An Alternative to Mortgage Bailouts by Government
By bobmnu
@bobmnu (8157)
United States
February 21, 2009 2:23am CST
During the Depression Wisconsin had many farms in foreclosure and families about to lose everything. there was no government bailout, not government telling banks to rewrite the loans. Instead one company that I know of saw a way to make a profit and put the farms back in production. An Insurance company bought the farms at foreclosure and hires people to go around and visit each farm to see if the farmer was going to be able to make it. In the case of a farmer with a record of running good farm but just fell upon hard times the agent was authorized to write a new mortgage on the farm and have the former owner work the farm and buy it back from the company. The company made money (like any business should) and the farmer got his farm back. The agent had to make yearly visit to check the books and see how the farmer was doing running his business. Most farmers did a good job and were able to buy back their farm, but there were a few who no matter what you tried just could not make it and lost their farm.
If the government would have kept out of the mortgage business and let these home be foreclosed on the banks would have worked with the people who could be successful. It would not be easy and they might not make it. Think about it, what is the bank going to do with hundreds of house and nobody to sell them to. They would work with the best buyer available and that would be the current owner. The free market will work if the government does not try to make everything fair and equal. Life is not fair.
2 responses
@Destiny007 (5805)
• United States
21 Feb 09
The free market would work if the government would stop interfering.
We would not be in this mess if the liberals and ACORN had not forced the banks to give home loans to people who had no business getting them in the first place.
The banks were forced to make loans to un-creditworthy people in the name of fairness and as a result the economy tanked.
This did not have to happen, and it was caused by the subprime mortgages and Freddie and Fannie, by ACORN, by Barney Frank, by Dodd,and even 0bama had a hand in it when he sued the banks on behalf of ACORN for redlining bad credit risks.
The government caused this mess, and now the government is destroying our economy by meddling even further with the markets.
@bobmnu (8157)
• United States
24 Feb 09
I grew up in the 60 and saw the Civil Rights groups in action. Most were doing the right thing but some were out to cause trouble. I remember when Jessie Jackson, a young and angry man, wanted something from the City of Chicago. Mayor Daily refused until Rev. Jackson threatened to give every (His Words) "ni**er in Chicago a quarter and have them sit in the toilets of O'Hara Airport day and night. mayor Daily gave in to his demands. I also remember some of the actions talked about to disrupt banking and retail stores. One called for people to open savings accounts in the morning and then close them in the afternoon. This would tie up the bank people so they could not conduct normal business. In retail stores instead of a boycott you would purchase an item in the morning and return it in the afternoon. What would happen today if a Pro Life Church had all its female members go to an abortion clinic and ask for services, have an exam and then at the last minute decide not to follow through. The Clinic would get an injunction against the church and probably win.
In the law suit President Obama filed with ACORN against CITI Bank the court records show that it was settled out of court. There was a comment by someone that the bank settled after they were threatened with demonstrations. Most of the time in such settlements money and a change in policy is what is agreed to . Some call it Legal Blackmail.
@LilPixelle (828)
• United States
21 Feb 09
Life is not fair. This is very true. And is in excellent application here. I agree, the Government seriously just needs to butt out.
