Scum – sucking low lifes to be rescued by Obama

Taxpayers will bail out real estate speculators. (Sent to me by AJ, our reader who loves conspiracy theories and who is beginning to remind me of the adage,”even paranoids have enemies”. )

By widening the program, the plan will inevitably offer aid to buy-and-flip investors who pushed prices higher during the boom by taking out mortgages with little or no down payment. Speculators accelerated the crash because they were quick to default when prices fell, according to a September report from Andrew Haughwout, Donghoon Lee, Joseph Tracy, and Wilbert van der Klaauw of the Federal Reserve Bank of New York.

At the peak of the boom in 2006, more than a third of home purchase loans were made to borrowers who already owned at least one house, according to the study. In California, Florida,Nevada, and Arizona, which had the most pronounced bubbles, investors accounted for 45 percent of the mortgages.

While survivors of the property bust are now long-term investors, some of them may have started out as flippers, Haughwout said.

Chandrajit Bhattacharya, an analyst at Credit Suisse Group AG in New York, said that the HAMP changes will result in about 200,000 modifications for investors. While it won’t keep bondholders “up at night,” it will probably slow the process of liquidating foreclosed homes.

Bhattacharya said he doesn’t understand why the government should be subsidizing workouts for property investors who are in the business of making money on their purchases. Vacancies are unlikely to increase if the houses go into foreclosure and are purchased by owner-occupants or new investors who fill them with tenants, he said.

9 Comments

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9 responses to “Scum – sucking low lifes to be rescued by Obama

  1. Anonymous

    Sounds a bit rich coming from you, CF?
    These speculators were probably your bread and butter in the boom days.
    You were probably happy enough to live off the fat of their deals when times were good.>>>

    • Thank you for such an intelligent comment, based as it is on a complete ignorance of my client base – have you anything else to contribute or are you content with your argument that so’s my mother?

  2. Walt

    Dude –
    I have actually been pounding out our treatment all day. When I need a break, I post some stupid shit on your blog. What have you been doing today? NOTHING YOU LAZY LOAD!! Posting some inane crap that no one reads, and making up some words to piss me off. GET A LIFE YOU LOSER!!
    Anyhows, I am through your early life, and am at the point where you hit puberty. You did hit puberty, right Dude? I need you to fill in some parts, I think. I will use literary license, if you agree, but I want it to be as accurate as possible. Did you become addicted to self pleasuring yourself at 8 or 9? Earlier? YOU RASCAL!! BE HONEST!! When did you become obsessed with wearing woman’s panties on your head? Do you think you will ever stop?
    What is your favorite animal to kill and why? When you got arrested for exposing yourself in Victoria’s Secrets on Greenwich Avenue, did the GPD treat you with respect? They treated me like crap, but don’t let that bias you.
    This is taking shape, Dude. I think you will like it!!
    Your Pal,
    Walt

  3. AJ

    Conspiracy is not just a theory anymore. Sunstein, Obama’s head of the Office of Information and Regulatory Affairs wants to make conspiracy theories against the law. Just Google Cass Sunstein conspiracy theories and you’ll see.

    Cass Sunstein Conspiracy Theories Ban – Infiltrate, Tax, Spy
    President Obama’s control-freak, Czarist Cass Sunstein want the U.S. government to ban all “conspiracy theorizing.” In a 2008 Harvard law paper, he recommends that government agents infiltrate “extremists” who believe in conspiracy theories.

    Source: http://maggiesnotebook.blogspot.com/2010/01/cass-sunstein-conspiracy-theories-ban.html

  4. Anonymous

    Come, come, Christopher. You’re trying to tell us that you never took on any of these clients to make ends meat? Next thing you’ll be telling us that Walt is a virgin………

  5. peeps

    You sit around and wonder how these people can juggle so many properties, and then it turns out that they are no smarter than I am. At least I know when I can’t afford a bunch of houses and don’t buy them. Now we have to bail out these overconfident greedy dicks? If I knew the flippers were going to get bailed out, I would have tried that, too. Part of what keeps people from overbuying what they can afford is the fear of failure. The government should not take that away. They are taking the whole meaning shortening of the word “speculative” out of the term “Specbuilder”, no? Doesn’t it ruin the whole idea of something being speculative? No one calls them guaranteed sure-thing builders, do they?
    I guess I’m just depressed I didn’t overextended when I could have. Uncle Obama maybe would have bailed me out, too?

  6. AJ

    Anonymous @ 6:08 not all buyers who are speculators announce that they are speculators, and bottom feeders and speculators are not necessarily synonymous. But there is nothing wrong with being a speculator, also know as an investor, or a business person looking to make a profit. There is nothing wrong with buying a stock, bond, option, or even a house and hoping to make a profit on it within whatever time frame you choose. However, there is a huge problem with expecting other people such as taxpayers to make good on your losses, or bad bets, even if you’re too big to fail. Also it’s against the law to refuse to show someone a house. You can qualify them to make sure they’re able to pay, but if they do and you’re the seller’s agent you can’t refuse to show them the house. But it’s election time, and Secret Santa has a bag full of gifts for everyone.

  7. Shoeless

    Anonymous,

    As you stand behind your most creative moniker, I will tell you what Chris already should have. Go fuck yourself.

  8. Libertarian Advocate

    Peeps: You’re missing the whole point. The speculators are mostly yuppie Democrat voters.