Fall back on your mortgage and the Govt rewards you.......

[GilaMinumBeer]

This whole economic bailout crap frustrates me to no end.

I am reading the newspaper and an article sez that the Fed is requiring (as a condition of another 20bil bailout) CitiGroup to reduce mortgage rates "for those who are behind" to 38% of their monthly income or less.

Those of us who have kept their mortgages in good standing, however, get NOTHING.

BTW, I have 2 mortgages with CitiGroup. And have never made even a late payment. Shame on me huh.

ARRRRRRRRRRRRGH!

 

[jspence1]

welcome to CANADA

John

 

[Laurel]

You should stop paying now! Eventually you'll get ahead!

 

[Kilgore_Trout]

Just to irritate you a bit more Bailout Costs

In doing the research for the "Bailout Nation" book, I needed a way to put the dollar amounts into proper historical perspective.

If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars.

People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.

Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures – combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

 

[GilaMinumBeer]

welcome to CANADA

John

Are the school districts there good? How about bussing to a fro? I'll soon have 2 yungun and that is important ya' know (yeah too late for me on the 2 year mat leave ).

Is FSL (French as Second Language) a requirement?

I hear Vancouver is nice this time of year.

 

[GilaMinumBeer]

Just to irritate you a bit more Bailout Costs

Ohhhhh. That is nothing.

Citi MasterCard, Limit = $25k, Opened in 1995 and has been in excellent standing since.

They just raised my interest rate 9%.

When I called to find out why, the Rep responded (prolly without blinking) with "The Bank needs it as a result of the economy"

Aaaaaaaaargh!

 

[david_42]

I'm one of those suckers who paid off their mortgage early and never carry a balance on my credit card (yes, card). And I bank at the most solvent (highest reserves) bank in the US.

But, I did get to participate in the crash (401K) and the only company that ever contributed to my retirement just pulled all of their matching funds out of the account!

 

[noremorse1]

I'm one of those suckers who paid off their mortgage early and never carry a balance on my credit card (yes, card). And I bank at the most solvent (highest reserves) bank in the US.

But, I did get to participate in the crash (401K) and the only company that ever contributed to my retirement just pulled all of their matching funds out of the account!

I have cards but, I never use them. My wife has a brand new car WE make payments on. I drive a 1998 Jeep Wrangler that has been paid off since 2001. Parts are easy to come by and I can fix almost anything on it myself.

I hate using credit. My money is my money.

 

[farmbrewernw]

Also not a big fan of credit, the only debt I currently have is my student loans and the interest rate is like 3% so I'm not too worried about them.

 

[EdWort]

But, I did get to participate in the crash (401K) and the only company that ever contributed to my retirement just pulled all of their matching funds out of the account!

Can they do that? Aren't you vested?

That sucks big time!

 

[GilaMinumBeer]

Ha.

I just got another letter that they have raised the interest on yet another card. Yes, again to 19%.

Fortunately, I don't have any balances that I can't pay with a single paycheck but, come on this is effing rediculous. This one is the ATT MasterCard, apparently underwritten (?) by Citi.

Geesh.

 

[jspence1]

Are the school districts there good? How about bussing to a fro? I'll soon have 2 yungun and that is important ya' know (yeah too late for me on the 2 year mat leave ).

Is FSL (French as Second Language) a requirement?

I hear Vancouver is nice this time of year.

LOL we only get 1 year of maternity leave. Schools aren't too bad and college won't cost 50k a year. Bring a warm coat.

John

 

[GilaMinumBeer]

LOL we only get 1 year of maternity leave. Schools aren't too bad and college won't cost 50k a year. Bring a warm coat.

John

Yeah but that is 1 year per each parent right? So, by that no Candian child need see daycare until they are 2 years old.


They need any cOdE MoNkEyS up there, Ummmm....Eh?

 

[monty73741]

Yeah I was thinking of refying my home. I have a 6.5% & want to drop it a point. I owe like 73,000 & the values are between 150,000- 170,000. I just found out I would have to carry mortgage insurance & that if i want it removed I would have to pay for two apprasials. WTF. your telling me I dont over spend on a home i cant afford, i have small balances on my CCs, i pay for repairs out of my pockets & i dont get rewarded.

 

[Dr Vorlauf]

I think that this whole bailout is the biggest theft in history. People like Paulson giving money without any accounting ( gee you give someone 25 billion you would at least expect a receipt !).


Biggest theft in history and even more insulting its happening in plain sight and no one cares.

 

[GilaMinumBeer]

Yeah I was thinking of refying my home. I have a 6.5% & want to drop it a point. I owe like 73,000 & the values are between 150,000- 170,000. I just found out I would have to carry mortgage insurance & that if i want it removed I would have to pay for two apprasials. WTF. your telling me I dont over spend on a home i cant afford, i have small balances on my CCs, i pay for repairs out of my pockets & i dont get rewarded.

Ayup.

My buddy tells me he got letters from his CC bank. Not raising his interest but, waiving late fees and overlimit fees for 3 billing cycles.

Because he wasn't able to make the MINIMUM PAYMENT each month.

So, I guess we should all just skip a mortgage payment and car payments. Slow pay the CC's and then we will get rewarded for being such a lame consumer.

Because if God forbid you actually make your payments, the bank will decide it's YOUR burden to carry the dead weight.

My only reall issue with all this is that it makes NO SENSE for me to close either accounts. They are too old and are too clean. Closing them to make a point to CitiGroup would actually do more to reduce my credit rating than it would to send a message to the bank computer.

 

[bmckee56]

This whole economic bailout crap frustrates me to no end.

