The subprime mortage problem is not one of the main resons for our economic problems. They are actually a very small percentage of Mortages as a whole. I agree that predatory lenders should be delt with, but lets not forget that those who got these loans should have known they were getting in over there heads and should have better sense.

The Government can't be expected to be an insurance for stupidity, for lack of a better word. We can't bail out evryone who makes a stupid decision.

Fly, I think you've forgotten about the economic crisis in the 80's. Do you remember when interest rates were 13% or higher to buy a home? We were in a recession then for sure. Economics ebs and flows... unfortunately. That is why taking a loan that is not fixed is not smart. Eventually, it will change. The consequences of bad decisions usually do take years to culminate. Both Democrats and Republicans have made poor decisions over the years that have eventually caught up with us. They tend to make decisions based on the short term fix and not the long term. On another note, yes, people should know what they can afford and what is too much risk. At the same time (and I mean this as NO excuse) we have a society that media and other entities have molded into a "lean on me" and "tell me what is truth" mindset. People believe what they are told without any personal investigation, and they don't know what they can afford. Sad, but true. Maybe the media can begin to "educate" people on that.

Bullochguy and Susan, Read what Fox news has to say about the repercussions of the subprime debacle.Many financial pundits are reporting international repercussions.It's big--- it's really big ,and we need to do something about it.

What if I quoted the Pundits, at least the credible ones, on some of you Liberal beliefs. I try and not do that, and just stick with facts. The pundits make a view that supports there beliefs.

Subprime Mortgages are a problem, they are just not as big of a problem as they are made to be, and as I stated the Federal Government is not ment to be stupidity insurance! Are we supposed to bail out everyone who makes a bad decision?

Hi,

No matter how dark things seem right now, it cannot even come close as to the Great Depression of the 1930's.

Being a mid-40ish man, I know nothing of that period except from what my grandfather told me.

But I know that people kept their faith in things would only get better...and they did.

Since the stock market crash of 1929, the American economy has grown each and every year. Sure there have been some short term setbacks...but the American people have endured and prospered.

Let's not forget that.

Let's also not forget that it is Government who continues to mess with our market economy...and they destroy it in the process. Get the government out of the economy business and every one will prosper.

Let the Dems raise the Cap gains the way it has been talked about and we will see just how bad it can get!

tempus edax rerums

Fly, the concept that my tax dollars should bail out the very people that drive past me at twice the speed limit in their BMW, Benz, Cadi, and sneer down their nose as they head towards their $350,000, to $500,000 home they can't afford with interest only, or ARM payments lower than my less than $200,000 home I have no sympathy that their payments are now going up to whear they should have been with a conventional 100% loan.
They should have read the fine print, and not dreaming of the color of their new cars. I have seen this not only here in Georgia,but all over the country. It is one thing for the Government to help the poor, and the disabled, but in no way should they bail out the self centered,and stupid!

My, my...do I sense a note of bitterness here?
While I agree that these tax dollars should not be used to "bail out" more affluent individuals, I also do not think that it is fair to become combative (perhaps jealous) toward those who have done well for themselves. Doctors, attorneys, enterpreneurs and the like who have worked hard to put themselves through school and dedicated their lives to being productive members of our society have earned their BMW and their mansion in the country, as far as I'm concerned.
Let's talk about some of the poor that need to be "bailed out," and why it is that they cannot help themselves as others in their position have done. Nothing frosts me more than to drive through the poorer sections of Statesboro (or any other areas of the country, frankly,) and see able-bodied folks sitting out on their dilapidated porches with their seventeen cats, three broken-down vehicles and miscellaneous other garbage in the yard as they sip 40 oz. beers at 1 p.m. on a Monday afternoon. My contention is, get off of your duff, clean up your yard (I'm sorry, but poor does not equal dirty) and take a walk over to the unemployment office on Savannah Avenue. Because you'd better believe, if you can pick up a welfare check, you can pick up a job.
As far as disability is concerned...Being disabled does not excuse you from being a productive member of society. In fact, the vast majority of disabled people I know are VERY able to work, volunteer in the community, and lead active and productive lives. These same people get quite offended when others suggest otherwise.
Just a few thoughts.

