NEWS: I Hope You Lose Your House, Idiot

POLITICS: I Hope You Lose Your House, Idiot

Yes, indeed, you read that headline correctly. I hope many of the idiots who bought houses during the bubble lose them. It is my wish because they are fucking morons who hoped to make a quick buck and caused housing prices to rise far beyond what they are worth. Those of us, who sat it out and shook our heads at the fools grabbing every property around, are now sitting back watching as prices come back down. But it is going to be a long wait because of retarded politicians, like Hillary Clinton and George Bush.

Last month, Hillary proposed economic aid for idiots who took loans they could not afford. Basically, she wants to bail out financial morons and fuck over the smart investor who sat the housing buying frenzy out. She wants to fuck over the guy who already got fucked over by the jump in housing prices because of morons. Did I mention she is an idiot?

Two days ago, she proposed heaping more money on the retard pile.

Bush, being a moron, is also for moving forward with his own plan to help the idiots who bought houses they couldn't afford.

Fuck you. You know why I didn’t buy a Porsche last year? Because I couldn’t afford one. And I didn’t look for an idiot to loan me the money that I didn’t have. All of the assholes who bought houses they couldn’t afford should now lose their homes. Because they are idiots and idiots deserve to suffer. Buddha said that.

If the government steps in to help these assholes, then taxpayers and future borrowers will pay for the bailout. Only two parties should be paying for this mess: The buyers and the lenders. A bailout only delays the inevitable, propping up shitty credit and allowing idiots to continue to make more idiotic financial choices.

When the stock market crashed in 1999, people began to invest in property. Then property rates began to shoot up. The increase in property prices far surpassed wage increases, which should have been a warning sign for anyone with a brain that the process would not sustain. Unfortunately, we live in a world of morons. People thought they would never be able to afford a home, so they started taking loans they could not afford. And companies began giving loans to people who were not credit worthy. These are the two parties who should suffer, not the rest of us.

Cheap, shitty credit created a housing bubble. In the old days, banks would attempt to minimize risk by requiring that purchasers not buy a home that consumes more than 25% of their income in mortgage payments. And they would ask for a significant down payment, like 20%. But then banks began to run out of people to sell loans to, because not everyone was meeting the requirements. So, they threw the requirements out the window. People began paying more and more of their income to mortgages. Now the level has risen from an average of 25% to 44% of gross income. Anyone who takes a loan or gives a loan that would require someone to pay 44% of their income to a mortgage is a fucking asshole who deserves to lose. And I should be able to laugh at them. After all, it is America, where we laugh at idiots and enjoy their suffering.

So, now a bunch of morons, who bought during the bubble, are going to end up owing more money on their home than it is worth. When your home is worth less than what you owe on it, it is called “negative equity.” Once it occurs, homeowners are trapped. They can’t sell but they still have to make payments. And there are a lot of people out there who will find themselves, or already find themselves, in the negative equity trap, because existing home sales more than doubled between 1989 and early 2007.

It will not end anytime soon, especially if the government attempts retarded band-aid fixes, like the ones proposed by Bush and Clinton. This exact same situation occurred in Japan in the '90s. The process lasted 12 years up, 12 years down, with a decline as long as the increase. Billions in yen were owed on homes that were worth half the mortgage. Many went into foreclosure, rather than pay inflated prices. The banks were left with “non-performing loans” and houses that no one wanted or could afford to buy. Without income, banks had no money to lend, which lead to a downward spiral. The entire economy stagnated.



"As it goes up, it goes down," if I may quote Guided by Voices. That is what we are facing. The sooner we let the process take place, the sooner we can get it over with. Assholes like Bush and Clinton will only prolong the pain with their bullshit plans. They will never be able to stop it. So, to the idiot: I hope you lose your home, and I hope it happens sooner, rather than later.

Take it easy, son. Go watch the care bears or something.

WOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH!

Anyway, I love how Bush's idea of smaller government is so completely and utterly detached from reality.

Not that it matters but I don't remember the crash occurring in 1999, per se (though that is when the fed started raising interest rates again). The market peak is supposed to have been March 2000.

