Posted on 09/09/2009 8:47:34 AM PDT by Kartographer
Only 12 percent of U.S. homeowners eligible for loan modifications under the Obama administration's housing rescue plan have had their mortgages reworked, and millions more foreclosures are coming, the Treasury Department said on Wednesday.
A Treasury report showed 360,165 people had their monthly payments reduced through August, up from 235,247 through July, but a senior Treasury official conceded much more must be done to soften the impact of a severe and prolonged housing crisis.
(Excerpt) Read more at abcnews.go.com ...
Add this to the list of failed programs.
Not for the banks. They got billions from tarp and other programs while the taxpayer got nothing. Then will the billions they got, they kept it so they are fine financially.
b..bb...bbb..bbu..bb...bbb..bb...but, I thought Obama was going to pay all of our mortgages for us...
>> Home Affordable Modification Program <<
HAMPering economic growth?
I don't know anyone who actually attempted to get their loan modified under the “rescue plan” who didn't face a dead end.
Hate to be a landlord right about now...how long have some of these people been living in their homes for free? I have a co-worker who has lived in a house for months without paying for it, then the bank started to “work” with her. I am sure many of them have developed a habit or even a sense that they do not have to pay for their place to live.
ahhh but wait...the fed keeps reporting that the recession is over....how can this be...??...people still being laid off or having wages cut...homes still be forclosed on...taxes and products going up daily....i ask..who is the recession over for...??....
I know a guy who has lived in his house for 8 months without paying and he has a coworker who hasn’t paid in a year... both still live in the BANK’s house for free.
Arugula
bump
The Fed still refuses to force the banks to mark their assets to their actual market value, which would reveal the rickety, rotting structure beneath so many of them - and scare the hell out of people. Which.... the Fed really doesn't want to happen because the FDIC is also on the verge of insolvency. You read that correctly. Have a nice day.
Do you have an opinion as to which is safer: an FDIC-insured CD or a brokerage money-market?
I've been limiting my CD purchases to 10K per bank, not that it matters if the Treasury cant make good on its promise to the FDIC. But I still have a fair amount in Fidelity Cash Reserves and Muni Funds.
A persistent lack of transparency on company balance sheets makes it challenging to know which is the "safest", but a large diversified institution like Fidelity is a pretty fair bet.
Muni funds have the advantage of state and federal tax-free income, but beware of the risk factors in some by examining their last quarterly report: too much "junk" or near-junk (BBB or Baa- rated bonds), too much concentration in revenue bonds as opposed to general obligations, and concentration in states with relatively high interest rates, but bad economies (CA/NJ).
I have a simliar pessimistic outlook as you, Andy, BUT, there will be reactions that will prevent thousands of bank failures. We’re talking a the real nuclear option, a “ Jubilee” type event.
Also, there is no way the FDIC will actually go insolvent. The government and banking elite will socialise the failure through debasing the currency and print new debt to fund the FDIC fund. In theory I’m against the idea of socialising the losses and privatizing the profits and consolidations, HOWEVER in the real world I have family to take care of and I don’t want to defend a tract house with elderly relatives living at a subsistence level inside.
I leave you with a link:
http://commendatori.wordpress.com/2009/03/03/how-venice-rigged-the-first-and-worst-global-financial-collapse/
How Venice Rigged the First and Worst Global Financial Collapse
Posted by commendatori on March 3, 2009
How Venice Rigged the First and Worst Global Financial Collapse
This article is reprinted from the Winter 1995 issue of FIDELIO Magazine.
by Paul Gallagher
Printing phony money only works for so long. What we might end up with instead is millions of people owning homes with no readily identifiable bank to whom to pay the mortgage, except perhaps a claimed successor-in-interest in some Chinese canton you never heard of before, even from the restaurant menu.
I have never been late with my mortgage payment but received an offer from Bank of America to call to check if I qualified to refinance at 5.75 for a 30-year fixed. Slight problem — I have a 30-year fixed for 5.25. Guess it would be good for them if they could convince people it is a great deal.
I think the FDIC actually burnt-off the last of their reserves a month or so ago.
They do, however, to the best of my knowledge, have a $500 BILLION Line of credit with the Fed.
Of course, to whatever extent they draw on that it just means either more bonds the Treasury has to sell into a glutted market, or the more money the Fed has to print.
We don’t need to refinance either, but we received a call from some loan company offering us some new deal from Obama himself. I could barely contain my anger. I informed the caller that we weren’t interested in anything that had Obama’s name attached to it!
“These sausages are burnt!” ~ Urchin #17
“Shut up and drink yer gin!” ~ Fagan
Best line of the movie, LOL! :)
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