Insane America: Obama Wants You to Bailout the Asshats Who Live Next Door
Have we lost our collective minds. I woke up this morning, and apparently I now live in Havana, where Castro is leading a parade of unemployed clowns all driving '57 Chevys. Team Obama: pehaps you missed the message the American people have been trying to communicate. Stop The Bailouts. All of them. And we sure as hell did NOT want you to extend the bailout to homeowners. This is a country of responsibility, and you are giving those who played by the rules the middle finger salute.
The newest twist on government bailouts commenced officially today with relief for your irresponsible neighbor. You are now paying for his greed and stupidity, and perhaps even the Hummer and Corvette he bought with his home equity loan that he'll never re-pay. Yes, you are footing the bill for his vehicles as well. It's all pooled capital. He purchased near the top with no money down, got a $200k home equity ATM, bought all his toys, walked away from the house and both mortgages last year when prices plummeted. No recourse. Before walking away, he secured a mortgage on a newer home 2 blocks away that was a short sale. He got in the newer house for 50% less than he paid for the 1 across the street from you. His credit is now damaged from the walkaway, but in 3 years that will disappear. And guess what, his new short sale purchase now qualifies for mortgage assistance under Team Obama's Plan to Save the Asshats.
Since the Mortgage Foreclosure Bailout Plan was announced Wednesday the outrage has been palpabe. For most taxpayers, the ongoing bank and auto bailouts, though more costly and extremely un-popular, do not resonate personally. But bailing out an irresponsible neighbor who purchased more house than he could afford is understood by everyone. Particularly our most maligned housing sub-group, renters, all of whom made an intelligent choice NOT to participate in the real estate bubble, yet now are being asked to subsidize the mistakes of those who did. Considering that renters already get shafted by the unfair tax subsidies given to homeowners, this proposal accomplishes nothing further than reminding them how worthless they are in the eyes of Washington.
Reuters says Obama's home foreclosure mortgage bailout plan will cost taxpayers $275 billion to help 9 million homeowners and yet most analysts believe it simply won't work. Housing prices nationwide still have much further to fall as evidenced by this must-see chart from Yale economist Robert Shiller. Yet Obama and his team seem focused on slowing the decline at great expense until it has been proven indisputably that we are the new Japan. Where is the change, President Obama. Every day your administration feels more like the last 20 years of Bush-Clinton incest.
Santelli Videos Part 1 The CNBC Rant that Started a Revolution: Chicago Tea Party is Born
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Santelli Videos Part 5 2 Videos: White House Press Secretary Attacks and Santelli Responds
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Reader Comments (55)
Righteous pic of the kid.
Mortgage brokers are the ones who falsified incomes, Verifications of Employment (they buy blank forms on line), rushed the hapless homeowner through a contract nobody could read in less than a month, lied about it's contents and then altered the numbers after the fact. Brokers hiring their own appraisers is a direct conflict of interest, and an appraiser doesn't work if he doesn't give the broker the number he wants. Standard practice. No wonder prices were skyrocketing. I had many a broker demand I appraise properties as much as 30% over what the comps showed. Take those inflated numbers, put them in the MLS and the compounding begins. Hence, property values climbing by 20% a year. A giant pumpndump. You expect the borrower to know that? Borrowers didn't know that brokers will do ANYTHING for a commission and insiders from the industry have confirmed this time and again publicly.
Those "irresponsible" borrowers were people who thought they were going to lower their monthly payments by 3,4 or 500 a month, were told that a variable rate loan was the thing to do and that they could come back and refi in a year or two. The "irresponsible" borrowers were average Americans with medical bills, old cars that needed repairs, students going to college, handicapped children, single mothers trying to make ends meet and they all ended up victims of predatory lending.
Congress, the FBI, and anybody who has actually studied the situation knows how so many people were tricked into financial destruction by an industry totally devoid of ethics, morals or principles. Borrowers were caught offguard by RE "Professionals" that lie, deceive, cheat and swindle without a blink. Something you don't face with any other industry.
