Isn't it ironic that

[kandrathe]

Assuming all this goes through, the govt will be the proud owner of USDA grade crap debt and quantities requiring mining machinery to clear out.

My question is; What is the alternative? Watch the market consume itself, and have worldwide financial meltdown? I don't think the Boards and Shareholders of Lehman, Merrill, AIG, and a host of other financial services companies had any idea that their companies would get flushed down the toilet and their stocks would drop 95% of their value. Fannie and Freddie are another story, where the worst of government oversight meets the worst in corporate executive & shareholder greed. Worse, the same people in Congress who are supposed to regulate and oversee this industry are getting fat checks from them and their lobbyists. Can you say "Conflict of Interest!".

One Third of New Owners Owe More Than House Is Worth. Many of these people will walk away and file bankruptcy rather than continue to throw their money into a hole.

No Money Down Falls Flat

Which of these products do you think makes sense?

1. The "balloon mortgage," in which the borrower pays only interest for 10 years before a big lump-sum payment is due.<>
   
2. The "liar loan," in which the borrower is asked merely to state his annual income, without presenting any documentation.<>
   
3. The "option ARM" loan, in which the borrower can pay less than the agreed-upon interest and principal payment, simply by adding to the outstanding balance of the loan.<>
   
4. The "piggyback loan," in which a combination of a first and second mortgage eliminates the need for any down payment.<>
   
5. The "teaser loan," which qualifies a borrower for a loan based on an artificially low initial interest rate, even though he or she doesn't have sufficient income to make the monthly payments when the interest rate is reset in two years.<>
   
6. The "stretch loan," in which the borrower has to commit more than 50 percent of gross income to make the monthly payments.<>
   
7. All of the above.<>
   [st]If you answered (7), congratulations! Not only do you qualify for a job as a mortgage banker, but you may also have a future as a Wall Street investment banker and a bank regulator.

You can try to pin this on Bush if you like, but the Congressional Banking committee's and the offices doing the oversight need some blame on this. Also culpable are the stupid people and companies that thought "No Income, No Job, or Asset Loans" (NINJA) were a good idea.

Greed overcame common sense and those idiots do need to suffer. But, not at the expense of the rest of us who are trying to earn a living, raise a family, and have a decent life.