Subprime Freeze: The LAST Batch Of Your Emails

Here's the last series of emails I'll post on the reaction I got on the subprime interest rate freeze idea. Thanks to everyone who's been writing in. It's meant a lot to hear from you.

I hate to see people lose their homes - but if they get an interest rate break THEN THE REST OF US SHOULD ALSO.

The Paulson Plan is a win win for all parties. It benefits the homeowners, the lenders, the credit market, the economy and society at large. We need to deal with what is; not what should have been. The alternative, ignoring the sub-prime mess and letting the free market correct the problem over time, is to have a downward spiral that will negatively effect all the parties for the next two years.

Terri M.:
I'm so angry I can't even begin to tell you. This, in my humble opinion, is nothing more than trying to save Wall St. The proposal is going to be impossible, from a servicing perspective, to enact. This is still going to require re-underwriting. Reverifying income, reappraising because of lower values - just shaking my head (but my eye is starting to twitch from tension)

Is it too late to sign up for an unsustainable loan? Count me in! I'd like a piece of the Speculator Relief Bill the government is brewing up (and handing out).

No! The irresponsible over-spenders should not be given a mandated mortgage bailout. This mess is just the wake-up call to get Americans to stop drowning in debt. They must stop borrowing extensively every time they want something, but don't want to wait and/or save for it. Let them all get second jobs or be renters!

Why should we bail out speculators. If you took an ARM mortgage out that makes you a speculator. You gambled on where you thought interest rates were going. What makes me laugh is the amount of people that lost. Rates were at historic lows...WHERE DID YOU THINK THEY WOULD GO FROM THERE!!!!!!!!! Up Up and way. This country is turning into a JOKE.

The people who keep crying “bailout” and free markets probably don’t have a house next door being foreclosed resulting in an instant 20% drop in the value of their own home and other neighborhood homes - let alone the aesthetics of the neighborhood. And they probably also have a job. So they’re feeling pretty smug right now. After all, a “bailout” is all about other people’s or institution’s situations – these “bailout” people are simply above it all. However, I suspect, when the first foreclosure happens in their neighborhood or they get laid off from their job due to the spreading weakness in the economy from the fallout of this mess, you won’t be hearing them cry about bailouts and free markets – instead they’ll be the ones looking for a “bailout”.

Stephen M.:
While the rate freeze plan sounds like a right thing to do to bolster the historically low approval rating of this administration, I question who ultimately will be paying for this? The banks? Homeowners who don’t qualify? Tax payers? Investors and institutions near and far who bought these mortgages, CDOs, CLOs and CDO-squared? Our economy? I cannot imagine that a win-win solution to a mess as huge as the subprime slime would really exist with nobody getting hurt. Who is going to be left standing when the music stops?

ENOUGH IS ENOUGH, stop playing politics and let the market correct.

Conlif J.:
Here we go once again with the government trying to bail out big business, it is not about trying to keep individuals in their home but to stop the financials from burning to the ground. They, the financial companies knew exactly what they were getting into. They were making so much money repackaging these loans to investors everyone had to get on the band wagon, they fell asleep while celebrating with their Cuban cigar and the wagon caught fire. They gambled and lost. Yes, gambled. Let it burn itself out.

Questions? Comments?