Posted on 04/15/2008 3:14:29 AM PDT by suspects
“Risky as hell.”
That’s how the Heritage Foundation’s David John describes U.S. Rep. Barney Frank’s mortgage bailout program. He’s an economist who takes the consequences of this taxpayer-backed bailout seriously.
Unlike, oddly enough, Frank himself.
The Hill recently quoted Frank as saying it’s “irrelevant” how many people are actually helped by his $300 billion plan. “I would hope a million would benefit. There’s no downside. Why not try?”
Only a Bay State pol could hand out $300 billion in taxpayer promissory notes and then say “What’s the downside?” It’s like Tip O’Neill getting the go-ahead on the Big Dig and asking, “What could possibly go wrong?”
Well, at least Barney’s bailout won’t get anybody killed. Probably.
Frank’s proposal is that bad borrowers should have their bad loans written down by irresponsible lenders to 85 percent of the current value of their home. The borrower - you know, the guy who showed lousy judgment and had to default in the first place - will then borrow 90 percent of the home’s value.
The problem is that the lousier risk you are, the more likely the person holding your loan will be to stick you in the government-backed program. Remember, these loans aren’t being written down by 85 percent - the lenders are agreeing to eat everything they’re owed down to 85 percent of the home’s current value.
So let’s say that Steve and Sue bought a $500,000 house at the peak of the housing bubble. They padded their financial resume, found an aggressive broker and got their subprime loan. Then the housing slide began, their plan to refinance using their equity went bust and now they’ve got a huge monthly payment on a house that’s worth just $400,000.
That’s bad enough. But under Frank’s plan, the lender would...
(Excerpt) Read more at bostonherald.com ...
Highly unfortunate choice of subtitle there.
A trillion dollars here, a trilliond dollars there, next thing you know, you are spending real money.
beware of anything from barney fag...that is... except if it is a boy prostitution ring run out of his basement, which he states he has no knowledge of!!!
Considering that it’s April 15th, I think it’s pefectly appropriate!
Beware Barney’s Bailout Bill (MA Congressman Sticks It To Responsible Homeowners)
Responsible homeowners are not the only ones he sticks it to.
Amazing. I’m surrounded by a sea of homes going into foreclosure. Homes populated by nitwits that dropped $40K to put that new SUV in the driveway, and spend $90 a week to keep the fuel tanks filled. The same folks camped out overnight on the storefront sidewalk in order to throw down several thousand dollars to purchase the very latest Playstation, MP3, and Cellphone techno gadgets. Their kids are enrolled in the free breakfast program at school, and free day care after school until 6:00pm. Every year their kids go to Disneyworld for spring break..yet I’m expected to pay for their health care and cover their losses because they thought they could jump into a $500K mortgage with an annual salary of $30K. To paraphrase Mr. Clinton, Mr. Frank is saying “you shouldn’t have to choose between the toys you want and the house you need.” Screw ‘em.
lol! no kidding
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