Will the banks be asking us for another bailout?

[CoffeeCat]

Today, on CNBC, I heard one of their talking heads say that investors
are capitalize on the Japan earthquake. One method of profiting mentioned
was credit-default swaps--insurance payouts that paid if Japan defaulted
on loans and other credit.

Credit default swaps? Ok, I thought these dangerous financial instruments
would have become dinosaurs. Weren't these the little buggers that started
the cascade of Wall street failures that eventually crashed Wall Street and the
mortgage companies and culminated in a bailout--paid by all of us???

Another thing. I just got a letter from Freddie Mac. Wells Fargo sold our
mortgage to Freddie Mac. Two other friends said they rec'd similar letters.
Their mortgages were sold--mainly from the "too big to fail" banks to large/mid-sized
financial institutions.

It may be typical to sell mortgages, but I hope to Pete these banks aren't
repeating the horrendous actions that led to the mortgage collapse. Are these
banks packaging up loans, selling them as securities on the secondary market
(to make further profit) and are these mortgage bundles unstable? The economy
sure is. There is a lot of uncertainty out there.

How can these banks get billions in help from us, then turn around and commit
the same financial crimes? Will we be robbed once again, while these bozos
stand around shrugging their shoulders-acting like they are victims as they
scream, "Well golly shuckers! No one could have possibly predicted this!"?

I guess time will tell.

[mstinamotorcity]

1. As long as

there are those still Commercing with the "too big to fail" banks you will have this problem for awhile. The only thing that changed was if they need money,and were headed for bankruptcy, they can now have someone go in and break up the banks. which seemed real low on the list after all the other things they could do before that happens.

[CoffeeCat]

2. We got our mortgage from Wells Fargo...

..years before the bailout. So, we were in the dark about what was happening.

Now we know. So maybe I should just be glad that they no longer hold our mortgage.

Who knows.

[abelenkpe]

3. Think you should be glad

I do think eventually the big banks will be either nationalized or broken up. They are definitely still in trouble as the economy and housing market are still wobbly.

[mstinamotorcity]

4. Well I am Thankful

that you still have a home and are able to pay the mortgage. And as soon as you can reduce debt to zero, and pay for everything cash. Join a credit union. Don't give the banks your money to bet against you with. You are truly blessed. Stay cool.

[CoffeeCat]

5. Great advice, and thanks for reminding me...

...that we are blessed. We can pay the mortgage. Sometimes it's easy to forget
how lucky you are--especially in this economy.

Thank you. :)

[mstinamotorcity]

6. I really was not trying to

remind you of your blessings. Thats just a bonus, to really being happy for my sister or brother having the ability to take care of their needs.I just want you to be able to hold on to the things which you have acquired. The home is usually the most valuable asset that a family has. And you deserve to have it. Keep up the good work,it will help you to help others.