Unintended consequence of government intervention in the mortgage crisis

They will survive though. My feeling is that the "perfect" planned scenario is that "we the Realtors" are eliminated altogether. That certainly adds the profit back for the banks. Not that anything will be processed correctly but hey...they're looking at their bottom lines. It's time to eliminate us...in their dreams.

Great questions....Deb

To keep it simple, they won't be able to pay much interest on the money that you save there. You can't promote saving and borrowing at the same time.

Lets be honest though, this is all about the government taking over the banks and nationalizing them. They tell the banks "you have to take the bailout money." Than after they take it they say," since you took the bailout you have to run your bank like we tell you to."

They will do the same thing to the auto industry and the health care industry.

Johnnie

We are going down a road that we will not soon find an exit from. 

Hi there,

You're right, I've heard the same thing myself, that is lower limits yet higher rates.

However, two of my interest rates actually decreased, my HELOC and business line of credit, both are adjustable and surprisingly low right now. About 6 months ago I called one of my creditors and asked about a rate reduction, they said o.k. and dropped it 2% on the spot.

I've actually heard that this is on Barney Frank's agenda. If anybody has any equity left, they should get rid of those credit card balances with a HELOC while those rates are so low.

I myself was incensed when AMEX decided to put a limit of 1000 per month on my own green card when i charged an average of 3,000 a month (paid off every month) for my mtg business for the last 20 years -because of "the economy".  Never been late, never had a limit!  And the credit card companies are ruining people's fico score b/c they are bringing down the limits to their current balances which makes them look like they are maxed out!  I agree, I wonder if this will be addressed!