The latest stimulus package

[Aabidano]

The latest stimulus bid for mortgage refinances seems to be throwing good money after bad, unsure what the point is beyond helping banks recoup their (bad) investment.

Govt help to refinance loans that in many cases shouldn't have been made and wouldn't have been with pre-Clinton rules in place; on properties artificially inflated by the banking industry just seems wrong. It further delays the housing market settling as well since it props up already unrealistic prices keeping lower wage earners out of the market even longer.

Credit should be a two way street. No argument that the lender deserves to be rewarded for loaning the money and that the lendee should be liable to repay it. In cases where the lender made an obvious stupid move they need to suck it up and take the loss as was the case until the early 90s.

When I was 20 I couldn't get a credit card, getting a vehicle loan was tough even with a full time job. The banks really wanted to make sure they weren't going to take the loss. After the legislation changed the whole landscape was different. They gave my daughter a with a huge limit at 18 when she didn't even have a job. Things haven't really changed much either.

Consider the case of issuing yet another credit card to Bubba who makes $45k\yr and already has $45k in credit card debt @ 28% interest + penalties for eternity. Yes Bubba is stupid, no argument. The judicial route to clear the debt is no longer open as far as I know as it's been excluded from bankruptcy law, it always seemed as much a penalty to the bank for being stupid as a "benefit" to the consumer.

[masteen]

Haven't you heard? When you amass a huge quantity of risky investments into one instrument, the risk disappears!

Because the government is forced to bail you out.

[Bubba Grizz]

Consider the case of issuing yet another credit card to Bubba who makes $45k\yr and already has $45k in credit card debt @ 28% interest + penalties for eternity. Yes Bubba is stupid, no argument. The judicial route to clear the debt is no longer open as far as I know as it's been excluded from bankruptcy law, it always seemed as much a penalty to the bank for being stupid as a "benefit" to the consumer.

Damn man, it's like you are living in my house! How do you know me so well?

[Aabidano]

Consider the case of issuing yet another credit card to Bubba who makes $45k\yr and already has $45k in credit card debt @ 28% interest + penalties for eternity. Yes Bubba is stupid, no argument. The judicial route to clear the debt is no longer open as far as I know as it's been excluded from bankruptcy law, it always seemed as much a penalty to the bank for being stupid as a "benefit" to the consumer.

Damn man, it's like you are living in my house! How do you know me so well?

Bubba of the toothless southern variety, not the northern species which while ahead in the dental area always smells vaguely of cheese

[masteen]

There is nothing vague about Wisconsinite cheese-stank.