Posted on 10/04/2010 5:42:25 AM PDT by blam
Obama Just Got The Green Light For A Massive Bailout Of Underwater Homeowners
Joe Weisenthal
Oct. 4, 2010, 4:37 AM
It's been proposed for a while that the Federal government -- probably via Fannie and Freddie -- pursue some kind of massive bailout of underwater homeowners (some combination of refinancing and perhaps even principal reduction).
But the mechanics and especially politics of this have always been dicey.
Remember, it was a Rick Santelli rant on just this subject that basically started the Tea Party movement. People don't like bailing out banks, and they don't like bailing out their neighbors.
But with foreclosure-gate -- banks are halting foreclosures left and right due to shoddy or missing paperwork -- Obama might have the green light. Rather than pitch the homeowner bailout as a bailout, it would be a mere intervention so that homeowners aren't under seige from evil bankers.
It's probably too late for an October Surprise, which is when it was initially speculated we might see this, but as a trick to pull to launch Obama's 2012 re-election campaign, it would be a good one.
[snip]
(Excerpt) Read more at businessinsider.com ...
I'm not sure how this bailout would suddenly NOT piss people off as much as all the other crap he's done...
More back door reparations and sly voter bribery.
Economic Shock Therapy For Wall Street As Mortgage Lenders Could Start Falling Like Dominos
I would bet dollars to donuts, that he will pimp this program along with a special announcement that he will continue with some sort of tax cut....
He’ll stoop at nothing to further the agenda and the moron public out there will swoon once again.
My only thought is that the people who who will get the bailout are already his voters.
“My only thought is that the people who who will get the bailout are already his voters.”
Probably the only people that would be approved are his supporters.
I wonder what kind of strings come attached.
By 2012 the bad effects of this should be evident, there goes the so-called housing market, this is reparations by other means. We have already seen that over 50% of the people previously “modified” simply defaulted- again
if people don’t have to pay the banks, why should renters have to pay evil landlords? What if there are “errors” with the paperwork for car loans? Student loans?
I mean, what is “contract law” except a flexible living document that some judge or the president can overrule for personal or ideological reasons
it should not be a resume-enhancer for obama, except for the votes of the ululating peasants and squatters who will be living rent free in our deteriorating neighborhoods
the destruction continues
Eggsactly.
There are consequences.
“It’s probably too late for an October Surprise,”
***
Given this president and this congress, I wouldn’t put it past them to try to ram it through...maybe even in some secret late-night session. Or could the gangsta just simply issue an executive order? Whatever...we have to be vigilant. These folks are seeing their election and re-election campaigns swirling the bowl and they will be desperate to save them.
Free houses for those who can’t pay for them
at the expense of those who are paying for their own.
The bail out might get the voters out that the Democrats need to show up. That might be offset by the additional p*ssed off responsible people that vote.
guess we will take this hit too.
Are you kidding? All of the homeowners that acted responsibly will be LIVID.
In June, about 23% of mortgages were underwater. The majority of the underwater mortgages are in 5 states (NV: 68%, AZ: 50%, FL: 46%, MI:38%, CA:33%). It might help the Democrats in THOSE states, but it will hurt them everywhere else.
FYI: In 2000, about 70% of homeowners had a mortgage. 30% did not -- and those people (including me) will really be pissed.
Obama is being graded on a curve...compare his treatment by the press with that of George HW Bush during the Savings and Loan crisis.....they had NO MERCY on Bush about “The economy, stupid” and deficits......
Bush got no help from Greenspan until late in the game from too high interest rates......compared to Obama from Bernanke....
Yet the S&L crisis was over in a short time and Bill Clinton inherited an economy accelerating to over 4% GDP growth in 1993......
And look at how W Bush got treated over inheriting a Fed caused recession in 2001, when the unemployment rate was 3.8% and the Fed wanted it UP to 5%?????
I’ve taken all the economic hits possible..my patience has run out with these clowns!
I’m fighting mad and ready to rumble.
But a bailout for those sub-prime credit risk and a windfall of profit should they manage to hold on to their home for 5-10 years.
I'm also among that 30% -- and as I found when paying for my kid's college -- saving and financial prudence is punished in this country, not rewarded.
Time to break out the torches and pitchforks?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.