Really, since when?
Posted on 02/07/2009 12:34:10 PM PST by NormsRevenge
WILLIAMSBURG, Virginia (Reuters) – Treasury Secretary Timothy Geithner on Saturday told lawmakers that financial institutions that receive government assistance will have to make loan modifications and meet other new standards, according to Democratic sources.
Geithner, during a briefing with House of Representatives' Democrats, was asked about a New York Times report that the Obama administration would not require banks to increase their lending as part of revamped government effort to restore stability to the financial industry.
According to the sources, who asked not to be identified, Geithner said: "We are not doing what they wrote ... Institutions that get assistance will have to participate in loan modifications and meet other standards that we set."
"Public assistance is a privilege, not a right," the sources said Geithner told lawmakers.
The sources said Geithner told the lawmakers that fixing the banking system. "It is going to take time for it to work but it will work," he said, according to the sources.
Geithner on Monday will unveil the Obama administration's plans for dealing with an ongoing credit crisis and outline how it will spend what remains in a $700 billion financial bailout fund approved by Congress in the fall.
The Democratic sources did not indicate that Geithner provided any specifics on that plan during his meeting with House Democrats attending an annual retreat. Besides answering questions on how the administration will battle the crisis, the session was a chance for lawmakers to get an opportunity to get to know the new Treasury secretary better, source said.
(Excerpt) Read more at news.yahoo.com ...
Do you feel the same way about all the bogus warrants written by AIG and the other bogus credit default swaps they have all defaulted on. By you definition, we were in a third world country the day Paulson asked for the first bailout funds.
Really, since when?
Add to this the problem of second liens where the second-lien holder holds paper worth zero, yet can hold up restructuring by the first lien holder.
When Timmy-boy comes up with a plan that addresses these issues, then the financial markets might quit laughing at his ineptitude.
The same can be said of everyone that files for bankruptcy. We have a way of dealing with that, we just put a blotch on your credit report for ten years.
Too bad they won't do that for the renegiotiators, but the creditors can keep it in place for seven years under current law.
Democrat politicians leaning on banks to loosen their lending practices is what got us into this mess in the first place.
Public assistance is a privilege, not a right," the sources said Geithner told lawmakers.
And this is EXACTLY what caused the mess...democrat politicians forcing banks to give out public assistance to people who couldn't afford homes in the form of high risk loans. What hypocrites democrats are...so they will force banks to give out public assistance while saying they are against public assistance...to the banks. Criminal.
“The same can be said of everyone that files for bankruptcy”
I don’t believe in bankruptcy either, bring back debtor prisons!
I want to know
what is the model?
what legislation or regulation was similiar to this that was successful?
They just make stuff without examining what was successful before.
there is no chance any of this is helpful. I am not sure if the rats are stupid or evil.
Wanna bet on it?
Even the Framers believed in bankruptcy. It’s not a get-out-of-jail-free card, you know. You lose -big time- under bankruptcy.
Do you understand math ? If you do, tell me how a fractional reserve banking system works over a number of years.
Hint: increase in money supply, is it sustainable ?
Ergo, once you understand, bankruptcy is a necessity.
I totally understand the banking system and that has nothing to do with people not paying their obligations in full.
I still believe that bankruptcy should never be allowed under any condition!
Nothing but food until your debt is paid.
Problem #1: what if the gov't, having bought what it considers a controlling interest in the bank, decides to cut itself into the contract? Say half a percent to Uncle Sam as - let's call it a carrying charge...
Problem #2: is this contract enforcible? This is NOT what the mortgagee agreed on when he signed the original contract.
I’m beginning to realize this. I called Countrywide in response to daily phone recording telling me that I could get my loan modified and found out the only way to qualify for loan modification is if you’re going through financial hardship and can’t make the loan payments. I asked if I stopped paying my loan would I qualify and they said yes. I then asked if it would affect my credit to have the loan modified and I couldn’t get a straight answer out of them.
Yay, let’s have debt slavery !
Tell me, if you understand lending, what is an interest rate ? What’s its purpose ?
It has 2 - the first is a payment on the time value of the money. AND the second is... ding ding ding ... a valuation on RISK !
Yes, risk !
And what would that risk be for ? Why, I do believe it is for the risk of default ! Yes, in the history of the world, borrowers across the ages have run into problems with payments.
And then, oh august one, why do some loans, like mortgages, have lower interest rates than consumer loans ?
Ding ding ding, yes, that’s the price of, dare I say it, RISK !
If you don’t want risk, loan only recourse loans.
And there you have it.
Unless your name is Guido and you have guys who will break kneecaps on command.
Having had to avail myself of the provisions of that law after a ruinous custody battle for my kids, I'm glad that you were not one of the Founding Fathers who abhored the notion of debtor's prison.
I made sure the butcher, the baker, and the candlestick maker were all paid, the only ones stiffed were the lawyers and other assorted vultures that conspired to steal my dignity as I tried to rescue my children from having a convicted child rapist as their new stepfather.
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