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robbing Peter to pay Paul's mortgage

Discussion in 'California & Nevada (Northern)' started by 101010, Sep 30, 2008.

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  1. 101010

    101010 Formula 3

    Jun 22, 2008
    1,853
    #1 101010, Sep 30, 2008
    Last edited: Sep 30, 2008
    This will be short and to the point.

    Text of the bailout plan (from the NY Times link):
    http://graphics8.nytimes.com/packages/pdf/business/20080928bailout_text.pdf

    Sec 109c line 14 "principal write downs" of mortgages
    Sec 110-2 Modifications (to mortgages)
    (a) Reduction in interest rates
    (b) Reduction in loan principal

    Now think about this example:
    There are two neighboring houses.

    In the first house, Peter was prudent, saved his money, lived within his means, worked hard, and could afford his mortgage.

    In the second house, Paul took on too much debt, lived beyond his means (possibly even taking out a HELOC or two to "live the good life"), worked just enough, and frankly cannot afford the mortgage he got himself into.

    The aforementioned sections essentially say that the tax money that Peter has paid will go to help his neighbor Paul. Truly robbing Peter to pay Paul's mortgage!!

    On top of that, everyone else who knew they couldn't afford a house and thus are renting... their tax money goes to help Paul too!!

    That is f*cking ridiculous.

    Sec 113(a)1. "Minimizing negative impact" -- This section is pure fluff but does clearly say there *will* be a negative impact. None of the talking head "well, the gov't might actually make a profit!" nonsense. That is absurd punditry.

    Here is a graphic showing who in the House voted for or against this absurd, Socialist bill:
    http://www.nytimes.com/ref/washington/ROLLCALL.html?currentChamber=house&currentSession=2&currentCongress=110&currentRoll=674

    I will vote for, and contribute to, the incumbent campaigns of those who voted against this bill.
    I will vote against, and contribute to, the challenger campaigns of those who voted for this bill.

    As a taxpayer, one who lives well below his means, and an American, I am utterly furious that House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., Paulson and House Republican Whip Ray Blunt, R-Mo could come up with this absolute garbage.

    Moreover, the fact that Henry J Paulson originally asked for $700,000,000,000 without any oversight at all, just a "trust me, I'll spend it right" attitude, is completely un-American and goes against our democratic system of checks-and-balances. He is a snake, a complete failure at his duties, and should resign immediately.

    End of rant, thank you for reading.
     
  2. Etcetera

    Etcetera Two Time F1 World Champ
    Silver Subscribed

    Dec 7, 2003
    23,776
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    C6H14O5
    #2 Etcetera, Sep 30, 2008
    Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

    Unreal.
     
  3. Huskerbill

    Huskerbill F1 Rookie

    Sep 6, 2004
    4,126
    Oconomowoc, WI
    Full Name:
    Bill
    #3 Huskerbill, Sep 30, 2008
    Last edited: Sep 30, 2008
    Agreed.

    I mean seriously. I work hard. I pay a big mortgage. All while my neighbor is trying to sell his home for 300k less than he paid for it. I could do the same (short sell), take a hit to my 800+ credit score and buy a home like his ( or HIS home for that matter) for $300k less than mine. In essense, I would have $300k more in "equity" and my payment would be 1/3rd less per month which would save me another $20k per year.

    Basically, for 200 or so points against my credit, I could have $300k more in "equity" and a Gallardo in the driveway for the SAME price I am paying now.

    HOWEVER, as someone who is choosing to NOT let my home go even though it would make sense to, I am deciding to stick with my committment to see this thing through.

    I would like to think that there is SOME reward in it for those like me. Or are we the true idiots that will never get ahead??

    Just as welfare and other government programs have created an environment that makes it easy to NOT work hard or be held accountable for your actions, this feels like more of the same.
     
  4. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
    7,645
    Northern California
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    Greg Calo
    #4 GCalo, Sep 30, 2008
    When Paulson left the financial markets just a few years ago he was worth $500M. Now he's worth $700M with the help of King George's friends!

    Bear in mind that the bulk of his $ is in, yes you guessed it, real estate!

    So to protect himself, a few friends, Saudi, Kuwaiti, and Chinese investors, he master minded this plan.

    You think I can get them to buy a scheme like this I just cooked up?
     
  5. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    #5 bobafett, Sep 30, 2008
    LOL. You guys are so far behind on this. GS and their criminal perversions continue unabated w/o scrutiny. Pernicious hardly begins to describe it.

    The only thing to do is never have any credit. The credit setup in this country is a scam. Cash and cash alone. Can't buy it in full cash? Don't. It's that simple. We're a nation that produces nothing but debt.
     
  6. 101010

    101010 Formula 3

    Jun 22, 2008
    1,853
    #6 101010, Oct 1, 2008
  7. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
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    Greg Calo
    #7 GCalo, Oct 1, 2008
    Boy is this ever true.
     
  8. 4i2fly

    4i2fly Formula 3

    Apr 16, 2004
    1,333
    SF, Bay Area
    #8 4i2fly, Oct 1, 2008
    I'm with you bobafett...but the reason we're here is not because credit is available to people/governments who can use it responsibly. If uncle sam and people are spending beyond their means even if spending is coming from budget surplus or savings account it will eventually lead to crisis we see today. The problem is not the availability of credit but about fiscal responsibility. I saw this youtube video the other day and I was amazed:
    http://www.youtube.com:80/watch?v=Wt1Lo-WPDQg&NR=1

    There is no escape!
     
  9. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
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    Greg Calo
    #9 GCalo, Oct 1, 2008
    Right on point!

    We need to get back to paying up front and not having debt.
     
  10. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    #10 bobafett, Oct 1, 2008
    Fiscal responsibility is absolutely key, but the advent of debt and the confluence of vendors, financial institutions, payment mechanisms, etc. that rely on debt and work towards creating it certainly greases the rails for those who don't actually think (oh, about 290 of the 300MM).

    I might be wrong in my approach, but I've found it works for me. Zero debt, zero credit rating. If I can't afford it, I don't buy it. Pretty simple policy.

    PS - good to see you posting, send me an email fill me in on what's been going on.
     
  11. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
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    Greg Calo
    #11 GCalo, Oct 1, 2008
    Very true but most unfortunately high FICO scores are a result of debt and how one handles it! It is just crazy. It makes no sense. If you want to be conservative and careful, your FICO can suffer. Absolutely senseless!

    Thanks been a bit busy in the past. I will drop a note to you.
     
  12. 101010

    101010 Formula 3

    Jun 22, 2008
    1,853
    #12 101010, Oct 1, 2008
    If you never buy on credit, your FICO score is irrelevant anyway, right? The Fair Issac Credit Org Score is a metric to see how well you handle your access to credit and debt-- you can build it up just fine by paying off credit cards every month, never ever carrying a balance. I'm living proof. (Last I checked I was bumping up against 800.)

    The only time I ever carried a balance was when a new card gave me 1 yr at 0% interest, at which case I allowed it to build up to its credit limit and instead of sending them checks, I invested the amount in short term Treasury bonds. Those bonds came mature at just the right time, I paid off the debt the month before the 1-yr period ended and voila... I was paid to actually carry debt while my credit score remained high. :)
     
  13. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    #13 bobafett, Oct 1, 2008
    Actually Greg I meant Matt, but you're welcome to send a note too! ;)
     

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