tag:blogger.com,1999:blog-38606399.post7306968124343349701..comments2023-09-23T00:38:53.296-07:00Comments on Money and Such: Voluntary Sub-prime Bail-Out is Still a Bad IdeaUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-38606399.post-73820983843260430832007-12-28T18:29:00.000-08:002007-12-28T18:29:00.000-08:00Shadox - If you are a true free market guy you sho...Shadox - If you are a true free market guy you should think the bailout is fair. Afterall, the mortgages companies are only agreeing to it becuase they think it will be better for them from a $ perspective. Foreclosures typically only recover something like 60% of the value of the home so these lenders are betting that they will give enough people enough time to hang on that they'll actually lose less than letting the people go bankrupt. I agree with your point that this will extend the housing price correciton a bit. Finally, I'd just like to point out that mortgage adjustments have always been available. The politicians just got involved so they could take credit for finding a "solution." This bailout was always there behind the scenes.Armchair Fiduciaryhttps://www.blogger.com/profile/08500733984073216921noreply@blogger.comtag:blogger.com,1999:blog-38606399.post-38401957217318442772007-12-11T12:54:00.000-08:002007-12-11T12:54:00.000-08:00Traciatim - that's exactly the point. Instead of t...Traciatim - that's exactly the point. Instead of taking the pain and dealing with it all at once, this episode will be drawn out over years. Economically, it would have been better to take all losses up front and then return to market growth. Cutting a small piece of the dog's tail each day is not being kind, it is simply extending the misery.Shadoxhttps://www.blogger.com/profile/08932074837479954410noreply@blogger.comtag:blogger.com,1999:blog-38606399.post-64390557979704734682007-12-11T07:16:00.000-08:002007-12-11T07:16:00.000-08:00This solution however will spread out the problem ...This solution however will spread out the problem over a few years and thus make home prices stagnate in certain areas due to some relief. I think it's better to spread the problem over a few years and have the home prices stagnate for a while while inflation catches up a little bit. After that it will be back to business as usual with inflation based real value increases . . . unless of course banks get greedy again. Banks . . . Greedy? Never. We'll be safe for decades!Traciatimhttps://www.blogger.com/profile/07939921958167371917noreply@blogger.comtag:blogger.com,1999:blog-38606399.post-27916081084921662572007-12-11T04:55:00.000-08:002007-12-11T04:55:00.000-08:00Totally agree. A bailout is a horrible idea; it o...Totally agree. A bailout is a horrible idea; it only artificially props up home prices.frugal zeitgeisthttps://www.blogger.com/profile/17804781758510341558noreply@blogger.com