Is the pending economic stimulus legislation an attempt to nationalize the home mortgage industry?

chris h asked:


Seem like raising the caps on federally insurable mortgages and having the various gov’t underwriting agencies purchase unvetted portfolios of mortgages effectively nationalizes the home mortage industry. SInce I am reading that there may be $2 trillion of bad loans out there, I suspect that means we as taxpayers will then be on the hook for that much in bad loans. Why do I think we are seeing another Savings and Loan Scandal? I sure hope I am wrong.

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3 Responses to “Is the pending economic stimulus legislation an attempt to nationalize the home mortgage industry?”

1. econgal Says:
   August 22nd, 2008 at 8:54 am

   It’s a bail out not nationalization. These loans will be supported by the private sector again when the market recovers. All attempts by the government to bail out this crisis will eventually come as a cost to tax payers. The folks who save, work hard, and make sound decisions will have to subsidies the poor decisions of greedy lenders and overextended home buyers. Come on, you make $45 k but bought into a $250,000 home…WTF!

2. Lantern Bearer Says:
   August 25th, 2008 at 5:27 am

   Here is how I see this. The mortgage industry knew exactly what they were doing. A great deal of my business was based on the field end of that business, originations to closing. (Business machines.) There was nothing coming down above to say, “Make good loans, do clean business.” The mantra was, “Don’t worry about the payment or the balloon. Just sell when you’re ready.”

   It is then possible to conclude that those driving this from above were depending on the “Marvin” factor. (Marvin Bush, the Presidents creatively criminal brother from the S&L days)

   The actors in this production,that I know, all had the requisite W on the bumpers of their Hummers and Denalis. They possessed the conservative imprimatur to express their ideation as holy.

   Shouldn’t real conservatives have seen that this as a serious racket. What would we call a scheme that results in the enrichment of a few at the cost of the many. from the tax payers account. This will be nationalized for someone. It is a function of national socialism.

3. Economist (trying) Says:
   August 28th, 2008 at 8:13 am

   This is an interesting topic. First of all, I am not american so I will just give my unbiased opinion. I follow the situation in the USA primarily because our country’s number 1 trading partner is USA. So whatever happens to USA we will be greatly affected.

   The mortgage problem of USA became a problem when some wise guy thought of a risky deal which is lending it to people who are “high risk ” thus came about the term “sub-prime”. Lending to these people means higher profit but higher risk, they saw the bottom figures and it was rosy. Many lenders banking institution, mortgage lenders, quasi banking, all jumped in and took a share in this very big gold mine. Greed took over, they became more courageous in lending to the “sub-prime” account and increased their earmarked money for investment in this gold mine. Then came the bubble bursting chapter. Now it’s affecting the whole economy due to it’s magnitude, a chain reaction if you may.

   Now an economic stimulus is being pushed. a tax rebate. Question is how long will this be of help to the americans? 1200 dollar rebate will only stimulate an ailing economy for a month , tops of 3 months then what? People will start dipping in to their credit cards again, next on hte line after the mortgage problem is credit card past due problems.

   This stimulus package is an attempt to delay the inevitable — welcome recession. This package will increase the deficit and it will burden the citizens more. The next administration will have to find ways to balance the budget by increasing tax revenues, unless either Obama or Hillary makes budget cuts on war funding, and it is very important to pull out of Iraq as this is draining the coffers of your gov’t.

   so to sum it up and address your question directly, in my opinion, it’s not to nationalize mortgageindustry. It is a desperate attempt by Bush to avert a recession in the wrong way. is this a scandal? No it isn’t.

   I for one hope that USa gets out of this the soonest or otherwise we are gonna have job cuts here as well.

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