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View Diary: Righteous TARP Fury! (In the form of a SWL.) (166 comments)

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  •  If they Don't Need it, Then Pay it Back (0+ / 0-)

    I think the money was pushed by Paulson in the old Bush era.  They just gave away our taxpayer money.  We need the money back.  Perhaps that's the first step in decreasing the deficit.  Since they didn't need the money in the first place, it won't hurt them to pay it back.

    I am just amazed at the extent of elitism demonstrated by these banks and Wall Street. Many of these banks won't make loans to credit worthy people.  Furthermore, people that I know who have good credit and haven't missed any credit card payments are victims of the triple whammy.  (1) Increasing interest rates, (2) severely reducing credit limits that results in (3) damage to the credit rating.  Think about the components of a credit rating -- one aspect looks at the amount of credit that is available and how much you use.  An example is a credit card with a line of $1,000 and the consumer used up $500 of it, makes $250 monthly payment on the card and payment is always timely.  Now the credit line is reduced to $500 and at some point during the month, the consumer has used up all of the available credit and undergoes a downtown in his credit numbers.

    So, that person decides to only use 1/2 of the available credit that month and the bank again reduces the credit limit by 1/2, yes that means the $250.  My daughter has paid off and torn up most of her credit cards.  In the long run, it is better for her, but in the meantime her credit is screwed.

    By the way, her monthly mortgage has increased twice in the last six months.  She's now paying an additional $400 monthly.  Yet, her payments are always made on time.  She's not eligible for the new housing program because (1) she is not in default (2) her house value has not gone down (3) she has a second mortgage.  She tried to get a modification through her bank but they refused to talk to her because she wasn't in default.  She finally got them (after 6 months) to look over her loan for a possible modification.  They told her over the phone she wouldn't get it and said the explanation would be in a letter.  The letter told her to call them for an explanation.  BS to the Bank and to Santelli with his elitist attitude.

    My daughter could ask the same question that Santelli does?  Why, if I've done everything right, why should I suffer?  Rather, she has plotted a new strategy.  She's going to wait for six months or so until she can rebound from the damage wrought by the reduction in lines of credit and go for an outright refinance.

    By the way, I think her bank got $40b from TARP.  

    What separates us from animals is our "intellect."

    by irrepressible on Wed Feb 25, 2009 at 10:34:41 AM PST

    [ Parent ]

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