What about people preparing to take on new fixed-rate mortgages?~~~
I have a question for the ones that keep talking about 'short sales'?
Homeowners that let the bank sell their homes at half price, and then turn around and buy it back from a friend or family member. How could you possible get the credit to buy the house back? If I let the bank take my house, the bank would not even give me credit to have a debit card? How can you buy a house back without any credit? Someone please explain that, and pretend you are talking to a 12 year old.

Economist and government still doesn't get it. Our country is bankrupt, no one has money, and the growth of our country is being forced down the consumers throat and its gagging us all. Jobs and wages are the lowest ever with the lowest amount of expendable income and they think lowering interest rates is going to be an incentive to go and get deeper in debt? Then interest rates are the the most expensive cost of credit, its the add on fees and charges and manipulating payment dates to get added charges. The system is corrupted and fraudlent and that is what consumers needs fixed. Credit cards are the worst offenders of consumer abuse so it should be hit hardest with regulaton and controls. Even a zero percent interst charge does nothing to protect or help the consumer when the financial industry can make it up in high fees and other charges. The legislators and economist better get their heads out of the sand and just throw away every thing they thought they knew about consumerism as a basis for our economic growth. They need a good solid reality awakening to the consumers reluctance supporting this corrupted economy.

The government isn't your mother (although it tries to be). The government can't save us from the excesses of the millions of greedy people who either sold mortgages to people they knew couldn't pay or people who took those mortgages for whatever reason (very often for speculative purposes). Bush adminstration officials were less than candid when they suggested they could save us.

While I am not generally a watcher of CBS evening news, they did have a nice piece on how banks should operate emulating the conservative practices of small banks across the country.

20% down, you must have good credit, you must be honest, and you must be able to have the established income to make the payment.

While I am generally in opposition to banks, those simple practices ensure banks will be prosperous forever. Period.

However the greed got out of control in government and some of these large banks.

The only way to correct this is allow these companies to fail and allow these banks to collapse. If they don't do it now, the worse the future will get. But with the passage of the bailout, that is now irrelevant.

Hard times are ahead. Worse times than the depression.

There is no "FIX" as long as we think this crisis is just the government's fault (of course mostly President Bush)... there is no government 'fix', the change has to happen within us, the drivers of the economy.

Just like with Global Warming, WE need to change our life-style to make a difference.

The government can make as many speaches, proclamations, policy changes, fixes, bail-outs, buy bad loans, by mismanaged banks and convince people that all we need is more government oversight of our lives and our businesses and they will insure everything goes fine in our lives, but it will NEVER 'fix' the problem until WE take personal responsibility for our lives, our spending, our earning and live providently.

We need to plan for the future and include some unforseen bumps and down-turns into our plan and then manage our finances to insure we don't buy more than we can easily afford. THAT could 'fix' the problem, not giving control of our lives and the economy to the Government.

"Too late" has it just about right. Government, not capitalism or the free market, has been the source of our troubles. When government creates a monster like the Federal Reserve and a fractional banking system, credit is king. The Fed operates on the falacy that credit is the engine of prosperity, To the contrary, savings should be the engine. But the U.S. savings rate is below zero now because you're punished if you save. This whole economy is upside down, thank to government economic policies.

It's the consumers people. No one seems to get that. All these slick salemen out there make their living of from selling you something. There are millions of products to buy and select from. Ultimately YOU the buyer or in exact terms the consumer are responsible for what you sign and the obligation you agree to. All of you spoiled rottens that think you can have everything and anything you want have really caused this mess. Just say NO to things that are beyond your budget. Live with what you have and what you are. This is not a FANTASY WORLD we live in, face up to reality please. Say no to these sales people and corporations that want to prey on you. Now another word of advice--remember what we are in and what got you and us here the rest of your lives. Don't ever go back to that mentality. This is not going to be pretty, but hang in there.

This is what happens when you do "Something is better than nothing" without thinking it through. I think personally, they should have taken the 70 billion dollars and divided the amount by each tax paying family, or individual NOT MARRIED (Only one per household of couples living together not married) and giving each home a check for the amount. It would be SIGNIFICANT Money! This way the TAX PAYER BENEFITS for once!!! They could have paid off mortgages, cars, credit cards, bought homes, cars, major and minor purchases and America would spend it's way out of the crisis. Why did the government forget about the little guy again? Because lobbyists and banks, and wall-street are greedy! They said, "We are in serious trouble, government help us out!" What about us "Joe Sixpack"? We would have put money in the banks, it would have jump started everything through the people who matter, it's citizens! Put some attachments on the bill to protect us from gouging, from scammers, and investigate the bank CEO's and Government Personel like Christopher Dodds, Barney Frank and others who got us into this mess! I wrote Orrin Hatch about this idea, never responded! Vote Him OUT!

Get rid of TOTALLY these rate adjusted loans once and for all. They absoluetly do not serve a purpose for any borrower. If you don't have it,you don't need it. Fixed rate loans ONLY. Down payments, good credit, these are basics. Whats happened to our whole credit responsibility? Slick sales people, greedy financiers, and irresponsible consumers. What are people anymore--IDIOTS? Work hard, and spend smart. Very basic, but it works.

This coming Xmas 50% of you consumers will probaly consider doing the same things that you have been doing in the past--OVERSPENDING. Stop that too. Xmas was not meant to be a commercial celebration to begin with, how did we ever get to where we are at today with this spend, spend, spend mentality for Xmzs? RIDICULOUS just stop it, life will go on and be fine without you average citizens going on a spending frienzy for christmas. Save for a change and see if you don't like it. Quit always being obligated to a creditor, it is enjoyable.

I don't have ALL the answers, but. . . you said "If I let the bank take my house, the bank would not even give me credit to have a debit card?"

You don't have to have credit to have a debit card. It's not a credit card.

And, buy the way, you can have the most LOUSY credit and get a credit card.

The reason we have this convoluted loan scheme is to give everyone a piece of the American Dream, i.e., a home, new car, boat, big-screen TV, etc., etc. That's how congressmen get reelected. It's that simple.