Americans Against Mortgage Bail Out
Americans are overwhelmingly against the
U.S. Congress bailing out the nation's financial markets from the
subprime crisis, according to a new poll by Housing Predictor.
Americans overwhelmingly believe the U.S.
Congress should not bail out the nationís financial markets from the
subprime loan crisis, which is spreading into the conventional
mortgage markets, according to a new poll conducted by Housing
The online survey overwhelmingly showed respondents do not want the
government to get involved in the hedge fund debacle, which is
reported to run into billions of dollars in losses for investors,
Wall Street investment houses and home owners under going
Eighty-one percent said they did not want the government to bail out
investment houses or get involved in the crisis. Only 19 percent
said they wanted Congress to bail the hedge funds out of trouble.
The online survey was conducted over a 30 day ending August 4.
U.S. tax payers paid billions of dollars in additional taxes to bail
out the savings and loans in the 1990's when the U.S. Savings and
Loan Fraud scandal occurred, which was the largest white collar
scandal in the nationís history. It cost every man, woman and child
an estimated $10,000 at the time.
Foreclosures are at near record levels in many real estate markets
throughout the nation as a result of the subprime crisis. Investment
hedge funds provided funding for mortgages to borrowers with damaged
credit, making them at a higher risk for foreclosure. As interest
rates adjusted on many mortgages an increasing number of subprime
borrowers either could not afford higher payments or were
discouraged enough to walk from their mortgages all together due to
a slow down in the housing market.
The subprime crisis was mainly contained to lower and middle class
neighborhoods in urban centers, not affecting a larger majority of
the nationís real estate markets, but a Housing Predictor study in
April showed the crisis had crept into conventional lending markets.
However, second home and vacation markets are immune from the
crisis, and purchasers of higher priced real estate rarely attempt
to obtain mortgages through the subprime market.