Chapter 3 Notes
Robert's Topics > Chapter 3 Notes > The Name of the Game is Debt
Steve Kovacs - 3/21/2009 5:57:57 PM
The majority is looking for bailout. Generally there is a disastrous financial education all over the world. It looks to me this is done on purpose by the political parties. This way they have a huge mass to manipulate and obtain votes promising give outs during the election campaign they never had the intention to keep.
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hellspark - 3/21/2009 11:17:40 PM
Bailouts = Bad
I have never suffered these circumstances. I don't have a personal point of reference from which the world ever looked so bleak. I can only imagine how dark things can look from that vantage point.

Even though I feel sorry for all involved (including the failing banks) I feel bailouts essentially are a reward for risky behavior. The borrower was in over their head... the bank allowed them to get in over their head. Packaging mortgages into leveraged derivative securities was risky behavior Bailing all these parties out does not let the lesson be learned.

Not only that, but isn't a Mortgage a legal contract? Is it even legal to step in and mass modify mortgages? How can you have legal recourse when the terms of the mortgage mean nothing?
wadesuhr - 3/22/2009 3:22:29 AM
Personal responsibilty
Who is at fault when a foreclosure happens? The mortgagor/borrower. Just like medical advice, second or third professional opinions for financial decisions is wise. Would a locally owned community bank have written a high-risk complex mortgage to a financially illiterate borrower? Maybe they would have, but right now it's the big banks that need the bailout not the small banks. The small banks must have done business like they always have and not lent money to people that could not repay. Financially illiterate people that are facing foreclosure are learning a lesson. You are responsible for you. It's the borrower's fault they got ripped off because the borrower probably didn't ask the right questions or know the right questions to ask. Ignorance of the law excuses no one, which is true in financial "laws" and criminal laws.

lincolnrogers - 3/22/2009 7:43:50 AM
Mercy should be given to the middle class
I agree it does take away an education. I believe that a little justice and mercy must be. I am 24 and do not own a house at the time. But my true feelings are that the banks should be punished for creating this mess in the first place. The problem is the gov. allowed it. Just last week the government was mad at the AIG people for giving out millions of dollars in bonuses. The problem was they gave out the money and fell into the same trap as the banks. The governemnt was so stupid that they didnt even learn the lesson on lending money. Why lend money to an uncle joe who still owes aunt Cathy 10,000 dollars. I personally think that those who bought a primary residence should be allowed to pay what the actual value of it is today. We keep bailing out the wrong people! We bail out the poor, and we bail out the rich. The middle class gets screwed!! It might be better to be poor than be in the middle class complaining about why we are getting taxed so much.
Eklutna - 3/22/2009 11:26:45 AM
Bailouts are not the answer. As with any event in life, there is a "Good" aspect and a "Bad" aspect to a foreclosure. IF lessons from a painful and scary foreclosure can be learned, than the process may IMPROVE an individuals financial IQ. What better wake up call can there be? What a compelling reason to finally say "I will take charge of my financial education!"
Aikahi Elementary - 3/22/2009 12:20:31 PM
Debt and Foreclosure
I agree with everyone here that we should have let the chips fall where they may, but then the gov't couldn't position itself to be the rescuer and bring us one step closer to socialism.

I wondered for years how the housing boom was sustaining itself but never understood what was behind the curtain pulling the levers (Wizard of Oz). I am scared about the future and what we are headed for, but I also am scrambling to educate myself and take educated risks.

It all starts with being willing to take personal responsibility for the bad as well as the good decisions we make in our lives. Even if someone intentionally steals from you, only you can control your perspective and choose to be a victim or learn better how to spot a thief and keep moving forward.

I am glad to be at the fishing hole learning to catch bigger and better fish with you all.
chessnic - 3/22/2009 5:36:40 PM
Debt - chapter one
Saying the name of the game is "debt" is baffling when it is "credit" that creates the illusion of money. Moreover, emphasizing "debt" puts the onus on the borrower who was sold time-bomb "credit" in the form of usurous credit cards, subprime loans, their derivatives, and credit default swaps.

Dragonslazer - 3/22/2009 7:07:27 PM
As far as I know, bailouts are a one way street, right to the rich, the very corporations that caused this economic mess that where in. I don't know of any bailout that is going directly or indirectly to anyone who is or about to loose their home.

Life lessons are trial and error.

Loosing one's home or personal property du to economical ineptitude is in my opinion no big deal, I know I've been there. You take your lumps and more on, and if you have any intellect at all, you learn from your expeirances in life, both good and bad.

I think one of the biggest problems people have a hard time overcoming when life deals you a bad hand is, their value in relation to what they own. Meaning that somehow their house and personal possessions is a reflection of their worth or accomplishment. Don't get me wrong, I too like a big house and all that life has to offer in products and services. But there is a fine line on accumulating such items. When an economic situation changes and threatens one's life style, being able to look at the big picture in relation to what's happening and the ability to learn how, why and what one can learn from this experience, is I believe the most important lesson of all. I personally may loose my house, not because I lost my job, or don't our pay bills, or are unable to pay our bills. It's all do to the way the banks have change their lending practices since September 2009, and we don't fit their new model.

I wrote a little something about how the credit crises has effected Canada and our ability to keep our house, which has nothing to do with our ability to pay or loss of a job, or even our credit rating.

The following is an excerpt from my blogs. http://varyingviewpoint.blogspot.com/ or http://varyingviewpoint.com/.


The Bank of Canada lowers interest rates to make it more affordable for consumers to borrow.
The politicians say to the banks "lend money". The banks say "we are lending money". And yet the credit freeze is still frozen.

Well, the truth is banks are lending, but not in a way most people think, and the way they are lending now will not stop the downward trend of the economy. If anything it might exasperate it more to the down side.

The fact is, the banks have changed the rules on how they lend money and provide credit from just 6 months ago, which has nothing to do with one's own credit rating.

I'll give you an example of what and how the banks in Canada were doing business then as opposed to now, and you will see that lending money is not what it used to be.

If interested you can click onto http://varyingviewpoint.blogspot.com/ or http://varyingviewpoint.com/ for the story.

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katiem2 - 3/22/2009 7:35:35 PM
Bailing ANYONE and OR Company/Cooperation is not the answer. You fail because your a failure, learn from it and try to be a success next time around. Bailouts are the dumbest thing I've ever heard of and I'm just learning. BAD investing I tell you bad.
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a_eritano - 3/23/2009 5:15:57 AM
Do you think this is a conspiracy?

I work for an immegration lawyer. US government is now offering "Green Cards" to investors who invest one million dollars each to US company. Many of the newly rich Chinese millionaires are coming to the US investing in the foreclosures.

Does anyone think that this is not only a leagal bribery but also a conspiracy to get people to "use" the mighty dollar power?
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