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Why is government trying to help out greedy homeowners facing foreclosure?

Why is government trying to bail out fannie & freddie & the greedy home owners who are facing foreclosure? I lived & owned my home for past 10 years without greed & safe while all my acquaintances refinanced to do their 50k renovation, purchase a luxury cars & buy their 2nd & 3rd homes who are also facing foreclosures right now. Screw them. They are the ones who got into the mess in the first place. Let them dig themselves out of it.

Public Comments

1. They are not bailing out the Americans who are losing their homes, they are bailing out the company and the investors.
2. I think the only reason is because the "Big companies" (the banks and the mortgage lenders) are really shitting their pants because they were dumb enough to give these people the loans that they now are not able to pay, once the interest has kicked in. These companies are the ones the Uncle Sam is doing this for - but I still think it their own fault. But the effect on an already depressing economy is enough motivation. OUR bank on the other hand never even offered anything but a fixed interest rate - Praise the Lord! You know - I am sad to say, that a family in my state got one of those homes from Extreme Makeover. They got the home FOR FREE, then took out a $450,000 equity loan on the thing - couldn't make payments and started to lose the house. They got spotted $100,000 by a company who heard and felt bad for them - still. losing. the house
3. because it's election time
4. Our government is bailing out rich companies that knew people could not pay their loans. Put the responsibility on the mortgage companies. It's their specialty and they know better. They brought it on themselves when our government changed laws and gave them free reign.
5. I agree, the goverment should investigate who they are helping before they help. I understand there are people who need the help, but most dont. If your driving a BMW, and a home entertainment center worth more then your house, get the hell out. But if your struggeling to stupport your family and your house, then its okay to ask for help. Just as long your helping your self too.
6. Fannie Mae & Freddie Mac are political money laundering programs, setup to look like mortgage lending entities. Just look at the last 6 CEO's fired for accounting scandals. The government is bailing them out to ensure their liquidity and to make sure their corrupt dealings never get exposed.
7. Well you can't see it in absolutes. Some people are facing foreclosure due to job loss and hardship. But then there are those whom got "liars loans" and foolishly cashed out thier equity in the overinflated market and now have a mortgage bigger than their houses value. To the average joe falling on hard times they have my sypathy and support. To the liars and the fools I don't.
8. I know how you feel as many just used their home as a ATM but ...I don't know how they well help some and not others
9. Because it will help the economy as a whole. You don't seem to realize many of these people are NOT the people you are talking about. Many of these people are the victims who have lost their JOBS because of the housing crisis and now have to foreclose. You NEED to do A LOT of research before asking a question like this.
10. Because Bush is such a "compassionate conservative" he can't stand to see people strugling, so he is willing to make the entire country responsible for the debts incurred by the multi-millionaires who run those organizations. We shoud all share the pain. It's socialism in reverse! That's Bush!
11. Because there are strong forces in place to resist more federal regulation over mortgage lending and mortgage securities. The real reason for this mess is securitization of these loans. In the old days the bank would loan you the money to buy your home and you would pay the bank- that same bank- back. Therefore the bank was very careful who they loaned to, because they wanted to keep the default rate low. Once banks and mortgage lenders started selling off their loans on the secondary market, they have no more stake in those loans. So the primary lenders made their money on the closing costs. points and commissions and pass the liability to the secondary lenders. These secondary lenders then securitize their loans with wall street, so you have mortgage backed investments and that is where the money is coming from. When these loans go bad, guess what, anyone who has a 401K or mutual funds with "mortgage backed investments" is losing money. So the loss of all these defaults gets spread out over millions of investors. The best solution to this mess is to not allow loans to be sold or securitzed. The real estate market and mortgage lending needs to be regulated. Otherwise, you basically have a bunch of shyster day traders who only care about their commissions and not whether the loans are good or not. If banks held those loans, you could be damn sure that they would not make too many bad loans! Otherwise there would be many failed banks. Dont forget this happened once before with the S&L bailout. People should go to jail over this mess!!
12. If the government does not bail out Fannie and Freddie mac our entire economy could fail, and it would certainly hurt the economies of some of our allies, namely the UK, which is hurting now because of all the investing in sub-prime mortgages. It sucks I mean I can't even dream of owning a house, and yet I have to pay taxes so people who shouldn't have owned one in the first place don't lose theirs and lowers the chances that I will ever be able to own a house. However, that's a part of living in a civilization. Sometimes you have to help each other out, otherwise there would be no point in having a society.
13. I wouldn't worry about the greedy homeowners. They won't be getting any help, and many of them will end up losing their homes to foreclosure. Most of them won't be able to dig themselves out of the hole they are in, since they will be forced to pay for their own hole digging, as well as helping dig banks out of holes. The greedy Wall Street investment bankers, though, will be getting bailouts from the government. Oh, and they will also be able to keep their numerous homes. But at least these greedy bankers will be able to rely on greedy (and non-greedy) homeowners to help them dig their way out of the messes they are in. Banks -- financial power and campaign contributions, too big to fail. Homeowners -- worthless votes in a rigged system, too unimportant not to fail. Good luck. ForeclosureFish