I am reading the newspaper and an article sez that the Fed is requiring (as a condition of another 20bil bailout) CitiGroup to reduce mortgage rates "for those who are behind" to 38% of their monthly income or less.

Those of us who have kept their mortgages in good standing, however, get NOTHING.

BTW, I have 2 mortgages with CitiGroup. And have never made even a late payment. Shame on me huh.

ARRRRRRRRRRRRGH!

Watch how many Citi customers go behind just to get the reduction. If the banks can get sweet deals, why shouldn't the CITIsins. :cross:

Salute!

 

[McKBrew]

Where the hell is my bailout? Seriously, if the government would pay off some of my debt, I'd be more likely to go stimulate the economy by buying a house, etc... It sure the hell wouldn't cost billions, and you wouldn't be paying me $31/hr to collect unemployment like what auto workers might be getting.

The difference is I know it's my fault that I have the debt I have, and while I've been stupid with money in the past, I acknowledge that it's my responsibility to pay it off. How the heck does corporate America get away with placing the blame on someone else (usually the consumer)?

 

[Dr_Deathweed]

Ayup.

My buddy tells me he got letters from his CC bank. Not raising his interest but, waiving late fees and overlimit fees for 3 billing cycles.

Because he wasn't able to make the MINIMUM PAYMENT each month.

So, I guess we should all just skip a mortgage payment and car payments. Slow pay the CC's and then we will get rewarded for being such a lame consumer.

Because if God forbid you actually make your payments, the bank will decide it's YOUR burden to carry the dead weight.

My only reall issue with all this is that it makes NO SENSE for me to close either accounts. They are too old and are too clean. Closing them to make a point to CitiGroup would actually do more to reduce my credit rating than it would to send a message to the bank computer.

Yep, it is "progressive rates" just like the "progressive tax" that we have for uncle sam. Lesson: Be a leech, its a lot easier. Not only do you get to keep what you make, but you can borrow more, and it is all earned for you. All this responsibility crap will earn you nothing, but those around that arn't responsible will reap all the rewards.

but I guess its fair since the poor cannot help themselves

 

[JVD_X]

Just to clear... the excess mortgage gets tacked onto the back end of the mortgage. So if you had a 30 year mortgage you might be looking at a 35 or 40 year mortgage. In addition, if you sell the home before that time period, the equity majority of the profit goes to the bank.

 

[goodbyebluesky82]

Just to clear... the excess mortgage gets tacked onto the back end of the mortgage. So if you had a 30 year mortgage you might be looking at a 35 or 40 year mortgage. In addition, if you sell the home before that time period, the equity majority of the profit goes to the bank.

Either way, a lot of people are getting a band aid slapped on their hemmoraging financial wound. It won't heal the problem in many cases, and even worse the "band aid" is getting paid for my the average taxpayer regardless of whether they screwed up or not.

The only way for the housing market to rebound is for it to hit rock bottom first. These bailouts, (while yes are keeping people in their homes even if only temporarily) just prolong the market from correcting itself.

It sucks that people are losing their homes, but its not the end of the world. If you still have a job, then go rent and straighten your situation out. Some investor or someone with good enough credit/money will buy up a lot of these homes even though prices will languish. Prices will be low but at least it will stabilize, and then within a couple years the situation will begin returning to normal.

20 years people actually HAD equity in their homes by making a decent downpayment. These days you can get a house for $500 bucks down and get the seller to pay all your closing costs. (I know I did) Problem is, when you make it so da** easy to get into a house, you have all kinds of people getting into houses that have no bsiness buying a house. Add these jacked up hybrid loans and its a recipe for disaster.

 

[jpsloan]

20 years people actually HAD equity in their homes by making a decent downpayment. These days you can get a house for $500 bucks down and get the seller to pay all your closing costs. (I know I did) Problem is, when you make it so da** easy to get into a house, you have all kinds of people getting into houses that have no bsiness buying a house. Add these jacked up hybrid loans and its a recipe for disaster.

Though, in fairness, it was easier back in the day for the average family to save up that 20%.

Per Where People, History and Memories Join Together from The People History Site

1970: Avg. income = $9,400. Avg. Cost new house = $23,450. Ratio = 244%
1980: Avg. income = $19,500 Avg. Cost new house = $68,700. Ratio = 352%
1990: Avg. income = $28,960 Avg. Cost new house = $123,000. Ratio = 425%
here's where it gets odd
2000: Avg. income = $40,343 Avg. Cost new house = $134,150. Ratio = 333%

Still, in talking with my Dad, and adjusting the numbers he experienced when he went through buying the house I grew up in back in 1971, he said that it was easier to save... that the "little s#!t" didn't used to nickle and dime you to death.

 

[homebrewer_99]

I just got a notice they're raising my taxes saying my house appraised at $10K more...I don't see how they figured that???

 

[GilaMinumBeer]

I just got a notice they're raising my taxes saying my house appraised at $10K more...I don't see how they figured that???

Because all the foreclosures around you got liquidated by the banks at $10k less than market value.

 

[CBBaron]

Nice thing about having your credit card through a Credit Union. Just receive a notice that my rate dropped from 8% to 7%.

As for your cost analysis I think it is a little off unless I misunderstand how the bailout is being handled. The "costs" for those other programs on your list were expenses paid with no return expected. The bailout is being handled as loans or investments with the expectation that most of the investment will be returned albeit with a higher risk/reward ratio than is usually expected.

Craig

 

[EvilTOJ]

Because all the foreclosures around you got liquidated by the banks at $10k less than market value.

I still don't get it. If the houses are now worth less, why are the property taxes going up? My mom's property was just assessed as being worth more, and they want her to pay 1100 more a year. For what? She lives out in the middle of freakin nowhere, with like 5 neighbors within a square mile of her.