Housing Bailout

TOL, PHM, BZH

This one really irks me. Are these guys serious? They act like their companies are on the verge of collapse. That couldn't be further from the truth. The nature of this business is cyclical.

Haven't they learned this yet??? And if they can't make it through 1 recession then they shouldn't be around.

This is the last sector of companies that needs to be bailed out from a financial standpoint.

Well the thing is that there is a lot more going on here then just a recession.

Too many bad loans were made and now those banks and companies are paying the price for their bad decisions. The other problem is the fact that it wasn't completely their fault either.

The U.S government actually pressured them to give more loans so that more people could have houses, even though they really couldn't afford them

So it's more like a combination of those two that is causing this huge problem. There might even be more stuff going on that I am not aware of also.

Of course, any goverment encourages lending.
More houses = sales of white goods = more tax to pay
Utilities = more taxt to pay
More in work = more tax to pay

Borrow more so corpotations say afloat so govement get corporation taxxx and employee tax pluss other tax's from the working people.

This time there simply no more money to go round result financial melt down

That is all true but there is a limit to that. You shouldn't be giving loans to people who cannot afford a house.

I am all for people who can actually afford a house to get a loan for one.

Yet again, the responsible are being required to bail out the irresponsible.

It's just delaying the inevitable. If they have savings they won't get the benefit - therefore it's only available to people living just within their means now. If they then lose their job, get this benefit for a while and get another job later - it'll be for less pay and if they couldn't afford to save before how are they going to afford the mortgage with backdated interest on the lesser salary?

Stupid idea. It will just prolong the agony.

Hoggums said:

It's just delaying the inevitable. If they have savings they won't get the benefit - therefore it's only available to people living just within their means now. If they then lose their job, get this benefit for a while and get another job later - it'll be for less pay and if they couldn't afford to save before how are they going to afford the mortgage with backdated interest on the lesser salary?

Stupid idea. It will just prolong the agony.

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Agree. But even without this headline-grabbing scheme they would have to be re-housed / accommodated somewhere at local authority (ie you & me) expense.

I feel sorry for those who were prudent, couldn't sensibly afford a mortgage / property and made other arrangements. They now have to help support the feckless / stupid / ignorant / incapable of managing their affairs / greedy etc etc. 'twas ever thus.