SPOILERS! (Click to view)

In any case whenever there is a bail-out it means that the shit has hit the fan. I don't know if you are familiar with an early hedge fund called Long Term Capital Management. It grew so big and rich and leveraged that when it was clear it was going to be doing a bellyflop from the high dive board into this busy swimming pool called the US economy, the fed convinced all of the banks to get together to create a bail-out.

That time the banks bailed us and the gov out. This time the gov is bailing the banks out not the homeowner tards you are referring to.

I'm one of those idiots. Fuck...

America is a county where people always have to "one-up" and move faster than their wallets may be ready to allow them to, which is why we are in such huge debt. Am I living in the house I want to live in for the rest of my life? Hell no. I didn't even have any say in this house I now own...the boyfriend bought it 6 years ago and I moved in 3 years after that. I am living in a decent house that I can easily afford right now (right around 20% of my income for the mortgage payments), and I won't be moving until I am financially secure to do so. Or until he dumps me...whichever happens first.

Wow everything is absolute with you I see. I cannot speak for the American market with great accuracy but Alberta here has experience a huge spike in housing over the past 4 years to match our cousins to the south. Prices have more then doubled. Many up here though had to buy because a small group of property owners drove up rental prices to the point that a $1500 mortgage was less then renting for $2000.

Now I do agree some greedy investors are partly to blame and I dont think they should be bailed out but if people own their residence and no other property why not give them some assistance.

for once i cannot find a reason to disagree with you.

This does piss me off. I've worked damned hard to build up my credit rating, in preparation for when I decide to finally buy a house. Too damned hard to be willing to pay because someone wanted a house they couldn't afford. Too damned hard to feel sorry for banks that got greedy.

Fuck them all, I'm gonna build a yurt!

This plan is likely to little too late, see the graph from Seeking Alpha. The graph starts with January 2007 so moving over 11 to 13 month look at the dark gray which represent sub-prime ARM we are about half through the reset and at the top of the curve.

Edit to add image, right click to see the complete graph:


Three groups were hurt by the sub-prime loan mess.
First, are the RE speculators who were buying homes under construction by borrowing the down payment, counted on the appreciation in value, and would resell either before construction was completed or shortly after at a profit. These were not sub-prime borrowers they have been hurt by the credit crunch the unwillingness to loan more money to additional borrowers. No sympathy for these folks it is risk and reward and they ended up SOL.

Second, we have the unsophisticated (financially) first time home buyers who may have contributed to their own situation for example inflating their income on a no-no loan (no income no credit verification) or were mislead by the mortgage broker. Please see today's New York Times for Baltimore Finds Subprime Crisis Snags Women. These people are who I feel bad for but without their foreclosures housing prices will not readjust to correct - market level.

Third, are the banks who no one forced to develop products like the no-no loan or invest in or make su-prime loans. While buckets of money were made by loaning money to poor credit risk individuals for the purchase of homes, cars, or anything else it was still a risk - borrow at a low rate + loan at a higher rate keeping the number of defaults below x% = profit . That risk was not controlled or monitored correctly by too many institutions so now we replace the chairmen, layoff workers, cut the dividend, be bought by another institution, and see the stock price drop. Shit happens no sympathy here too. (Disclosure I work for a large financial institiution and will be personal impacted by this mess - shit happens.)

For the most part, I think the "Flip this House" douchebaggery that turned the housing market into the same kind of casino mentality that exists in the stock market should take the fall for this. That being said, the individuals & families that are the unfortunate (and perhaps willing) victims of this mess will lose the most. They may have been unwise in their choice but I feel their intentions were less about profit & more about some sort of domestic stability. I don't think we should equate their attempts to own a home with buying an expensive German sports car. We might, however, question a culture that has promoted (or at least, not discouraged) a "keeping up with the Jones" mind set. Then again, I've always tried to consider my house a home & not an investment.
The suspicious part of me is of the opinion that both of these bail out plans are more directed at bailing out banks, the speculative investment industry & the real estate companies. If the feds & politicos were actually interested in fostering a culture of affordable & low risk housing in this country they would be looking at ways to regulate & adjust real estate/housing costs based upon a regionally determined median income. What is most sickening to me is the politicians tendency to wrap themselves in the flag of "helpin' out tha po' folks" while, in fact, they are giving a hand up to corporate cronies & shoring up an artificial economy that has about as much substance & true value as the housing bubble.
It's time to put away the band aids & patches and start constructing an economy that can sustain itself.