So I suggest you get your heads outta your asses and do a little reading beyond the newspaper, don't listen to what real estate people say and help your neighbor because they are financial crime victims that were not protected by consumer law. Ref: MortgageFraudblog.com, MSFraud.org, FBI financial crimes unit, and type "Mortgage Fraud" and "Appraisal Fraud" into your browser and smarten up.
It is not the taxpayer's responsbility to compensate fraud victims, assuming they were indeed fraud victims. Hey, I lost a lot money on dot-com stocks thanks to the Wall Street hucksters etc., can I get my money back? Fraud victims can sue the fraudsters to get money back or demand prosecutors to prosecute the fraudsters. What we have here is taxpayers getting ripped off to pay victims while the fraudsters go free!
Also, people who sign important financial papers that can potentially tie them up financially for the next three decades without actually reading them, well, perhaps they shouldn't own home! The potential cost of signing an annual rental agreement without reading it is much smaller. Everyone has to lear how to walk first before running.
I don't know much, but knew I couldn't afford to buy, or wouldn't. It's simple math, and my father always taught me never to sign anything unless I've both read it top to bottom and completely understand it. I have also been taught not to spend more than 31% of gross income and to plan for a rainy day b/c that great job you have today could be gone tomorrow. I have no use for a hummer or granite counter tops. I look around and all I see is reckless greed and entitlement. I rent a simple apartment with my wife and kid and have been waiting for this bubble to burst so we can finally afford to buy at reasonable prices, something our country hasn't seen since '97. Look in the mirror, there is mucg blame to go around, but it must start with YOU. Suck it up, renting ain't so bad, it's worked for us and will work for you, not the end of the world, although you may be considered less of a citizen and much less important to our government.
Mr. Obama, please reverse course immediately and stop rewarding the foolish at the expense of the truly responsible. For god sakes, our country depends on it. REAL hope and change is what I voted for, not a socialist U.S.S.A. I hope to see you all at the Chicago Tea Party.
Don't change.
Obama, we hardly knew you. Of course, that is because you are just another lying scumbag politician who is beholden to the true rulers of America. And, whatever you were, you were better than Bush. I, for one, am not surprised, though I am disappointed. Washington is a strange town and politicians are odd creatures. Beliefs and principles don't run the country, money does.
Wait for the next step, allowing recourse on all mortgages. Why not simply have the goverment buy all property at the peak price and hold an auction. Halliburton will get first look and will buy all the homes in California for $38 a piece. JP Morgan will get to buy all real estate on the East Coast for $17 million. Citibank will get everything in between. Goldman sacks will be the exclusive broker for purchases and all sales.
But hey, let's scream and kick and cry, because the government really listens when we do! Is it legal to advocate the overthrow of the US government? By peaceful means, of course. And by peaceful means I mean waterboarding, torture, kidnapping, and execution, all of which are apparently perfectly acceptable. I wonder if Congress would support these bailouts if we waterboarded them instead of writing them letters. I doubt it.
you opened your statement calling someone (whom exactly?) a redneck and ignorant. i do not believe where or even if someone attended college matters one iota, but to show you how foolish you are in your attack on me, i'll break one of my rules and share some of who i am with you.
i dropped out of school in the 5th grade. eating mud pancakes to survive, i tilled the fields during the day and read by penlight at night in my tent out behind the farm.
in the mornings after i cleaned the outhouse and gathered the fresh eggs from the chicken coop, my attention turned to the tractor and to bessie, the family cow. it was my job to milk those teats every day. if i didn't get bessie to share her bounty, i did not drink.
i feel your anger, man but seriously. your obvious bias has caused you to overlook something the rest of us call logical thinking. perhaps you've heard of it.
your argument assumes that the homebuyer is unable to think for himself/herself.
who in their right mind would believe a real estate agent or mortgage broker as the sole arbiter of a home's value? sounds like you did.
