Posted on 10/02/2008 8:32:22 PM PDT by Lurker
Senator Joseph Biden: "Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe."
Folks this is a prescription for absolute chaos in the housing market. This fool wants to give Bankruptcy Judges the power to decide what houses are worth.
That's what he's saying here. You and a lender agree at the start of your loan that your house is worth, let's say, $100,000 dollars. Then you decide for whatever reason you can't afford the payments, so you petition a Federal Judge to not only lower the interest rate you freely agreed to, but the actual value of the house you bought!
With the stroke of a Judicial pen, your $200,000 house is now worth...well it's worth whatever your lawyer can convince a Bankruptcy Judge it's worth.
Maybe it's worth 175K. Maybe it's worth 50K.
What bank on the planet is going to ever write another mortgage again knowing that the entire deal can be re-written at the whim of an unelected, serves on the Bench FOR LIFE Judge?
In a rational world this election would be over.
But given the political climate we live in today, this will be heralded as a bold move in favor of the downtrodden masses.
May God help the United States....
L
(Excerpt) Read more at edition.cnn.com ...
This abrogation of contracts is patently illegal. Biden should have been called on this outrageous idea.
Should have but won’t. Not even FoxNews is mentioning this.
Yes, that’s what I was thinking. A nation that no longer abides by contracts is washed up. Finished. Kaput.
That really gave me a start, too, although I don’t know if the average viewer would realize how extreme the suggestion was.
My husband was apoplectic when he heard Biden say that!
susie
How many contracts do you think were abrogated by the new bankruptcy laws?
Does anyone want to guess how the lawyers groups feel about this?
Let the wonks get into the transcripts over the weekend and it’ll most likely come out...and highlighted...and pounded.
Hume missed it. That idiot Kristol missed it. Hell even Krauthammer missed it.
I guess getting to that earth shattering Luntz 'focus group' waste of meat was far more important than actually analyzing what Biden said.
We are so screwed....
L
Good point... What planet do these Democrats live on?
Idiots... as my tagline notes.
Nobody heard a word the frigging idiot said. He was like the voice of the teacher in “A Charlie Brown Christmas”
I almost choked when I heard that! What about the botox!
He didn’t have wrinkle and his eyes were turned up on the edges. The Chia Pet frozen in time!
The way he worded it .... no one could tell this is what he was talking about. He worded it as though banks could freely decide to reduce the interest rate and/or loan amount with the borrower ... a position I would support. But that is NOT what he meant.
The average person listening would say “Gee that sounds fair, banks ought to be ‘allowed’ to lower the principal balance if they want to.”
We must get the word out about the deceptive language Biden used in this.
“but be able to adjust the principal that you owe, the principal that you owe.””
I’m really glad you brought that up. Good grief! Where’s my reward for paying off my house at 12% in the 80’s and 90’s????
Do I get a refund of the principal?
IT’s all about rewarding stupidity and laziness. INSANE!
The way Biden worded it .... no one could tell this is what he was talking about. He worded it as though banks could freely decide to reduce the interest rate and/or loan amount with the borrower ... a position I would support. But that is NOT what he meant.
The average person listening would say “Gee that sounds fair, banks ought to be ‘allowed’ to lower the principal balance if they want to.”
We must get the word out about the deceptive language Biden used in this.
“Does anyone want to guess how the lawyers groups feel about this? “
That’s where most of these insane ideas originate.
NEVER VOTE FOR A LAWYER!
Take it to the next logical step. What does that do to the tax base in your community?
Your assessed valuations will be at the mercy of whatever a Federal judge says it is. There's go school funding, right out the window.
Tax Assessors across the country will be spending the rest of their lives in Court as property owners challenge their assessments.
These guys aren't merely stupid, they're frigging dangerous.
L
IIRC, this was in the original bill...the House Republicans stripped it along with the Acorn funding. A judge would have had to power to lower principle and adjust rates. Okay, I found an article that states that it was in there, but was taken out. And here’s the kicker, this WP story says Obama opposed that part, LOL.
“The main point of contention between Democrats and Republicans, Frank said, is a proposal to give bankruptcy judges new power to modify mortgages for homeowners, an idea that is widely viewed as a bargaining chip. Democratic presidential candidate Barack Obama (D-Ill.) has said the measure, which is fiercely opposed by the banking industry, should not be in the bill.”
http://voices.washingtonpost.com/livecoverage/2008/09/report_bailout_to_come_in_inst.html
“Nobody heard a word the frigging idiot said. He was like the voice of the teacher in “A Charlie Brown Christmas””
yep!
I was screaming at the TV at this suggestion....cannot believe Palin let it slide
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