Posted on 02/24/2008 11:08:55 AM PST by Travis McGee
WASHINGTON — Over the last two decades, few industries have lobbied more ferociously or effectively than banks to get the government out of its business and to obtain freer rein for “financial innovation.” But as losses from bad mortgages and mortgage-backed securities climb past $200 billion, talk among banking executives for an epic government rescue plan is suddenly coming into fashion. A confidential proposal that Bank of America circulated to members of Congress this month provides a stunning glimpse of how quickly the industry has reversed its laissez-faire disdain for second-guessing by the government — now that it is in trouble. The proposal warns that up to $739 billion in mortgages are at “moderate to high risk” of defaulting over the next five years and that millions of families could lose their homes. To prevent that, Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates. “We believe that any intervention by the federal government will be acceptable only if it is not perceived as a bailout of the bond market,” the financial institution noted. In practice, taxpayers would almost certainly view such a move as a bailout.
(Excerpt) Read more at nytimes.com ...
In addition, I’ve discovered the truth of what a lawyer advised me - the law says whatever a judge feels like it says when you go to court.
Many states make eviction nearly impossible. The HOA often lacks the money to pursue it in court, and may find their legal contract isn’t worth squat all compared to a sob story.
The HOA im my Mom’s old neighborhood tried to enforce rules like, “no parking cars in your yard”, only to lose as often as they won. The man across the street from my Mom had 3 cars parked on blocks in his front yard for several years, and the courts backed HIM, not the HOA!
Good to know, thanks.
“We’re not about to go into a situation where (real estate) prices will go down. There is no evidence home prices are going to collapse.”~~Alan Greenspan, May 21, 2006
Alan Greenspan - PING!
I know as a capitalist I think people should pay their debts and take the licking their actions give them, to including the licking banks should take for making these financially risky loans and using those risky investment vehicles, but if we don’t do something now about this then we may be facing a depression that makes the 1930’s look tame.
It’s the “do something” that is problematic. What? You can’t undo the iceberg hit under the waterline.
No, but you can look to abandon ship ASAP and ensure as many people survive as possible. The ship is DITW and will sink.
Yep, that’s all you can do at this time.
NOW he tells us!!!!
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