Couldn't it also be argued, that bailing out these "greedy" people and banks, only continues the cycle of greed and stupidity? Stupid and greedy are the only groups identified as needing help with mortgages. If you were too "stupid" to realize you were buying a house you couldn't afford 5yrs ago with an ARM, you shouldn't be allowed to keep your house now. Too bad, move back into an apartment until your situation improves.
Quote:
|
Like everything else in real estate, a lot depends on your location.... The only region of the country that saw an increase was the Midwest, where sales jumped by 30.8 percent.
|
Doesn't that quote basically illustrate that everything is overpriced? What about the "smart" people who chose not to take the risk? Why allow the stupid and greedy to keep their homes?
Quote:
|
With fewer new households in the market for a home, it will take that much longer to sell off the backlog of unsold houses.
|
Again, isn't this affirmation there are few buyers, because the market is overpriced?
Quote:
|
If demand from investors for new securities weakens, that could make less money available for new mortgages, further weakening demand for homes.
|
So if Company A is not buying loans (securities) from Company B, Company B will not have as much to lend to the new buyers? Ok, that makes sense. But how does that equasion "weaken demand for homes"? In fact, as a bank, if you had less money to lend out, then you'd be less willing to risk it on sub-prime borrowers.
So, less money to lend out, seems to automatically take care of greedy lenders, and stupid borrowers. I've come full circle, stupid and greedy should not be bailed out.