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Wh else are we "bailing out" ?

joeaf1911a1joeaf1911a1 Member Posts: 2,962 ✭✭
edited September 2008 in General Discussion
I thought it was only for homeowners. Now I see blurbs for bailing out credit card debts, student loan debts, car payment debts and the likes.
Probably next will be swimming pool loan debts, boat loans and God only knows what else will be attached for the taxpayer to pay for these "unfortunate people" that went overboard on borrowing.

Comments

  • kristovkristov Member Posts: 6,633
    edited November -1
    Joe, it is the snowball effect. Once this thing started rolling it just gathered up speed and starting growing larger and larger. Every lender is looking for a fast bailout becuase they all know that if someone can't make their house payment they sure as hell won't be paying their credit card bills or making car payments. Right now if a bank did repo someone's SUV or pickup truck the bank can't sell it because car lots are already filled with end of lease turn ins for these gas hogs, which no one wants to buy.
  • Spider7115Spider7115 Member, Moderator Posts: 29,714 ******
    edited November -1
    They all want to dump their "C" (high risk) and "D" (garbage) rated paper to the government and keep the "A" and B" paper for themselves. Even if the government only pays them the net value without any interest, the banks will still show a profit. The government then claims it will "make a profit" from the interest on the notes but most of that "D" paper was made to deadbeats who either will not or can not ever pay and never should have been granted a loan in the first place. Let the lenders eat it. [:(!]
  • kristovkristov Member Posts: 6,633
    edited November -1
    quote:Originally posted by Spider7115
    They all want to dump their "C" (high risk) and "D" (garbage) rated paper to the government and keep the "A" and B" paper for themselves.


    With the high standards of ethics that lenders maintain I am sure that thought never entered into anyone's mind [;)].
  • joeaf1911a1joeaf1911a1 Member Posts: 2,962 ✭✭
    edited November -1
    Time was when paying a debt was a sacred obligation. However in this
    P.C. world of today it is something to leave to someone else.
  • kristovkristov Member Posts: 6,633
    edited November -1
    quote:Originally posted by joeaf1911a1
    Time was when paying a debt was a sacred obligation. However in this
    P.C. world of today it is something to leave to someone else.


    I can understand what you are saying Joe, to your generation there was no such thing as easy money, credit was something to be used with extreme caution and having to borrow money or taking out a loan for anything other than a house or perhaps a car was cause for alarm. There were no credit ratings back then because everyone knew who was trust worthy and who was a dead beat! Those days are finished [V].
  • Spider7115Spider7115 Member, Moderator Posts: 29,714 ******
    edited November -1
    The most frustrating part is that a lot of this paper CAN be sold in the private sector, either domestic or foreign. However, since the government stuck their nose in and offered a "bailout" package, the lenders are just sitting back and waiting to see what kind of offer they'll get from the government first. The paper will then get sold to the highest bidder and the CEO's will take their "bonuses". [:(!]
  • FatstratFatstrat Member Posts: 9,147
    edited November -1
    There is also talk of bailing out Union pension plans.
  • fishermanbenfishermanben Member Posts: 15,370
    edited November -1
    quote:Originally posted by joeaf1911a1
    Time was when paying a debt was a sacred obligation. However in this
    P.C. world of today it is something to leave to someone else.


    My Grandfather was a banker his entire life. His motto was, "The worst thing a banker can do to a person is to over-burden them with debt."

    The banks' hold a responsibility in it too.

    Ben
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