WaMu bank fails

[nycmat]

does anyone else see the gloom that is coming with our economy? or is it just me? why would a standing president actually have 2 future rivals sit in on a meeting in regards to our dreaded economy? and niether one can make a decision in regards cause niether one is a president. to make more non-sense politics for the upcoming election. this really isnt a difficult problem to fix. yes some people have to be burned in the proces sad to say.

 

[jackson6745]

People stopped driving when gas hit $5, it won't get to $8 anytime soon IMO

 

[georgelc86]

I love the idea but in reality this only empowers people to purchase $8,000 22" rims for their 1988 Civic, Accord, Sentra, Corolla, toaster oven. Or enable them to purchase vehicles seen in hip-hop videos. Also, why would we give this money to folks in the upper tax brackets anyway, do they really need this. I think the people move would be to give to certain tax brackets but that wont work either. Honestly, if half of the population, that is unfortunatly having their homes forclosed, was prudent with their money we really wouldnt be having this mess or it wouldn't be this huge. They're spinning people their spinning.

Just a spam mail i received which sounds very good.

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage ? housing crisis solved. Repay college loans ? what a great boost to new grads. Put away money for college ? it'll be there. Save in a bank ? create money to loan to entrepreneurs. Buy a new car ? create jobs Invest in the market ? capital drives growth. Pay for your parent's medical insurance ? health care improves. Enable Deadbeat Dads to come clean ? or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG ? liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work. But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .

And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam



Yesterday is gone. Tomorrow has not yet come. We have only today. Let us begin.

 

[jejton]

Its not just greed of banks.. but greed of home buyers who actually went to the bank to get a mortgage.

It would be fair to say the ignorance of many home owners. I doubt many of them were motivated by greed unless you can call wanting to own your own home, believing the real estate agent, mortgage broker and bank along with your government greed. Naivety, ignorance, lack of caution, even irresponsibility, maybe. Greed? No. You cannot equate people being taken advantage of with those taking advantage of them. People should be responsible and do the research before going into home ownership but that is not an excuse for the people who knowlingly lied and ripped others off.

 

[nikkibabee]

http://www.thisamericanlife.org/Radio_Episode.aspx?sched=1242

 

[joseney21]

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

government had a lot to do with it but it wasn't just the government. the market asks for less regulation, but then greed takes over. the market overleverages itself and then the crash...the repeal of the glass steagall act didnt help either (actually this probably caused more **** to hit the fan then anything else), it allowed for investment banking and traditional banking to merge
http://en.wikipedia.org/wiki/Glass-Steagall_Act

 

[joseney21]

Think of the inflation that would cause.

the bailout will also cause inflation. they're injecting 700billion into the economy one way or the other.

and check out this link, it's from a discussion on zillow.com (very informative when it comes to housing and the economy) . this is what one congressman had to say about it. didn't even know this guy until i started reading about housing, now he seems like one of the few people that really know about whats going on and care about the direction this country is headed.

http://www.zillow.com/forum/site/ViewThread.htm?tid=43735

 

[qy7400]

Like George I've been avoiding these threads but since he brought marine ich into this...

IMO the greed of lawyers and mortgage brokers are the root cause, these were supposed to be the people looking after their buyers and advising them on what they were doing, what they should expect and most importantly what they will be paying; I'll give them a little credit if the buyers claimed they understood where they did not. This followed by the banks, who ever thought funding a loan on no credit check or self stated income is a wise idea was... well inexcusable.

 

[georgelc86]

So no one likes the rims I am going to buy with my 295K bailout.

 

[georgelc86]

:lol2:

Like George I've been avoiding these threads but since he brought marine ich into this...

IMO the greed of lawyers and mortgage brokers are the root cause, these were supposed to be the people looking after their buyers and advising them on what they were doing, what they should expect and most importantly what they will be paying; I'll give them a little credit if the buyers claimed they understood where they did not. This followed by the banks, who ever thought funding a loan on no credit check or self stated income is a wise idea was... well inexcusable.

 

[joseney21]

As for the posters that state we should just let the chips fall where they may and things will work out. Unfortunately that hasnt been the case historically. If you study economic disasters ( at least in US history ) over the past 200 years, you will find that those on top usually dont suffer much, and often come out even better afterwards, while a great majority on the bottom suffer greatly since they usually dont have the financial cushion to weather a storm.

I personally wish we didn't have to see the chips fall where they may, but it's the only way to get back to fundamentals, well, that or inflation. if there is enough inflation, along with wage inflation, home prices don't have to drop for homes to start selling again (but you would have to wait for people to save up 20% to put down) ...the difference interfering makes is wether it takes a long time or a short time to correct. the mistakes were already made and now we're seeing the effects, you can't correct the mistakes, you have to acknowledge the loss.



i have a family,two daughters and a loving wife, for whom i would like to buy a house at an affordable price. the more the govt intervenes the longer it'll take for things to correct (this is a correction, you can't stop a correction from happening) and the longer it'll take for families like mine to buy a home.

 

[joseney21]

i have some more to post, but already it's too much. i'll post the rest later, i apologize in advance, lol.

 

[joseney21]

check out this video

http://www.youtube.com/watch?v=Bjpor8iBe58&feature=related

 

[cali_reef]

People with bad math skills are dragging the economy down :lol2:

$85,000,000,000 / 200,000,000 = $425 not $425,000

 

[DallasNYC]

Some quick math.. 85 Billion divided by 200 Million = $425.00.

 

[georgelc86]

Ok real quick, I have the perfect idea. All MR members should pool all of our money together and start our own bank. Then tank the bank. Check this out.

http://biz.yahoo.com/ap/080926/wamu_ceo_pay.html?.&.pf=banking-budgeting

 

[georgelc86]

Some quick math.. 85 Billion divided by 200 Million = $425.00.

Great! There go my rims.

 

[joseney21]

they say they don't know the market value of these assets, i don't have a college degree but i have an idea. there has to be an equation where you take the average income for an area, take 29% of that and multiply it by 360, using data from the past come up with an interest percentage that'll cover losses (in general a certain % of people who put 20% down and have good financial responsibility will still default) while providing profits, subtract all interest paid for the loan from the 29%X360 (80% loan to value max) and that should be your selling price. it's the way it had worked up until this mess (sort of like that).

the banks can't do that because they would have to acknowledge the loss they acquired by giving money away to people who weren't going to pay the loans back. that money is gone (for the hummer, nice summer vacations, jewelry, plasma you name it), you can't get that money back. now they want the taxpayer to take the hit for the loss, without that theyre insolvent.


houses, the root cause of this problem according to sec paulson, will drop in value regardless of which way this goes, whether by dropping in price or by dropping in value due to inflation. americans will lose what they have in 401k plans that have anything to do with this mess for the same reasons. if we go the inflation way americans who were responsible and have money in banks will watch their money slowly diminish in value. remember Hank Paulson was the previous CEO of goldman sachs during the good years when all the mistakes were being made '99-'06, now he wants a 700billion dollar check from congress with no oversight, no review, and he'll be bailing out the company he worked for when the mistakes were made (among many many others). he states he wants all the money now, but will only use ~50billion each month.

BTW he leaves office on January 20th, we all know bush is soon to be gone. seems pretty fishy to me....

 

[georgelc86]

joseny, your feeling it right now huh?

 

[Chiefmcfuz]

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