Comments about ‘Letter: Housing help for families is now on the horizon’

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Published: Saturday, Oct. 20 2012 12:00 a.m. MDT

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higv
Dietrich, ID

People that own the housing markets are individuals too. A company is a persons company. Any government help is help taking money from someone else.

lost in DC
West Jordan, UT

Lois,
most blue states that have taken this money from the feds have spent most of it not to help homeowners, but to plug their own budget gaps.

fault lies with barney frank and bill clinton who forced fannie and freddie to eliminate lending standards so all who wanted to could by a house whether they could afford it or not.

It was exacerbated by irresponsible homeowners who defaulted on their mortgages when they were underwater even if they could afford the payments, further distressing the markets.

Yeah, large financial institutions were distressed because the exotic financial instruments they bought went bad, but the majority of those instruments had residential mortgages as their underlying collateral. If slick and barney had not forced the elimination of credit standards for residential mortgages, the exotic instruments, derivatives, credit default swaps, etc, would not have turned toxic and no bailout would have been needed.

barney and lslick were the catalysts causing the housing market to tank and taking our economy with it.

Also, SIGTARP reports that the bailout of the banks MADE money for the treasury, but the housing bailout will COST the treasury money.

Eric Samuelsen
Provo, UT

Lost in DC
Actually, none of that true. Fannie and Freddy were only a small and insignificant part of the problem. I know it's annoying when pesky facts get in the way of ideology, but this was almost entirely a private sector meltdown.

lost in DC
West Jordan, UT

Eric,
Actually, ALL of it is true. From the usual sophistry of your comments, I take it you are well educated and fairly intelligent. I am surprised you let ideology get in the way of the pesky facts.

Let me connect the dots.

The financial markets froze and some private companies failed because they had significant investments in financial instruments, derivatives, credit default swaps, etc. backed by residential morgages. These assets were toxic because their underlying collateral was worthless.

Why were they worthless? barney and slick forced fannie and freddie to abandon credit standards for the loans they purchased. Other players in the secondary mortgage market had to follow if they wanted to continue as market participants. Thus we had liar loans, NINJA loans, etc. which created a bubble and loans were made for more than the housing was worth. The housing bubble hid the toxicity of the assets; when F&F stopped buying junk mortgages, the bubble burst, the toxicity was exposed, and the financial markets collapsed. Had barney and slick not forced F&F to abandon prudent lending standards. NONE of this would have happened.

bad governmental inputs collapsed the private markets.

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