Ratifying Excesses

Posted on June 11, 2008
Filed Under Uncategorized |

This is why I don’t support any effort to “bail out” homeowners who overpaid for their homes or borrowed more money than they could afford to pay back. Government bailouts as are being thrown around this election year only serve to ratify the excesses of a bubble market.

In markets hit hardest by falling home prices and rising foreclosures, lenders and brokers are discovering a new phenomenon: the “buy and bail,” in which borrowers with good credit buy a new home — often at a much lower price — then bail out of the “upside down” mortgage on their first home.

[From Some Buy a New Home to Bail on the Old - WSJ.com]

More on this topic (What's this?)

Romney Avoids Nevada's Housing Market Problems with a Tactic That Could Work – for Now (Money Morning, 2/3/12)

The End of Wall Street (Finance Documentaries, 12/23/11)

The Chicago Sessions (Finance Documentaries, 12/16/11)

Bear Stearns Report: Relative to Income, Home Prices "About as stretched as [they have] ever been!" (Wall Street Law Blog, 1/27/12)

Read more on 2008 Financial Crisis, U.S. Housing Market at Wikinvest

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My name is Jeff Nolan and I write Venture Chronicles. I am the VP of Product Marketing for Get Satisfaction and I write about a range of topics that interest me, including public policy, technology, entrepreneurship, finance, and global issues.

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