Voting Question: home equity line of credit?

Someone still needs to explain to me why I or any other taxpayer should bail out a homeowner that was able to purchase a house they couldn’t afford in the first place. The fact is is that the vintages of mortgage loans primarily impacted (late 05, and 06, 07) are subprime with little/no documentation of income (read in–they did not have enough to support the payments after the teaser rate ended and should have known it), home equity lines of credit (read in–they lived beyond their means), and second mortgages (see preceding comment). In many cases, these were speculative investments where the investor/homeowner thought they could flip the house. And I (as a taxpayer), who purchased only that amount of property that I could afford and got a loan commensurate with that thought process should pay for those who should never have been in that house in the first place? Note that I don’t even have a house–I have a condo, but I’m supposed to pay for someone else to have a house they shouldn’t? I asked this question to get other perspectives. Tony, you raise an interesting point about those who bought houses for their families at the then-current market price and got screwed by all the speculators. Theoretically, they could have rented for the time being due to the exorbitant prices, but that assumes they knew the bubble would pop. Since buying a house is a huge investment, do you think all buyers should have educated themselves and avoided buying in a bubble? Or do you think this is entirely impractical? Being in the business, you might have a better idea than I. Thanks for your input. Nuff, your point concerning redistribution of wealth via tax rebates is interesting. I'm glad you mentioned that. Do you have a reference for the 56 trillion #? Rush The Band & Stage Dive,

There are talks going on right now about the degree of intervention, if any, the government should pursue. Paulson seems to be right on expressing educated views rather than "speculation." (Wouldn't it be ironic to fix a problem caused by excessive speculation with yet more speculation?)

"'While some in Washington are proposing big interventions, most of the proposals I’ve seen would do more harm than good,' the secretary said in remarks prepared for delivery to the Economic Club of Chicago, according to The Associated Press. 'If borrowers aren’t willing to ask for help or respond to efforts to reach them, there is only so much that others can or should do on their behalf.'

The speech was expected to reiterate points that Mr. Paulson made in an interview published Thursday in The Wall Street Journal. Too many of the aid proposals circulating in Washington are 'bailouts' designed to help the reckless, he told The Journal." [1] [1] http://www.nytimes.com/
2008/02/28/business/
28cnd-econ.html?hp

Thank you all for your inputs. I like Yahoo Answers for collecting other perspectives to balance out my views. Metallic,

Too few people realize the importance of feedback. We train animals by how we respond to their various activities (if I understand correctly: otherwise, correct me here). People aren't so different from my observations. Are responses to the actions of others are FAR more important than our words of caution (lol). If we reward (and it is a reward as far as feedback is concerned) their excessive speculation, they will learn that future speculations will be similarly bailed out. For daddy to bail out spoiled little junior only reassured him that he can be as immature as he wants 'cuz he'll always be bailed out. The end result is much more speculation. Rather than sheltering whoever these people are (and that's a question I'd like to see answered), perhaps they should learn their lessons rather than having big brother reinforce their behavior. I agree with your point completely. Thank you. oops: "Our responses..." (tired) re-oops: "only reassures"
(no preview option for additional details) Re: national debt (net)

5.2 - 5.5 trillion held by the public [2, 3]

[2] http://www.treasurydirect.gov/
NP/BPDLogin?application=np
[3]
http://zfacts.com/p/461.html

Resolved Question: Should I work with my own financial institution ?

I have about $19,000 worth of debt,one is a primeline home equity line of credit for $13,100 with an interest rate of 10%.I can only pay the interest right now and that is alot.
Two quick cash accounts for $1,200 total with an interest rate of 18% each.And a car payment of $3675.00 with only a year and a half to pay on it. My question is. Should I try to consolidate with my own credit union or should I go to a credit consolidation company ? I am not late with any of my payments,so paying them is not a problem. I just want to get out of debt a little faster Thanks for any answers.. Thank you for your answers, I have solved my problem with my own bank.I incorporated the smaller, but higher interest rate loans, Quick cash, 18% interest, with my lower rate car loan and extended the payments for 5 years at a lower monthly payment at $130 a month.That is $80.00 a month less leaving me more money to finally start paying the principal on the Prime line, Plus I am picking up more hours at work .more$$$
Also the consolidation companies do not work with secured loans anyway, Mostly credit cards, I talked to alot of them today.

Voting Question: home equity line of credit?

I have a first mortgage and a HELOC right now. Is it possible for me to refinance my first mortgage but not pay off my HELOC? thank you.
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