Automakers have not done anything to stem the trouble from happening. If they only started 5 years ago I’d have more sympathy. But they had a ton of money invested in the 1990s to help them research fuel efficient cars, thus Toyota dumped money to create the Prius. What did the Big 3 do with the technology? Nothing. They made bigger SUVs?/Cars.

Second, in the 1980s there was a massive overhaul of many private companies doing away with pensions because of 401k creation. They did not discuss with the unions and explain why it was not a sustainable system. In the 1990s when the Big 3 got the bailout they still DID not reform the pensions and unions. They did not consider what would happen when oil became more expensive.

Homeowners and banks are not exactly the same. We all agree that the majority of people and areas are not in the position of foreclosures. It is more localized and narrow. I doubt places like missouri, wisconsin, Iowa, etc are seeing the rates of Las Vegas, Miami, CA, DC. Nor the precipitious drop.

It’s affecting them, but not to the same extent because they didn’t write the same mortgages in many areas. I have friends living in the midwest who don’t know one person who has a crazy loan. And yet everyone in CA and New England, I’d say many I know did USE a crazy mortgage. But they were young and stupid.

Very different scenarios. Unfortunately the bad decisions of a few very rapidly affected the many. In 2005 when I bought the realtor told me that already where I live people were not being allowed to buy without 20% DP.

In CA, my BIL was still being given a $300k mortgage on a $22k/year salary. How does that happen? Seriously, I doubt he might have qualified in Kansas.

How do you feel about the bailout of pensions?

And foreclosures are running certain areas of the US into the ground. I believe subprime is a small percentage of people, in limited areas of the countries.

I’m sure that everyone will be hurt by foreclosures, but some areas more than others. I am fortunate to live in a popular area in a popular city, where home prices have been stable and we never saw steep increases here to begin with, and the foreclosure rates are low in my county. I am not saying that we are immune to being hurt by foreclosures, but we are better off than 75% of the country.

I still am bitter about people being bailed out when they made stuoid decisions and the rest of us have to pay for it. It just makes me wonder how people are going to learn from their mistakes if they don’t have to suffer any consequences, and are even rewarded by a super low interest rate????? There isn’t a simple solution, I understand….

I disagree with you, not on the bailout, but the bit about the unions. My hometown is located where there is a GM plant, that is closing next month. My hometown thrived because of the jobs that plant provided. Now, I do diagree that a highschool drop out working on an assembly line makes as much as me with a masters degree in nursing, and has better health insurance than me, but they do deserve decent wages, but perhaps not as much as they were making. Does that make sense? A decent salary, and benefits, but not to the point where it bankrupts the company. AND I think that the auto makers saw this coming YEARS ago and did NOTHING about it. I drive a Hyundai because I like the style of the car. The 3 big auto makers have done nothing to meet the demands of the US people, especially the fuel economy and style categories. Ford, GM, and Chrystler kept making huge gas guzzlers or ugly 4 door sedans. And the 2 sports cars that Ford and GM made weren’t affordable for most. And, the warranties suck….. I have great warranty on my Hyundai and it is stylish and sporty, so that is why I bought it, much to the dismay of my father, who makes me park it in the street because it isn’t an “American” car…..

You don’t. The market needs to correct itself. If/when the government interferes, it will just take longer to correct and stabilize.

Realize Fengshui that if foreclosures occur your home price will be hurting. At least mine is the same as it was 3 years ago, so I’ve been told. I’m not really sure I’m having it CMA by 3 different realtors and they are all telling me an awful high price compared to what I feel our home is worth.

Granted MAJOR repairs have undergone while we owned.

This is quite irritating….. I closed when the rates were 6.5%, and I have to pay that. So, we should let Joe and Susie continue to pay 4% because that is what they can afford? But yet I continue to pay 6.5%????? Hardly seems right for those of us who bought a house that was affordable for our budget…..