Posted on 02/25/2009 9:32:57 AM PST by Oldeconomybuyer
Federal Reserve Chairman Ben Bernanke said Wednesday that the embattled housing market has crippled the economy, and at-risk homeowners need a bailout - even if they knew they couldn't afford their home in the first place.
"Some borrowers presumably knew what they were getting into," Bernanke said before the House Financial Services Committee. "But from a public policy point of view, the large amount of foreclosures are detrimental not just to the borrower and lender but to the broader system."
"In many of these situations we have to trade off the moral hazard issue against the greater good," he added.
Bernanke's comments come after President Obama unveiled a $75 billion plan Feb. 18 to help up to 9 million borrowers suffering from falling home prices and unaffordable monthly payments. Borrowers with little or no equity will be able to refinance their mortgages at the current market rate, and monthly payments will be reduced for at-risk borrowers.
Committee Chairman Barney Frank, D-Mass., said he supported the president's actions, and agreed with Bernanke that moral hazard needs to take a back seat for the time being.
But Bernanke said it is critical that government continue to regulate the markets so a repeat of the mortgage meltdown does not happen again.
(Excerpt) Read more at finance.yahoo.com ...
I bought three hummers, a Mercedes and Lamborghini on $50,000 per year salary...can I get some money PLEASE!
I want to know what kind of drugs Obama has slipped all these people
Sure puts out a message for our kids/grandkids!!!
Repeating the bad loans again won’t rescue us from the problem. I guess the stock market recognizes that..it is down again after a brief upward move on the anticipation that either Bernake or Zero might have shown some sense.
But we are busy sitting on the side lines..waiting for ultimate bargains..
What a bunch of IDIOTS!
“In many of these situations we have to trade off the moral hazard issue against the greater good,” he added,
“and that greater good will be defined by us, your betters.”
“These people”???
Hello, Bernanke and Paulson were Bush’s people! They were terrible even before Obama got elected.
Careful. This administration will try to “bailout” credit cards and student loans next. Oh yea, and you pay for it.
Reinflating the bubble is good. Allowing to burst is bad.< /s>
If I have my brain removed can I become a member of the Federal Reserve?
“we have to trade off the moral hazard issue against the greater good”
Ah Ben, another man of principles. And if you don’t agree with them...well, he’s got others. So “we” have to bail out the greedy and stupid because it’s for the greater good. HORSE PUCKY.
Paging Rick Santelli.
The dems feel your pain - they'll be sending a a check soon. They'll take the money from your idiot neighbor who chose to live within his means... he's got some extra.
Who’s going to bail out the tax payers?
Hyper-Inflation here we come!
Bush's communist does not even try to hide his marxist philosophy. No wonder Obama likes him too.
Bart: “Didn’t you wonder why you were getting checks for doing
absolutely nothing?”
Grampa Simpson: “I figured because the democrats were in power again.”
For the life of me, I can not believe that the majority of the population does not see through this! Are these people really that naive? Are the “poll” numbers really that far off?
Gosh, anyone with half a brain can find that this is the most corrupt group of Fascists to ever run this great Nation....Really, are Americans [that] stupid or just [plain] in denial?!
Gee....can’t wait till Geithner talks this p.m....or maybe it’ll be after the market closes...and will only affect TOMORROW’S market....this clan is driving a stake in the heart of America.
Instead of bailing them out they should issue pamphlets on how to survive under a bush in the river bed!
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