another one bites the dust

[Bonibelle]

Sadly, it looks like Circuit City is done. http://www.circuitcity.com/closed.html I say sadly because so many people are losing their jobs. YET...we as taxpayers are still bailing out the banks who were the root of all this mess to start with.
I think the government should be able to hit all those banking execs who raked in the huge bonuses with HUGE taxes.  

[Vanguard]

What are we going to do with the politicians who forced the banks to make the sub-prime loans?  What about the politicians who said we didn't need to regulate Fannie Mae and Freddie Mac.  That wasn't Bush.  It was Barney Frank.

I feel bad for the employees of these companies, but its not the compensation of the execs that is putting them under.

[Swell-Tub]

I find it funny that people think if you are rich then you should pay more taxes. So work hard and then support the ones who can't make as much. I think charity is a great thing but being forced is socialism.

I think it is poor management when boards and stockholders agree to contracts that allow CEO's to make hugh sum's of money for such poor performance.

And yes greed and feeling sorry for the low income population caused the mortgage crisis. Giving loans to people who could not afford the payments because we think they deserve a chance of home ownership is a bad idea. Barney Frank is like a CEO who makes too much salary for a failed policy and yet he gets to keep his job.

Now I'm so stressed I need to go sit in my hot tub. Wait, since I'm rich enough to own a hot tub I guess I need to help buy one for a homeless person in Chicago.

[Bonibelle]

Yeah Vanguard you are right...that "Share the wealth" mentality really did us in. Share the loans even if they can't be paid back. But ultimately who was in the driver's seat? Who stood to benefit from all these loans IF they were paid as they should have been? NOT the politicians, but the banks.. IF the government says to load your spa showroom with hundreds of tubs in anticipation of the stimulus package checks, are you going to buy tons of tubs to sell, or are you going to look at the reality and say they will never buy tubs with those checks? And then if you do buy all the tubs in anticipation should you get a huge bonus when they don't sell?  Sorry maybe I don't understand all of this but I'll be darned if I understand why if you are successful you should pay more back. An across the board tax rate would resolve everything..you still pay based on what you make, so naturally those that make more pay more, but not a disproportionate amount.

Back to Circuit City..some stores are starting to liquidate already. Good time to catch a deal on outside speakers  

[Renee]

I support the Fair Tax idea, where people pay taxes on what they BUY, not on what they MAKE.  
(Yes...I'm a Huckabee supporter)
Think how much money alone we'd save just shutting down the IRS!
Am I'm sick of the self-employed relative/neighbor that can deduct EVERYTHING they buy, even if it's not used for business, and get away with it.
The tax system we have now is outdated and unfair.
Google "fair tax" to learn more....

[Webini]

Vanguard, I work in the industry.  There is plenty of blame to go around.  The CRA loans were less than 2% of loans that went bad.  The biggest issues were: 1) the deregulation of the financial services industry, and 2) the creation of exempted over-the-counter derivatives.  Both of those were primarily the work of Senator Phil Gramm (R - Texas).

http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html

[Vinny]

Vanguard, I work in the industry.  There is plenty of blame to go around.  The CRA loans were less than 2% of loans that went bad.  The biggest issues were: 1) the deregulation of the financial services industry, and 2) the creation of exempted over-the-counter derivatives.  Both of those were primarily the work of Senator Phil Gramm (R - Texas).

http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html

I don't work in the industry but believe that it stems down to - It is not a right to own a house but a privilege.

The people, whoever they are, that lent money to potential home buyers and didn't verify income or use the 28% rule for affordability of housing are to blame first.

The second tier to blame are the rating agencies who rated a $500,000 mortage by a person making $33,000 as AAA. That was pure B.S.

Third tier was Wall Street trading based on the rating of these derivitives. Of course I don't understand how a CEO who's company loses millions or better yet billions is granted a bonus.

But I guess that it all comes down to we all need to live through really hard times to get back to reality; so our generation, our children's generation and I guess if there are grandchildren old enough to understand what's going on will have a life lesson ... we all can't have the things we want!

[Webini]

The exempted over-the-counter derivatives accounted for most of this behavior.  Everyone in the mortgage industry from the loan officers to the CEOs were incented based on loans closed.  With derivatives all you had to do was to get the loan written - the bank / mortgage company did not care if you could pay since the loan would be sold and packaged with 1,000s of others into a security.  The linkage between the lenders and the loan was gone.

The people I have NO sympathy for are the people that "bought" a house knowing they could not afford it.  How do you think you can pay a $2,000 a month mortgage when you bring home $2,800 per month?

