Banks getting another Federal $3 billion bailout

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Banks are getting ready to get their hands on another $3 billion being injected into the real estate market to prop up home values and delay foreclosures.

Mind you, this wrecks the real estate economy, because if values corrected like they should in current market conditions, there would be more affordable homes for consumption

And's it's a no brainer that when you bailout bad mortgages, you are actually bailing out banks, without saying you are bailing out banks

http://thehill.com/blogs/on-the-money/banking-financial-institutions/114349-banks-to-benefit-most-from-white-house-program-to-stave-off-foreclosures


Banks to benefit most from White House program to help fight foreclosures
By Vicki Needham - 08/15/10 03:05 PM ET
Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure.

[M4arc]

Does anyone honestly believe that the banks are actually going to assit home owners who are in bad mortgages or upside down in a mortgage?

Nope, didn't think so. Just like the last round of bailouts their going to put this into their cash reserves and continue on with business as usual.

And Uncle Sam keeps giving them money, amazing...

[Palmguy]

Does anyone honestly believe that the banks are actually going to assit home owners who are in bad mortgages or upside down in a mortgage?

Nope, didn't think so. Just like the last round of bailouts their going to put this into their cash reserves and continue on with business as usual.

And Uncle Sam keeps giving them money, amazing...

I can tell you first hand that the answer to that question is a resounding no.

We're trying to buy a house right now and it's been a royal PITA. It seems like some of the bigger banks have no interest in selling properties that are short sales, they'd rather take it to foreclosure and it's unclear to me why.

[mr_smiles]

I can tell you first hand that the answer to that question is a resounding no.

We're trying to buy a house right now and it's been a royal PITA. It seems like some of the bigger banks have no interest in selling properties that are short sales, they'd rather take it to foreclosure and it's unclear to me why.

Because they can write off a foreclosure.

[jklaughrey]

You think that is bad. I own 2 homes already and wanted to buy a 3rd vacation house/cabin near Lake Couer D' Alene. Have 40% to put down on the short sale of this property and bank says I am too much of a credit risk. Yet I have a secured loan for the balance from my credit union using the 2 homes I own outright as collateral. Really! You are right they would just as soon have a foreclosure, how is this helping the economy?

[armakraut]

They could have fixed the "banking crisis" a few years ago by telling depositors they were insured to 100% and letting the worst banks go under. The rights to the debt would have been sold at market prices and the houses with delinquent owners (mostly people that should never have gotten a mortgage in the first place) would have been cleared off the market.

Anybody could start a new bank in a mobile trailer, and some people have. We don't need bank bailouts, we need new banks who are hungry for work (IE new, good loans).

[Thomas M-4]

They could have fixed the "banking crisis" a few years ago by telling depositors they were insured to 100% and letting the worst banks go under. The rights to the debt would have been sold at market prices and the houses with delinquent owners (mostly people that should never have gotten a mortgage in the first place) would have been cleared off the market.

Anybody could start a new bank in a mobile trailer, and some people have. We don't need bank bailouts, we need new banks who are hungry for work (IE new, good loans).

Exactly right.

Why should the banks care about doing business all they have to do is go to the government:bad:

[jmp45]

Found out today our bank, The Huntington, dropped FDIC..

[No.6]

Sure do get tired of banks aways walking away with a bunch of money no matter what is happening. Wish I was so well protected so that every time I wanted to make more profit all I had to do was stick out my hand. Well F 'em. I've stopped using credit cards a couple of years ago and I guess now, I'll start carrying cash instead of my debit card. It's my money they're making money with, not me. May not mean much (keeping the money out of their institution-even if only for a short time), but now I understand why my Grandparents kept their money hidden in the mattress and not in the banks.

[ralph]

Sure do get tired of banks aways walking away with a bunch of money no matter what is happening. Wish I was so well protected so that every time I wanted to make more profit all I had to do was stick out my hand. Well F 'em. I've stopped using credit cards a couple of years ago and I guess now, I'll start carrying cash instead of my debit card. It's my money they're making money with, not me. May not mean much (keeping the money out of their institution-even if only for a short time), but now I understand why my Grandparents kept their money hidden in the mattress and not in the banks.

