This just proves that Bernanke is completely out of touch with what it’s like to be an investor. He’s pure academic and knows nothing about wealth/reality! “Ok, bankers… just write down the principal. Send Joe6pack a letter and tell him you only owe us $50k now instead of $100k. Forward it to your bond holders, shareholders, etc.”
If we all drive 100 miles an hour on the highway none of us should get a ticket right???
Bernanke lives in his own world. If we let everybody off of the look for their responsibilities this world would collapse
I guess he’s saying this in response to www.youwalkaway.com In many states you can walk away from your house without any recourse. If you’re underwater it makes perfect sense especially given how cheap rent is relative to ownership.
I was all fired up when I saw this on the news. Once again, this kind of bull***t only encourage more reckless behavior in the future (borrow, lending, investing practice). We are living in a world without any consequences. WTF!! Just like sports, no pain, no gain. In order for us to get of this mess, serious pains are needed. Once again, it proves that if you are responsible, prudent, and stuck in the middle class, you are completely screwed. “Ring, ring, is thsi Countrywide? I have a 30 yr fixed at 5.5%, and I pay my mortgage on time for the past 8 years, my current balance is $100K, please reduce to $50K or I will have the Fed Chairman on your ass”
Seriously…I guess it’s that easy. Call’em up and tell them that your house is currently worth only $60k so you’d like your mortgage to be reduced from $100k to $50k or you’re out of there! Tell them walkaway.com & Bernanke said you could. I guess it’s nothing new. I once leased a car. They grossly overestimated the terminal value. Towards the end of the lease they called me and lowered it 10%, then 20%, then 40%. I still turned it back to them where it went to auction i guess.
Just visited the www.youwalkaway.com site. What pissed me off the most was seeing all those “warm and fuzzy family picutures”. No responsible parents/adult will ever allow their family to be in this kind of situation to begin with. This is the same kind of “warm and fuzzy family pictures” you will see at the beginning of cheap credit and housing boom===>>>You and your family deserves a home, you deserve your American Dream!! Screw the word “deserve” WTF!! If you can’t be disciplined enough to save 20% for your home…I am sorry, you don’t deserve to be in a home. For the part, I do believe lender share part of the blame.
Keep in mind, your bitterness will eat you up inside. It was the same emotion that turned annekin skywalker to the dark side.
virginCFAhooker Wrote: ------------------------------------------------------- > Keep in mind, your bitterness will eat you up > inside. It was the same emotion that turned > annekin skywalker to the dark side. Haha, that gave me a bit of a laugh, It seems as if personal responsibility is a thing of the past, I have a hard time faulting lenders because I can only imagine if they did turn away people it would come off as some form of discrimination. I agree I think that the best way to get through this is to just ride it out, and *gasp* work through your own mistakes
virginCFAhooker Wrote: ------------------------------------------------------- > Keep in mind, your bitterness will eat you up > inside. It was the same emotion that turned > annekin skywalker to the dark side. Thanks for the reminder!!!
KF Wrote: ------------------------------------------------------- > virginCFAhooker Wrote: > -------------------------------------------------- > ----- > > Keep in mind, your bitterness will eat you up > > inside. It was the same emotion that turned > > annekin skywalker to the dark side. > > > Haha, that gave me a bit of a laugh, > >I have a hard time faulting lenders > because I can only imagine if they did turn away > people it would come off as some form of > discrimination. I agree I think that the best way > to get through this is to just ride it out, and > *gasp* work through your own mistakes Oh no. Don’t get me wrong. I do believe personal responsibility is THE factor. You don’t need a lender to tell you if you can or can’t afford to buy a house base on $1500/month income.
virginCFAhooker Wrote: ------------------------------------------------------- > This just proves that Bernanke is completely out > of touch with what it’s like to be an investor. > He’s pure academic and knows nothing about > wealth/reality! > > “Ok, bankers… just write down the principal. > Send Joe6pack a letter and tell him you only owe > us $50k now instead of $100k. Forward it to your > bond holders, shareholders, etc.” FWIW, this was what the FDIC did with loans in the 90’s. Well, what would happen on the commercial loans that were going to default was that the FDIC would sell the loan for about $1,500 to an LLC (quite commonly owned by the Borrower’s wife) instead of forgiving it, as loan forgiveness is a giant tax liability. So I guess my point is, do we want banks to start doing this now or should we just wait until they go under and the FDIC takes over and forgives more debt?
ws Wrote: ------------------------------------------------------- > Just visited the www.youwalkaway.com site. What > pissed me off the most was seeing all those “warm > and fuzzy family picutures”. No responsible > parents/adult will ever allow their family to be > in this kind of situation to begin with. This is > the same kind of “warm and fuzzy family pictures” > you will see at the beginning of cheap credit and > housing boom===>>>You and your family deserves a > home, you deserve your American Dream!! Screw the > word “deserve” WTF!! If you can’t be disciplined > enough to save 20% for your home…I am sorry, > you don’t deserve to be in a home. For the part, > I do believe lender share part of the blame. Ahmen. Where did this mentality come about in which people no longer should be required to take responsibility for themselves???
virginCFAhooker Wrote: ------------------------------------------------------- > Keep in mind, your bitterness will eat you up > inside. It was the same emotion that turned > annekin skywalker to the dark side. Post of the day. If it weren’t for the guy who hooked with his boss, post of the week!