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Originally Posted by SCUDSBROTHER
Let me ask you people something. This money they want our taxpayers to inject into the financial system? I don't get why we have to do that. This money didn't go into a fireplace. People have this money already. It just not in the hands of people that sell loans. It's in the hands of speculators that sold their homes to people that got bad loans. They need to basically sell these homes back to these same speculators at low prices. They will then have money to loan again, but the financial companies will have to take a loss. You know what that is? Tough s-h-i-t. Don't be such greedy fkrs next time. I say no to the bail out, and yes to selling these homes right now to the highest bidders(people who have the loan companies money right now.) That is capitalism. The way I see this is the loan companies fkd up, and are refusing to take the responsibility that anybody else has to take for fkn up at capitalism. Bailing these people out is bullshit. They can get money in the next 30 days if forced to sell these homes for bargain prices to those people that kicked their a-s-s in the 1st place. People that sold high have this money. Don't come to us for it. Get it back from the sellers you gave the money to. FK OFF.
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Scuds-
You are attempting to simplify something that is infinitely more complex. This isnt about "selling homes back". You are viewing loans with the "george bailey/mr potter" mentality and mortgages arent done like that anymore. They are pooled, packaged and sold as securities...or were.
Loans that are "on the shelf" and being held for investment cant be sold. That is the issue. There arent many buyers or Sellers out there for a number of reasons:
1. Who wants to buy an asset backed security when you arent sure of the rating but more importantly backed by a declining asset?
2. If you sell an asset backed security at a firesale price you have to "mark to market" the other loans in your portfolio. Basically, you are devaluing everything to sell a little bit.
3. No one knows what the next step is going to be for the govt.
Individual mortgage companies ARE buying back fraudulent investments sold to unwitting investors. What do you think happened to countrywide and AHM? The problem i, what are they going to do next? Go after the broker? He is out of business and probably snorted the profit anyway.
You want to know what happened to the money? Well, some of it filtered into other segments of the economy. Beyond that? Read up on deflation.