If your grandparents went through the depression, that's understandable..They got to see firsthand what lengths some of the banks went to in a effort to make up for the money they lost on the stock market when it collasped..The trust people had in the banks before the crash was,in many cases never regained..My biggest fear is what's going to happen when inflation, or hyper inflation hits... I feel that's not far off, you'll be able to wipe your ass with a dollar bill, that's about what it'll be worth...

[CarlosDJackal]

Okay, let me get this straight. First they tried to pass a law that would have seriously limited a Bank's ability to invest in certain stocks; then they offer them a bailout.

If this isn't a banking version of a welfare system I don't know what is. It's like taxing 90% of people's wages then trying alleviating the resulting starvation by offering an increased accessibility (and reliability) to food stamps!! :rolleyes:

This regime is really the worst one in recent history!!

[No.6]

If your grandparents went through the depression, that's understandable..They got to see firsthand what lengths some of the banks went to in a effort to make up for the money they lost on the stock market when it collasped..The trust people had in the banks before the crash was,in many cases never regained..My biggest fear is what's going to happen when inflation, or hyper inflation hits... I feel that's not far off, you'll be able to wipe your ass with a dollar bill, that's about what it'll be worth...

My Grandparents did go through the Depression.
And I agree with you about the Zimbabwe type inflation that is probably just around the corner. But hey, if you're deep in debt, just think a weeks pay will pay off your mortgage. Can't afford meat and potatoes, the property taxes, the gas for your car.... Oh, wait, the banks will find a way to take your 30 year, fixed 3.25% mortgage and "modify" it to reflect the current 100%/day inflation rate.
Why should I trust any institution that double dips me (generic) with near 40% interest rates on credit cards (if I have bad credit and/or behind on payments) and takes money from me via the US Government and it's confiscatory tax policy?

[ralph]

My Grandparents did go through the Depression.
And I agree with you about the Zimbabwe type inflation that is probably just around the corner. But hey, if you're deep in debt, just think a weeks pay will pay off your mortgage. Can't afford meat and potatoes, the property taxes, the gas for your car.... Oh, wait, the banks will find a way to take your 30 year, fixed 3.25% mortgage and "modify" it to reflect the current 100%/day inflation rate.
Why should I trust any institution that double dips me (generic) with near 40% interest rates on credit cards (if I have bad credit and/or behind on payments) and takes money from me via the US Government and it's confiscatory tax policy?

I agree, you can't ever trust them..Basically, in the last couple of years, they've showed their hand..Smart people will take heed when it comes to taking on any more debt....Speaking of inflation, I have a friend who collects WWII German uniforms, etc also dabbles in Civil War stuff..One time he showed me a Deutsche mark from the early 20's, About the time the U.S. Britian, France handed the Germans the bill for WWI..It was a $ 1,000,000 mark note..worth at the time, about .05-.10cents American...

[Thomas M-4]

A little bit of thread drift here. One of my Great Grandmothers during the depression actually owned a lot of land in north Alabama. As the story goes during the start of the depression she was going to pull her money and land holdings from the bank. The bank begged her not to that if she did they would have to close the bank. So she didn't she passed away a year or 2 before WW2. Her children went to the bank after she had passed and they were denied any of the land holdings. And at the beginning of the war the bank sold the property to US GOV. Guess were part of RedStone Arsenal sits. My Grandfathers Brother spent many years trying to get compensation for the family with no luck .

As long as the banks can cry meltdown to get billions of tax dollars why should they worry about trying to give loans to people. The Mafia gives better rates on borrowing money than the banks hello WTF!

[ForTehNguyen]

theres some BS new unemployed benefits if you're underwater on your house and unemployed. These loans are even more reckless than these no income or credit check loans. Basically whats going to happen is people who are unemployed (the first qualification to get this) are going to get $50k on a house they are underwater on.

So let me get this straight, they want to loan $50k to a person that they know doesn't have a job, to pay for a $300k loan on a house that's worth $200k. Wheres the collateral for that loan? How freaking stupid can people be to think this makes economic sense. This is even more reckless than the no income no credit check loans, because now you KNOW they are unemployed because thats one of the requirements to receive these loans. Especially now that there's 99 weeks of unemployment benefits, how is someone suppose to pay back this $50k, zero interest 2 year loan, when there's no incentive to look for a job because of 99 week benefits.

:suicide: