Bailout please.

Dear powers that be,

My investments aren’t working out the way that I hoped they would and now I’m in a bit of a tight spot financially. I’ve got to tell you this has shaken my confidence in the system a bit, but if you could provide me with a bailout I could get back on my feet. I have a foolproof plan to get caught up on my bills, I’m going to buy a bunch of playstation 3’s and sell them on ebay next Christmas. After all, everyone wants a playstation 3 and I hear they’re a rock solid investment.

Sincerely,
America

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satv
satv
13 years ago

I think what itulip is getting at is that his (and others) posts are usually well thought out with actual evidence to support his thinking.tony danza,he has wasted 3 year talking about usa market.this is vancouvercondo.info and we live in vancouver there are evidence every month to support,and I am sure you will find more evidence on friday free for all by the pope.if he don't then I will generate something.

Jason
Jason
13 years ago

From the New Yorker:"But there is something unseemly about watching the avatars of free-market capitalism rely on the government to pay for their bad bets. And there is something scary about contemplating the even bigger bets they’ll make in the future if they know that the Fed is there to bail them out."I couldn't have said it better mnyself.

Tony Danza
Tony Danza
13 years ago

satv said… if you like to hit hard be prepared to get hard hit,got it.Wow satv have you been watching too many mob movies or what? I think what itulip is getting at is that his (and others) posts are usually well thought out with actual evidence to support his thinking. Your posts are absolutely useless real estate cheerleading, so unless you can provide us with some substance shut the f*ck up please.

satv
satv
13 years ago

tulip,if you like to hit hard be prepared to get hard hit,got it.

satv
satv
13 years ago

blueskies,freako is a big brother respect!respect!respect.

tulip-Mania2
tulip-Mania2
13 years ago

SAT: YOU STUPID F–K PLEASE DON'T RESPOND TO MY POSTS.

blueskies
blueskies
13 years ago

see i have found you. sigh!…. it's gonna be a long night

satv
satv
13 years ago

freako,see i have found you.

freako
freako
13 years ago

satv, lay off the fortune cookies.

patriotz
patriotz
13 years ago

Do you folks truly believe that major central banks (basically controlled by the richest of the rich) are going to allow the market to collapse over $100Bil worth of bad loans?Yes.Look, when the price of capital assets gets way out of whack with earnings, prices have to fall. That's called a "bear market" and it happens to every asset class. Governments and central banks cannot keep house prices out of whack with rents any more than they could have held up the price of dot-com stocks.And I'll tell you another thing – IMHO the "richest of the rich" have been smart enough to see this debacle coming (e.g. Warren Buffett, Mozillo, etc) and have gotten out of the way. But a lot of cowboys are going to see their Little Big Horn.

satv
satv
13 years ago

How ironic, mortgage does mean until death.tulip,MORTGAGE:means a home that is most important place in the world.A HOME:is a heaven created by your dreams where your children will take a shelter forever,or replace with same value some where else.BAILOUT:procedure is located in the "soul agreement"people can sign only if they can keep up with that.think,think,and think also take lots of advice.why to represent false information.bank manager not going to pay your mortgage.best friend in this world is you to your self,me to my self.OTHER CASE:mr.dick and water can find their way some how.

Patiently Waiting
Patiently Waiting
13 years ago

bogdan,I think the prices have already peaked in June, then we will see a significant slowdown in the Fall, then yoy price drops in the Winter with early signs of panic as things unfold internationally, and finally a silent Spring. By late Spring 2008, the bubble's burst will be obvious, although some keen observers will notice that it really happened in Dec 2007 (sales almost non-existent at that point). The reason why it will obvious in late Spring 2008 is the huge international recession at the point combined with massive price slashing at new condo developments (and rumours of local developers going out of business).

tulip-Mania2
tulip-Mania2
13 years ago

The plan by the banks in Canada, should there be a big increase in mortgage rates, is to increase the payment only up to a manageable amount. The shortfall will be added to the principle. So it is likely the existing home debtors can hang on if they want to badly enough, although they will be making payments until their dying day. How ironic, mortgage does mean until death.Locally, we have certain cultures that would rather die than to face the humiliation of foreclosure, and if they have to take three jobs to keep the mortgage, they will.That however, will not keep prices from collapsing.

blueskies
blueskies
13 years ago

Can someone please make a prediction on WHEN the bubble will burst in Vancouver… over on the Chipman index i picked Tuesday PM ish….. I was wrong my next prediction is Thursday after lunch……

bogdan
bogdan
13 years ago

Can someone please make a prediction on WHEN the bubble will burst in Vancouver…Just for your information, according to BC Stats, average wage in BC is $18.60 per hour, where Ontario is enjoying $19.79. Any Predictions? 2008? 2010?

si fu
si fu
13 years ago

What's in it for the banks? Cashflow. If there was a decent pool of potential buyer/occupiers then the model wouldn't work too well, but if there were either no buyers, or only buyer/investors, then it might be a short-term solution. At least there wouldn't be a massive bailout. The banks and other species of mortgage lenders in the US need to come up with some creative solutions or they (along with the fools who bought lower tranche CDO's) are going to take a huge hit.

OWG
OWG
13 years ago

Well I might have believed you if the banks hadn't proven the exact opposite last week when everything started to look frightening. Instead of relaxing their loan policy as you suggest they tightened it further, to the point where commentators were suggesting that the pull-back in stock prices had more to do with the banks' reaction to the situation than the situation it's self. Sometimes I wonder whether all this was just a show to esnure that the fed will cut the interest rates in the future. As soon as the talk about big R started there was a bailout…

markx
markx
13 years ago

For a reference, the Iraq war and war on Afghanstan has cost the US government 500 billion and some change. Now compare to the trillion dollar mortgage mess. Do you think any politician will make a serious attempt at bailing out the housing market? There are better ways to buy votes or line the pockets of their backers with a couple trillion dollars.On the CMHC bailout issue, CMHC is explicitly backed by taxpayers, while GSEs in US are implicitly backed by taxpayers. There has been some jitters about MBS backed by Fannie Mae. Just some notes on ask/bid spread. The HBB has mentioned that the GSE's are not in good accounting shape either. We may need to see how the taxpayer guarantee play out.

freako
freako
13 years ago

describing how the banks could simply turn borrowers into long-term renters as a solution to the subprime mess.What's in it for the banks? If these people can't afford the payments, why would they be satisfied with lower rents. And who is going to manage the massive logistics of banks being in the landlord business. And what about the risk of having the places thrashed? They didn't exactly get to pick their tenants on the usual criteria.

blueskies
blueskies
13 years ago

the option to remain in their house as a renter paying the fair market rent. some of these buyers can't even afford market rents….this would also cause a problem in the mortgage markets as investors would not get the return they signed on for. even now investors are opting for safety over yield, not a good sign for borrowers needing a mortgage

freako
freako
13 years ago

If the US Government does something as stupid as bailout foreclosed homeowners then the US dollar will plummet and inflation will rage out of control. Being an election year next year, I am sure that we will se plenty of lip service from hopeful candidates. Particularly those pandering to the middle class. Any body heard Lou Dobb's opinion on this?I think it more about scoring political points than a serious proposal. It would be a very bad idea.I can see some half measures, such as allowing Fannie Mae to guarantee riskier loans, much as our own CMHC does.

si fu
si fu
13 years ago

I saw an interesting article from Dean Baker describing how the banks could simply turn borrowers into long-term renters as a solution to the subprime mess. One caveat is that unlike here, the US banks have to choose to seize OR sue. Here is a sample of the article, with the link to the full story below: Here’s how the plan works. Currently, if a homeowner is not able to make their mortgage payments, the holder of the mortgage can go to court to place the house in foreclosure. At that point, if the homeowner is not able to come up with back payments on the mortgage, or work out an acceptable arrangement with the mortgage holder, the bank or financial institution that holds the mortgage retakes ownership of the house and can have the homeowner evicted.Under this security of… Read more »

Drachen
Drachen
13 years ago

owgWell I might have believed you if the banks hadn't proven the exact opposite last week when everything started to look frightening. Instead of relaxing their loan policy as you suggest they tightened it further, to the point where commentators were suggesting that the pull-back in stock prices had more to do with the banks' reaction to the situation than the situation it's self.

Clarke
Clarke
13 years ago

The "beauty" of the system is when large financial institutions do well, they get profits. If they do something stupid, taxpayers pay for it.

OWG
OWG
13 years ago

Do you folks truly believe that major central banks (basically controlled by the richest of the rich) are going to allow the market to collapse over $100Bil worth of bad loans? Of course that they are going to bail them out. That's why they exist – not to protect you and me, but those with many more zeros in their bank accounts. This entire system is based on blind greed. And greed is being rewarded.