should we bail them out too?

Trust me. The politicians are masking this as having compassion when in reality it’s about looking like they’re looking out for people. It’s a joke.