Sunday, March 30, 2008

Tax Payers Against a Bailout

A reader sent this in:

"PDXOutsider,

I thought you should see this:

An online petition is available. Let you voices be known. No taxpayer funds to bailout the irresponsible.

http://www.petitiononline.com/mod_perl/signed.cgi?bailout


Thanks."

If you oppose a bailout for people who bought houses they couldn't afford, and for financial institutions that took on too much risk, please sign the petition.

6 comments:

Perplexed said...

I want the financial EXECUTIVES skin because it is their risk taking that caused this problem.

Unfortunately a bail-out cannot be avoided because failures by the major players is infectious. Read: http://money.cnn.com/2008/03/28/news/economy/disaster_sloan.fortune/index.htm

PDXOutsider said...

Perplexed, I understand the need to step in to prevent major financial crisis, but anything that we do to aid homeowners who took on too much risk will only perpetuate a cycle of risky behavior with no downside, and will prevent housing prices from correcting to where they should be as quickly as possible.

But on a more emotional level it kills me that those of us who are trying to save up enough to be able to put 20% down without any trickery are getting screwed, through interest rates that are now below inflation, and through possible bailouts that help those that can't live within their means.

Perplexed said...

PdxOutsider, I couldn't agree with you more but I think the executives who sold those mortgages should suffer too, as individuals. That is why I have no sympathy for the Bear Sterns stock holders and mortgage brokers.

The lenders knew exactly what they were doing, they have the analytical tools to evaluate risk and verify incomes.

Interesting comments by financial talking heads today... proposals for Federal oversight looks like the SEC might go away. Yet to know if there will be effective regulation as a result.

At the moment the Fed is bailing fast least the ship go down.

Kirk Coburn said...

If you are against having your tax dollars bail out irresponsible borrowers, be sure to WRITE YOUR REPRESENTATIVES!

Your House of Representatives:

https://forms.house.gov/wyr/welcome.shtml

Your Senators:

http://www.congress.org/congressorg/home/

Recommended message:

As one of your constituents, I would like you to know my feelings on supporting any type of mortgage bailout. Please do not support the efforts to bail out mortgage holders and mortgage lenders with my tax dollars. As a responsible citizen, I do not believe it is right for you to ask me to pay for other peoples’ financial excesses, especially since a bailout encourages lenders to continue making predatory loans, with the assumption that taxpayers are on the hook. Further, we believe that the liability of the mortgage mess should NOT be shifted to GSE’s Freddie and Fannie. I appreciate the goal of helping people to have access to housing, but any proposed bailout will only reward lenders and borrowers who acted irresponsibly, and it will punish people who work hard and diligently manage their finances by not buying houses which they cannot afford. The housing market has begun a process of correction. This is necessary in order to keep housing affordable in the long-term. Let the market correct so we can achieve stability again, and people are able to save and afford the house of their dreams over time. That really is the true American Dream.

Anonymous said...

I wrote my rep and both Senators a couple times this past year about this and believe many others did too. A lot of good it did.

In an election year, no one wants Great Depression II.

Perhaps it's time we joined the economically challenged? I can't tell you how many friends and acquaintances have been able to discharge big debt through bankruptcy and now more will be able to get their principal reduced by Barney Frank's Fabulous Bailout Plan.

Who wants to bet that the people most likely to get the help will be the ones least needing it (flippers, et al)? People who know how to work the system will work this sucker for every penny.

Face it, we live in a cheaters culture where the fraudsters and scammers get rewarded. I used to bristle when honest people whined like this but now I know what they meant.

Anonymous said...
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