Sub-prime Bail Out

[Kitsune]

Originally Posted by glatt

But what happens to the economy on the whole and to my job specifically if all these people go broke?

Let them go broke. We absolutely need a total reset in this market and have for years, now. The longer we keep this crap afloat, the farther we'll have to fall in the end.

[lookout123]

what exactly do you see as a "total reset" and what are the benefits/consequences?

[Kitsune]

Originally Posted by lookout123

what exactly do you see as a "total reset" and what are the benefits/consequences?

Sane loans and prices that aren't artificially inflated to astronomically high prices by easy/free money. A normal growth in real estate and calm reactions on behalf of all parties -- lenders, buyers, and sellers. No more "free money" mania if enough investors learn their lesson.

If the government bails loans out, we'll see this problem extended and the inevitable could possibly be more damaging. We have years of ARM resets remaining before this is all over and done with, so any bailout that happens now is a drop in the bucket of a much larger problem, anyways. Besides, banks aren't going to take the fall and lawmakers will see to that.

Consequences include lots of burned out vehicles. Strange.