[Renee]

The people I have NO sympathy for are the people that "bought" a house knowing they could not afford it.  How do you think you can pay a $2,000 a month mortgage when you bring home $2,800 per month?

Well, evidentally they did something right, cause now they're gonna get bailed out, and you and I are gonna pay for it!   A gamble that paid off....(note the hint of bitterness in my voice)

[Webini]

Well, evidentally they did something right, cause now they're gonna get bailed out, and you and I are gonna pay for it!   A gamble that paid off....(note the hint of bitterness in my voice)

That is an unfortunate misconception.  They are not getting bailed out.  The only homeowners that are getting help are the ones that have not defaulted yet and can prove that they have the income to pay the reduced monthly payment.  The irony is that in the vast majority of cases the homeowners will end up paying more in the long run due to having their payment stretched out for 40 years.

If you are already late on your payments and can't prove you have the income needed you are going to lose the house.  The media is feeding this hysteria with inaccurate and misleading reporting.

[Renee]

My understanding, and correct me if I'm wrong, is that Obama's plan will get people's loan balance below the value of their houses.  For example, if they bought and financed a $200,00 house, and now it's only worth $150,000, they will get to rewrite the loan for the $150,000 that their house is now worth.    I have found written documentation that states "If it's necessary to reduce principle, then Treasury will provide assistance with this, as well."  That's not fair.  My husband and I did things the right way...saved for a down pymt, financed over 15 years, so the amount we owe is WAY less than the value of the house, even in these depressed times.  What we should have done, is buy more house than we  could afford, finance everything in a crappy mortgage, and then when the value of the house dove, we could let the goverment help us refinance a $200k mortage for a 150k mortgage.  That's quite a return.........  

[Swell-Tub]

Great Idea!
We should all try the same thing!
 
Dear IRS - Actual Letter

February 16, 2009, 2:36 PM

Actual 'Letter to the Editor' from the February 5th edition of the
Wichita Falls ,  Texas Times Record News...


Dear IRS,

I am sorry to inform you that I will not be able to pay taxes owed April 15, but all is not lost.

I have paid these taxes: accounts receivable tax, building permit tax, CDL tax, cigarette tax, corporate income tax, dog license tax, federal income tax, unemployment tax, gasoline tax, hunting license tax, fishing license tax, waterfowl stamp tax, inheritance tax, inventory tax, liquor tax, luxury tax, Medicare tax, city, school and county property tax (up 33 percent last 4 years), real estate tax, social security tax, road usage tax, toll road tax, state and city sales tax, recreational vehicle tax, state franchise tax, state unemployment tax, telephone federal excise tax, telephone federal state and local surcharge tax, telephone minimum usage surcharge tax, telephone state and local tax, utility tax, vehicle license registration tax, capitol gains tax, lease severance tax, oil and gas assessment tax, Colorado property tax, Texas, Colorado, Wyoming, Oklahoma and New Mexico sales tax, and many more that I can't recall but I have run out of space and money.

When you do not receive my check April 15, just know that it is an honest mistake. Please treat me the same way you treated Congressmen Charles Rangle, Chris Dodd, Barney Frank and ex-Congressman Tom Dashelle and, of course, your boss Timothy Geithner. No penalties and no interest.

P.S. I will make at least a partial payment as soon as I get my stimulus check.

Ed Barnett

Wichita Falls

[Bonibelle]

I saw a bumper sticker that you might like too:

[size=16]Honk if I'm paying your mortgage!![/size] 

[SerjicalStrike]

My understanding, and correct me if I'm wrong, is that Obama's plan will get people's loan balance below the value of their houses.  For example, if they bought and financed a $200,00 house, and now it's only worth $150,000, they will get to rewrite the loan for the $150,000 that their house is now worth.    I have found written documentation that states "If it's necessary to reduce principle, then Treasury will provide assistance with this, as well."  That's not fair.  My husband and I did things the right way...saved for a down pymt, financed over 15 years, so the amount we owe is WAY less than the value of the house, even in these depressed times.  What we should have done, is buy more house than we  could afford, finance everything in a crappy mortgage, and then when the value of the house dove, we could let the goverment help us refinance a $200k mortage for a 150k mortgage.  That's quite a return.........  

From the Constitution:

Section 10 - Powers prohibited of States

No State shall ... pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

The power to rewrite contracts is never enumerated to the federal government and is specifically prohibited in the case of states.  If you entered into a contract, the government has no power to force banks to rewrite their mortgage loans.

[Renee]

I saw a bumper sticker that you might like too:

[size=16]Honk if I'm paying your mortgage!![/size] 

That's sad AND funny...all at the same time!