History dictates that a REO fire sale (the Savings & Loan crisis) is the quickest way to bring the market back to equilibrium. For all you free marketers -- Let's go back to supple and demand rules and allow the marketplace to determine the marketprice. Nothing else makes much sense when all evidence indicates that lenders created an artificial price spike with pressured overvalues appraisals and cheap and easy credit with no standards. Remember the housing market recovery time took 5 years, even after the Resolution Trust Corporation sold off their housing inventory.
tony mizzerof MD8:47AM November 12, 2008
The country got caught up in the get-rich-quick world of home buying and selling, now the taxpayer has to bail them out.
Sorry, let the chips fall where they will. A federal tax lien ought to be filled against any house whose mortgage holder receives assistance from the taxpayer.
As long as we are bailing folks out, we ought to include a bailout for medical bills that people can't pay. But that wouldn't benefit the big Wall Street powers that put and keep politicians in office.
Carl Featherof OH11:48AM October 20, 2008
I was concerned about having more than $100,000 at JP Morgan Chase (or any other bank) and also had some social concern for the liquidity run against Washington Mutual. I moved $85,000 to Washington Mutual (not moved from Chase) for a CD with a maturity that prevented my use of the money for a fixed term and deposited this $85,000 to Washington Mutual just a few hours before the announcement that Washington Mutual was taken over and sold to JP Morgan Chase. Meanwhile, I prudently had just under $100,000 at Chase in a CD with a maturity date that prevents my taking that money without a withdrawal penalty. Now I have $180,000 at Chase (through no fault of my own) in 'two' CD's both having maturity dates that limit my ability to withdraw the funds from both CD's. Suppose Chase were to fail now? Does this mean I lose my deposits over $100,000 even though I carefully opened both CD's with care not to have a deposit over $100,000 in one insured bank?
Paulof CO6:36PM September 28, 2008
Why not give an interest free grant for the top 20% of the mortgage so homeowners can stay in there home. When the home is sold the owners must pay the grant back. In this way the homeowners can keep their home.
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tony mizzer of MD 8:47AM November 12, 2008
Carl Feather of OH 11:48AM October 20, 2008
Paul of CO 6:36PM September 28, 2008
C. of FL 4:59PM May 01, 2008