the reason there are millions of poeple outraged is becasue there were millions of people who made a decision NOT to buy into the bubble. these people were rational thinkers who saw a mania unfolding and knew it wouldn't end well.
they chose to wait, often making their lives more difficult in the process. ever try living with a few kids and a spouse in an apartment?
i bet it's not very friggin' easy sometimes. yet millions of families in the bubble states RESPONSIBLY did exactly this. they made a conscious decision to wait.
also, who is dumb enough to believe in appraised value. (oops sounds like you did) Goldman Sachs has some bonds with an appraised value of par that they would love to sell you. and they're the experts rememeber. but should you believe them? it's called a vested interest on the part of the seller. intelligent people understand how to see through a sales pitch. apparently, you did not.
and finally, do not ever come back to my site and criticize the readers and commentors as you did.
for the record, i personally am very proud of my 5th grade education.
and lastly Stephen, don't feel too badly. you're a winner of something at least. you're now officially the dailybail tool of the month.
your prize is peer recognition that you're an apologist for the idiots PLUS a shiny new craftsman toolbox. call bill miller of legg mason, word is that he's got plenty of room in his shed.
2) When I signed the contract I told the people there to get comfortable because I was going to read the ENTIRE THING END TO END before I signed it. It took about an hour & I made them cool their heels while I did it.
3) I bought a house for a long term residence, not as an investment vehicle.
4)If I take a loss its my responsibility, not anyone elses.
5) anyone too stupid to be able to read & understand a mortgage contract is too damn stupid to be allowed to vote in elections or breed. They certainly are too damn stupid to be able to have an opinion on anything that anyone should give a damn about.
Plan for the worst, hope for the best. Somehow that got forgotten. The sooner prices get down, people get booted out of homes they can't afford, and failures stop getting propped up with bailouts, the faster we can return to economic recovery and growth.
i have read similar stories from other appraisers that stayed away from the madness and actively tried to protect potential homebuyers.
you are to be applauded for taking the high road. in fact i have always thought that appraisers as a general rule were the least likely to engage in the fraud game of any of the players (buyers, bankers, securitizing investment banks, real estate agents and mortgage brokers)
mostly because of the fee structure. where is the incentive to be a fraudster for $300 bucks? so yes, blame goes everywhere and the great people in each of these respective industries all get black eyes from the behaviour of the sordid few, or in some cases, many.
good points.
Stepen you are an ignoramous of the highest magnitude.
Some of Stephens greatest hits:
"then switched people into loans they could afford at the time."
"That's the kickback the broker gets for sticking people into higher rate loans than they're actually qualified for."
"Mortgage brokers are the ones who falsified incomes"
Dude, did no one ever teach you even a hint of personal responsability? People like you are EXACTLY the ones we do not want to bail out. In a Darwinian sense you are absolutely what needs to be culled from the home buying population.
The bailout is a transfer of your stupid, irresponsible debt to the public. That debt should be retired in foreclosure (and you should leave the house) so that banks learn a leason and never ever lend to your sort again. Instead Obama is simply transfering your debt to all of us. You should want the debt retired too.
Great post. there are a lot of people that were forced NOT to buy a home because they were logical and put 2 and 2 together. Those people are the victims too for not buying during this mania. Great post! NO BAILOUT! STOP THESE STUPID BAILOUTS! GO RICK SANTELLI!
All of you. The whopping 51% who voted for Broke Hussein Chavez.
Rev. Obama Von Hopenchange will do NOTHING but have you cling to your guns and religion a bit more, by the time you look at your wallets 3 years from now.
Pelosi will condemn another "500 million Americans to lose their jobs" (she's such a god damn idiot, its impossible to calculate her IQ unless we could test an orange peel)
And someone...PLEASE...beat down that flaming lisp-beater, Barney Frank. He's the source of ALL the rest of the pain with his earlier decisions.
I never thought I'd say this.....Where is Mitt "Big Love" Romney when you need him?
I pray every day that you DUMBF*CKS who voted for Mr. Oprah Winfrey....get exactly what you want - New Ruskie.
