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?
Senator Hillary Clinton spelled out the details of her subprime bailout plan Wednesday, calling for a 90-day moratorium on foreclosures and a five-year freeze on the interest rates of adjustable rate mortgages.
Two days ago, she proposed heaping more money on the retard pile.
The Clinton package is to include $30 billion for an emergency housing crisis fund for states to help low-income families unable to make mortgage payments and in danger of losing their houses.
Bush, being a moron, is also for moving forward with his own plan to help the idiots who bought houses they couldn't afford.
The Bush administration reached an agreement with the mortgage industry on Wednesday on a plan to freeze interest rates for up to five years for a portion of the two million homeowners who bought houses in the last few years with subprime loans.
The plan, hammered out after weeks of talks among Treasury Department officials, mortgage lenders and Wall Street firms, would allow distressed borrowers who are current on their payments to keep their low introductory rates and escape an increase of 30 percent or more in their monthly payments when the rates expire.
Fuck you. You know why I didnt buy a Porsche last year? Because I couldnt afford one. And I didnt look for an idiot to loan me the money that I didnt have. All of the assholes who bought houses they couldnt 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 cant 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.
Sometimes Being An Asshole Doesnt Pay Off
In 2005, Congress passed one of the worst bills in the history of our country: The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It was crafted by the credit card industry and passed with bi-partisan support, then shoved up our collective asses.
In 2005, 1.6 million Americans were filing for personal bankruptcy protection. The process is similar to corporate bankruptcy and allows debtors to come up with creditor-reviewed and court approved plan to write off some debts, pay off some and get a fresh start. But that obviously wasnt working for credit card companies. After years of giving cards to unworthy recipients, they wanted them to become financial slaves instead of changing their lending practices. The bill basically rewarded the credit industry's egregious behavior, and encouraged more of the same. The bill did nothing to rein in credit card solicitations or put caps on interest rates or late fees, over-the-limit fees and other penalties. Congress has held hearings on the deceptive practices that credit card companies use to default on agreements and FearTheReaper has officially designated them as Motherfuckers.
So, the bill forced more people to file under Chapter 13, which forces consumers to pay back debt over five years. They had been filing under Chapter 7, which allowed them to keep some assets, while getting rid of debt. The Senate rejected 25 Democratic amendments to lessen the impact on bankrupt Americans, including one that would let people keep their homes if their debt was the result of medical expenses.
Not surprisingly, this has affected people who live on the edge, take home a paycheck, still barely get by every month, cant afford any sort of hiccup in their lives and quickly fall into debt if their car breaks down or they get sick.
According to LCCR, divorced women are 300 percent more likely than single or married women to find themselves in bankruptcy court because of the combined effects of lower wages, reduced access to health insurance, and the financial strain of rearing children alone.
African American and Latino home owners are 500 percent more likely than white homeowners to find themselves in bankruptcy court, largely due to discrimination in home mortgage lending and housing purchases and to inequalities in hiring opportunities, wages, and health insurance coverage.
Ah, check out that last sentence there and focus on these words: Home mortgage lending. Anyone noticed a problem in that area lately? Turns out when you fuck people over, you get fucked back just as hard.
Washington Mutual Inc. got what it wanted in 2005: A revised bankruptcy code that no longer lets people walk away from credit card bills.
The largest U.S. savings and loan didn't count on a housing recession. The new bankruptcy laws are helping drive foreclosures to a record as homeowners default on mortgages and struggle to pay credit card debts that might have been wiped out under the old code, said Jay Westbrook, a professor of business law at the University of Texas Law School in Austin and a former adviser to the International Monetary Fund and the World Bank.
Two words, Washington Mutual: Suck it.
Be careful what you wish for, Westbrook said. They wanted to make sure that people kept paying their credit cards, and what they're getting is more foreclosures.
People are paying their credit card debt over their house payments because they really dont have a choice. They cant declare bankruptcy anymore and save their home, so they are walking away from their homes.
Of customers who are at least three months late on their mortgage payments, 70 percent are current on their credit cards.
Even when they do declare bankruptcy, the mortgage rates are resetting six months later to a level that they cannot afford. That then hurts the mortgage companies, some who are the same who lobbied for the restrictive bankruptcy bill, like Washington Mutual.
Bad mortgages slashed Washington Mutual's profit by 72 percent in the third quarter from a year earlier. Citigroup's third-quarter earnings fell 57 percent on mortgage losses. Bank of America stopped so-called warehouse lending to mortgage brokers after its profit declined 32 percent in the same period. Morgan Stanley subprime losses will cut fourth-quarter earnings by $2.5 billion.
You made your bed, big companies, now lie in it.