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Originally Posted by B4C
DO NOT DO NOT buy stock in ford. For has been in the crapper for years and have had record loss the past few. On another note does anyone think there is going to be a fix that dosent hurt the tax payers??
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I know everyone is bitter because of the buy outs, but realistically it is the best thing for the long term economy. If Fanny and Mack had been allowed to fail and had to file, that would have meant the sale of assets, ie: all of your mortgages. Something that very few people know and mortgage companies thankfully rarely take advantage of is the ability to adjust your loan terms without even telling you. Basically, every questionable loan would have been called first thing, everyone would have forclosed, and anyone who managed to keep their home would just have to sit back and watch it devalue while you pay across an increased negative equity thanks to the drop out in proerty values.
It blows, but it is reality. This is no different than the government bailing out the airlines from their own mismanagement or when chrysler got a few billion in help to stay alive. It is a move that is in the best interest of the economy, it leaves the bulk of the working population uneffected, at least not in the horrible way that watching half of the home loans in the country go into default.
The amazing thing is that everything that lead up to this was and remains perfectly legal. It will take them 10 years to rewrie the laws in any effective manner and by then all of these slick accountants will have found a new loophole to exploit.