Posted on 08/05/2010 9:53:06 AM PDT by Qbert
Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.
The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. A few key points:
1) Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.
2) Wall Street banks are alerting their clients privately to this possibility. Here is what some are cautiously saying publicly. This from Goldman Sachs:
(Excerpt) Read more at blogs.reuters.com ...
After voiding our laws, Omoslem will start pushing Sharia Law with that gross freak Kagan.
He will pull it off, or something equivelent.
That is why I have been saying don’t expect too much from the elections.
It jess needed fixin
That is the pot that the Republican senators wanted to pay for the extended unemployment claims last week. Three RINO’s defected and it is now added to the national debt instead.
It's more than even what you present here: Only a portion of the 16% are mortgages held by fannie and freddie - most are conventional mortgages held by banks or other financers. And those are not eligible for the principal buy-down. He will advertising it as "helping millions of homeowners" but it will not - it will only help the same "affirmative action" slice of the pie that he's targeted all his government-help programs at. He's going to piss off far more homeowners than even what you present here.
If the democrats pull this hypothetical stunt, are we hard working, play by the rules, save and scape Americans going to complain or are we really going to get serious and I’m not talking about another tea party rally either.
Meanwhile, Jerrold Nadler (Blimp-NY) is floating a bill to tax all states that voted for Juan to have their Bush tax cuts expire. Nadler wants IRS to help in yet another income redistribution act.
Fanks! It DOES look better that way. ;o]
There’s more than one way to pay reparations............
That’s pretty stupid statement. I’d be willing to bet the farm that most of the “sweepstakes winners” are white middle class living life well past their means just like they see on stupid TV shows.
Hey Presidential Jackass, I’ve gone without to pay my mortgage. Where’s my pony?
Bingo. Everyone has lost value, whether they are underwater or not. Those who made down payments, took shorter-term mortgages, took normal mortgages, paid off their mortgages more aggressively, or simply refused to play the trade-up game of the Joneses to larger and more expensive homes, in other words the responsible homeowners, get nothing. Others get free cash. That is what this basically is.
What about those who are underwater because they did a cash-out refinancing? Or a greater than 100% loan?
I will say it again. We are watching Atlas Shrugged play out in real-time.
What exactly is the point of a mortgage? I mean, if for instance you buy a house, full payment, what is the point of having a mortgage unless you need a loan?
I am so f###### off right now with CA, AZ, judges, MO over in Spain with her mates spending millions of OUR money and then there is the likes of CBS,CNN,NBC, ABC, who are so bias in their reporting.
Now this crap to win an election while they get the illegals legal to get their votes for 2012
WTF is the GOP doing about all of this right now besides shutting up, I still can’t get it as to why the GOP does not tell the media that they’re doing a disservice to their viewers by lying and covering for their messiah
Um - a loan - even a bad one is still an asset on the bank’s books. Zeroing out an asset is bad for the balance sheet.
NOPE, with double entry accounting you would also zero out the liability, thus making your balance sheet stronger.
stupid us too
we have two older cars which hardly run but they’re paid off which we could afford
we bought a small house a few years ago and paid it off because it was what we could afford.
While we have others usually liberals who get the bigger home, nicer car to show off but then say they need help.
Screw it I’ll get rid of my little house for my family of 3 kids, wife, dog and I so we can buy a massive house and a great car and then let some other sucker pay for it just like MO over ion Spain having a great expensive vacation on OUR DIME while we do not go even to out to eat let alone have vacations
No longer any incentive for personal debt responsibility.
When the uproar begins he will find a way to blame Bush.
““A stealth 800 Billion dollar stimulus plan by executive order for the sole purpose of winning the November elections... “
—That is the pot that the Republican senators wanted to pay for the extended unemployment claims last week.”
This would be a *new* 800 Billion dollar addition to the debt.
Thanks for my new tag line!
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