Jesus instructed us to take care of the Orphans and widows. I have no problem with that. I am with Nick on the people recieving Welfare. If anything needs reform in this country it is Welfare and Disability, but were about to have a Government run by those who want to take money from those who will work and give it to those who will not.

First of all, welfare recipients are not homeowners ,and citizens partaking of forty ounces of al fresco suds would have liquidity problems of an entirely different sort.On the other hand,people swept up by the subprime disaster have been gainfully employed and overwhelmingly middle class.My guess is that they would not be driving BMW's at any speed or using the proceeds of their loans to buy Black Acre.If they live in Southern California of even Las Vegas, the 300,000 to 400,000 house they purchased aint much.Yes, they were dumb ,but we seem to have an overabundance of dumbness right now with over two million homewners at risk.More are expected to default as the crisis unfolds.

I don't want to see anyone homeless ,and I am also concerned about collateral damage---- all those responsible,hard-working Americans, innocent bystanders who could be affected even though they did everything right.

I am concerned because the whole scenario seems reminescent of the stock market crash of 1929 caused by overleveraged small -time investors buying stock on the margin who hoped that stock prices would continue to escalate and were unable to make good on their purchases when the value of the stock dropped.

Our concern should be with overall health of the economy and not with fruitless exercises in moral condemnation and finger wagging.

My only concern is the same one I have with all of the Liberal social programs. Where do we stop and where is the line drawn? What do you want the Government to do? Pay everyones house off? Pay half of the payment? Does it go on the persons credit? If not will they pay for mine? LOL!

Actually some of the lenders ,who caused the problem in the first place, should be expected to pay something toward the solution.Perhaps they should be required to contribute to a superfund to allow some debtors to work their way back to financial solvency.A freeze on mortgage rates would cost the taxpayers nothing.Properties should not be allowed to sit vacant for any length of time.Surely, we could devise a plan to allow qualified buyers to purchase the properties.

Here's another thought:

One reason that gas prices are so high is that the value of the dollar has declined.One reason the dollar has declined is that we have come to depend on foreign investment.At present some foreign investors are leery of investing in the US.If we can demonstrate that someone is minding the store and that we can put our financial house in order,some of these investors will once again invest in the US.

You may cast it as a social program if you like ( all social programs are not boondogles) ,but I think you will agree that something more than hand wringing,wishful thinking,name calling, the endless recitation of conservative verities and bon mots and liberal baiting needs to be done.While I'm at it ,I would like to add that I think there is something wrong when we can invest in Big Oil and cannot find it in ourselves to invest in people.You will note that I said invest--- something far different that a handout.

Frankly,as far as I'm concerned,the Republican cupboard looks rather bare right now.But it's a free country ,and that why we have elections.BOL! ( Buzz out loud)

The Muscanator

Still doesn't answer many of the questions about such help. I have no problems with freezing interest rates. I do have a problem with just bailing everyone who says they need help out. I am also concerned about where money will come from since we will no doubt have a growth of unnecissary social programs under Obama.

Anyone see today's headlines in the Herald: "Fannie and Freddie lifeline puts taxpayers on the hook"?

The paper reports that Fannie and Freddie accounted for 47.9% of mortgages in the 1st quarter. The article goes on to say that "losses already exceed $400 billion, and some analysts believe they will top $1 trillion before the housing carnage is over."

Then it says... "The Bush administration and the Federal Reserve announced an emergency rescue plan Sunday to bolster Fannie Mae and Freddie Mac, which hold or guarantee more than $5 trillion in mortgages — almost half of the nation’s total."

I agree with Fly. This is really big.