SPOILERS! (Click to view)

Less this...


and more this...

and thank you IDGAS stating things in a better "I know what the fuck I'm talking about" way

artpie said:
For the most part, I think the "Flip this House" douchebaggery that turned the housing market into the same kind of casino mentality that exists in the stock market should take the fall for this. That being said, the individuals & families that are the unfortunate (and perhaps willing) victims of this mess will lose the most. They may have been unwise in their choice but I feel their intentions were less about profit & more about some sort of domestic stability. I don't think we should equate their attempts to own a home with buying an expensive German sports car. We might, however, question a culture that has promoted (or at least, not discouraged) a "keeping up with the Jones" mind set. Then again, I've always tried to consider my house a home & not an investment.
The suspicious part of me is of the opinion that both of these bail out plans are more directed at bailing out banks, the speculative investment industry & the real estate companies. If the feds & politicos were actually interested in fostering a culture of affordable & low risk housing in this country they would be looking at ways to regulate & adjust real estate/housing costs based upon a regionally determined median income. What is most sickening to me is the politicians tendency to wrap themselves in the flag of "helpin' out tha po' folks" while, in fact, they are giving a hand up to corporate cronies & shoring up an artificial economy that has about as much substance & true value as the housing bubble.
It's time to put away the band aids & patches and start constructing an economy that can sustain itself.

SPOILERS! (Click to view)

Less this...


and more this...

and thank you IDGAS stating things in a better "I know what the fuck I'm talking about" way

I call BS that house is obviously corporate shilling by the Dodge corporation to seel fuel inefficient houses, it's right there in the windows for christs sake.

i've got my eyes on you. if you and your ilk so much as think of starting up a horde, i'll build a wall so high, you'll snap your neck when you try to look up to the top!

Yes, heaven forfend that the federal government penalize the "smart investor" by trying to minimize the number of low-income families who'll wind up getting evicted from their homes.

Sinking ship!

But dude... it runs on hippies! You can get up to 17 MPG with a full drum circle!

the buyers, along with unscrupulous realtors, lenders, and appraisers all share the blame

That would be fine if they were the only ones who were also sharing the cost. But those of us who haven't had anything to do with this are still fucked.

How exactly are you fucked?

At least we've caught up with the Japanese.

Hai five!

because all of this is going to make banks frightfully unhappy and next to unable to give out even the older, safer loans due to them losing staggering amounts in this whole fiasco. so the people who are going about things in a responsible manner, who can easily pay on their mortgage, who waited to try to get a house will now have to wait even longer. they now pretty much have to wait until everything resets itself in order to get the loan that they wanted and can afford right now for the house that they planned on having now. granted, houses might be better priced in the end, but that's small comfort to those who were smart and planned properly to be ready for house payments right now.

furthermore, due to banks losing money, it's not just house loans and mortgages that suffer. without the funds to back them like they had before, getting a loan for most things will probably get a bit harder for those who might have been just over the line on getting one.

at least, that's what i'm gathering from all the info i've come across. take with grain of salt, because my credit's so poor, loans are a far off dream.

What's all this crazy talk about living within your means?

Fuck if I know but they gave me another credit card. Retards.

I don't claim to be a financial genius or anything like that, so feel free to correct me if I get something wrong.

To my mind, a bail-out plan means the government would use tax dollars to help folks who had no business buying beyond their means. I have no problem with people trying to get a better house, but you can only afford what you can afford.

Also, this has the potential to play havoc with interest rates, which would effect me if and when I try to get a house loan.

Plus, since banks aren't making money from their foreclosures, since they can't sell them either, they could become overly strict on loans, making them much harder to get.

So, while it is sad that people could be losing their homes, I find it very hard to have too much pity when they had other options open to them, but chose to gamble on a risky venture.