Most Americans Oppose Mortgage Bailout for Borrowers

Posted by Hans Bader

Most Americans oppose a mortgage bailout, both for borrowers and for lenders.  They oppose bailouts for homeowners by a roughly 2-to-1 margin (53 percent to 29 percent).  They oppose bailouts for lenders even more strongly, “by a 4-to-1 margin,” according to pollster Rasmussen Reports.

CEI earlier explained why mortgage bailouts are a terrible idea here, here, here, here, here, here, and here.

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03/28/2008 @ 1:39 pm | Constitutional & Legal, Economic Liberty | Comments

14 Responses to “Most Americans Oppose Mortgage Bailout for Borrowers”

  1. Posted by: More Foolish Mortgage Bailout Proposals | OpenMarket.org - 03/29/2008

    [...] out mortgage borrowers is a bad idea that most Americans oppose.  Yet the “Bush administration is finalizing details of a plan,” “backed by [...]

  2. Posted by: Mortgage Bailouts Rob Thrifty Ants to Appease Irresponsible Grasshoppers | OpenMarket.org - 03/31/2008

    [...] bailout proposals are proliferating, even though bailing out irresponsible borrowers and banks is a stupid idea, and is unpopular with the silent majority of Americans, as public opinion polls make clear.   [...]

  3. Posted by: Mortgage Bailout Policies Drive Out Investment in U.S. Economy | OpenMarket.org - 03/31/2008

    [...] flies out of the country” even faster.  Mortgage bailouts in general are not only a bad idea, but unpopular in public opinion polls, as we previously noted. addthis_url = [...]

  4. Posted by: Senate Poised to Pass Mortgage Bailout and Counseling Boondoggle | OpenMarket.org - 04/01/2008

    [...] downpayments) that their mortgages currently exceed the value of their homes.   The public opposes mortgage bailouts, and they are a bad idea that turns Aesop’s fable on its head and discourages investment.  [...]

  5. Posted by: More Costly Mortgage Bailout Bills Loom | OpenMarket.org - 04/05/2008

    [...] Senate leaders that would provide millions of dollars of pork for left-wing lobbying groups.  We and other commentators earlier explained why bailout proposals similar to Dodd’s are a bad, [...]

  6. Posted by: Congressman Frank’s Mortgage Bailout Pays A Disastrous “Ransom” | OpenMarket.org - 04/23/2008

    [...] in the least objectionable way, since it focuses on bailing out borrowers rather than lenders.  (The American public opposes mortgage bailouts, both for borrowers and for lenders, according to public opinion [...]

  7. Posted by: Congressional Leaders Strike Deal on Telecom Surveillance | OpenMarket.org - 06/20/2008

    [...] bill loaded with left-wing pork to buy up its defaulting loans, at taxpayer expense, even though the American people oppose mortgage bailouts, which are bad for the economy.  addthis_url = [...]

  8. Posted by: Congress Rewards Reckless Agency That Caused Mortgage Crisis | OpenMarket.org - 06/22/2008

    [...] bailout bill would further destabilize the housing market by encouraging borrowers to default, and most of the public opposes mortgage bailouts, Congressional leaders favor them, since mortgage bailout bills contain pork for [...]

  9. Posted by: Mortgage Bailout Bill Is Corporate Welfare | OpenMarket.org - 06/25/2008

    [...] bill, since the public opposes bailouts for mortgage lenders even more than bailouts for borrowers (although it strongly opposes both).  Another group that helped fashion the bill, according to the bill’s house sponsor [...]

  10. Posted by: Mortgage Bailout Bill Is Corporate Welfare | OpenMarket.org - 06/25/2008

    [...] bill, since the public opposes bailouts for mortgage lenders even more than bailouts for borrowers (although it strongly opposes both).  Another group that helped fashion the bill, according to the bill’s house sponsor [...]

  11. Posted by: Herb - 07/12/2008

    About 17 years ago my wife and I took out a mortgage on the home we currently live in. At that time, we agreed to a fixed rate of about 11%, but we did have the option of an adjustable rate loan that would have been at a much lower rate, at that time. We had enough common sense to KNOW that eventually the adjustable rate WOULD GO UP and we knew it could possibly go up quite substantially. That was the reason we decided on a fixed rate loan, one that we could afford to pay back. Since all of these people that are now having trouble paying back their adjustable rate loans had the same exact options as my wife and I had, I do not AT ALL feel sorry for them nor do I think ANYONE should be bailing them out or even helping them out ANY AT ALL! My wife and I are having a very difficult time with making ends meet, especially since I became disabled after getting our home mortgage, but I do not see anyone trying to help US pay our mortgage, nor would I expect anyone to help us. I do not at all think it is one bit fair that WE, as taxpayers, may end up helping all of these IDIOTS pay for homes they could not afford, especially when we can barely pay our own bills! Too many people in the United States of America have become TO DEPENDANT on others rather than taking control of their own situations and as long as our government continues to bailout idiots, these people will NEVER learn discipline and self-control!

  12. Posted by: Site Build Update — Slick ‘n’ Slack, the Babble Brothers - 07/15/2008

    [...] Mortgage Bailouts [...]

  13. Posted by: dwmac - 07/15/2008

    Folks….at one time most lenders told most borrowers that the most house they could afford was approximately twice their annual gross income. Maybe some folks can stretch that a bit…..but I see no way a single parent making $45K per year can afford a $400K house. Or even $200K. Period. Ever. In any housing market. Adjustable rate or no. Rebates or no. Negative amortization or no.
    And remember–most mortgages are still written so that if the market value drops below loan balance, the mortgage holder can demand payment of the difference on very short notice, and buyer should be in some nominal situation to furnish such payment.
    Maybe the stories I have heard the most are non-typical; but most of the ‘mortgage trouble’ sagas I have heard are either too much house, or cannot refinance after negative amortization.
    Face it–in some housing markets, some income-levels should not try to buy a house at all. The dollars just do not fit.

  14. Posted by: Kate - 07/16/2008

    When we bought our house five years ago, there were lenders that were trying to sell us adjustable rate mortgages and realtors that were trying to sell us the most house that we could get, but we bought a smaller house that we could afford and took a 30yr fixed loan. This loan is our responsibility and we chose not to GAMBLE with our most important investment asset. These greedy borrowers, lenders and investers GAMBLED with their money and now they want taxpayers to bail them out. This housing bill needs to be vetoed!

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