Having money on your 401K/IRA for retirement? Better take the 10% penalty and get it out. In 10-20 years you won't get any social security as long as you have financial means ie. IRA/401K to rely on. Me, I am officially broke, no investments, no IRA. I do have a 401K where I work but will pull the money out the day I quit working there.
Those that save and try to do the responsible thing are the suckers. Not that I feel it's right, but those are the rules. I just try to get the optimal return for myself living by those rules. Will a society build on those rules prosper on the long run? Absolutely not, but I'l be dead on the long run anyway, so what do I care?
I also saw the mortgage broker lady who was pushing the ARm whatis instead of the 30-yr locked in rate
I was looking for. I mean, rates were low. O knew people in the 80s that bought homes at 16%. I want that low rate for life!!
SO in the midst of all this, and a market that was skyrocketing amid people waiving inspections, I thought, what goes up must come down, and
I'm outta here. I had enough money to get in deep, but not enough to just buy outright, because believe me I would have.
Anyway, I saw these offers, and I managed to avoid taking them. Now I'm supposed to help out these losers, not to mention
these over-priced markets just because some bankers need to save the value of their fraudulent SIVs? SHove it. If the govt wants the
economy to get going, nationalize the banks throw these properties out for 50% of the current market price, and I'll be there.
Of course, not many of us were cautious, I imagine, and out numbers dont count. Hell, if it savces the general economy, then
OK, It wont though. Keeping people in overwrought mortgages wont save many, and keeping prices high will jst delay the pain.
I called and wrote my Senators and Congressman to vote NO! on 9/18/2008 (they voted YES).
I am surprised that at the reaction of a number of Blogs and Folks over this 2nd bailout. Why, because so many said BOOO at the 1st one. I guess many prefer that a CEO deserves his Jet or Golden toilet set.
Folks...Wall Street and Washington need to be Tarred and Feathered!
This is no way to run an economy.
But more to the point, this is no way to lead the world.
https://www.createspace.com/Customer/EStore.do?id=3369403
Any one care to disagree? This entire Bailout from day one is ILLEGAL.
WOULD YOU STAND AROUND AND DO NOTHING WHILE A MASKED MAN WALKED INTO YOUR HOME IN BROAD DAYLIGHT, STOLE YOUR MONEY AND YOUR TV, RAPED YOUR WIFE, KIDNAPPED YOUR CHILDREN, AND THEN DROVE OFF IN YOUR CAR? IF THE ANSWER IS NO, THEN WHY ARE THESE CROOKS IN DC STILL BREATHING THE AIR OF THIS PLANET?
Ron Paul is a good man, but Libertarians in general are retards. Ralph Nader is the answer. He's been right all along.
As for my response for what the just upcoming wars against Pakistan and Iran will do the economy, please reread the above.
Anybody?
First we reward the BANKS and their greedy near-criminal employees and then we don't reward the poor doofuses who bought into their schemes? WTF?
Obama is just making things a bit more equal. Giving a more level playing field, sort of. If you're going to bailout the criminals, then it's only fair you bail out the victims.
You morons on this site complaining about this are only upset because you were not on either end of these deals. Right?
I just bought my first home with cash - I paid 180K for a home that sold for 650K not two years ago...the former owner bailed out so fast I got most of their furniture (including 4 flat screen tv's) as well - thanks.
To all of you idiots who think it is your neighbors responsiblity to compensate you for your stupidity...you have no one to blame but yourselves.
Keep giving me cover guys, while I make off with my loot to Geneva.
This is an attempt to 'blunt' the price decline in housing, thinking this will 'help' the housing market. This won't happen folks.
Sales and the housing market will recover once prices go down. In fact, it's already happening.
http://static.seekingalpha.com/uploads/2009/1/30/saupload_case_shiller_chart_updated.png
http://blogs.reuters.com/great-debate/2009/02/20/let-housing-find-its-clearing-price/
The mortgage bailout will not work.