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 ...
All of us who kept up our mortgages can move into the line marked “sap.”
Also: “payor”, “donator”, “benefactor”, “chump”, “fool”
From a human standpoint I just cannot condone torture. And I guess I should have expected such a reaction from having posted what I did.
It’s just that things seem to be repeating history and I dabbled in a little too much speculation in what should be a political solution to things.
I regret my post.
“There is currently only help for those that have missed payments. I would just like to refinance at a lower interest rate.”
And if the rumors are true, this isn’t even about refinancing.
This is about forgiving principal.
There are also a certain number who know that this kind of thing is evil, and wrong, and bad for the country, but who will take advantage of it if it’s available, yet still vote against the regime.
Don’t; it’s a valid point.
I probably should regret my response, but I don’t.
The absolute injustice of the “rules are for you but not me”/authoritarian-styled regime we call government is horrifying; and it’s all the more terrible that they are spreading and ACTIVELY promoting injustices (like the Phil. Voter Intimidation case)... the founders put it this way “all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.”
Maybe I’m really weak for finding things to be unbearable; but if so, it is a personal failing.
Hmmm...my assumption based on what was written was that this would apply only to loans owned by fannie and freddie and not to the packages of bundled mortgages that they guaranteed. If it does extend to that level, the Katy bar the door. The government will be printing [many more] boatloads of money or fannie and freddie and the participating banks’ balance sheets are going to die a miserable death.
All I can say is if he has the “cajones” to do this and not the other things that need to be done, the voters will go nuts.
My car payment is upside down, do I get a bailout?
My house isn’t, because I followed the rules, read the contracts, and didn’t buy more house than I could afford...and for that...for doing the right thing...I get NOTHING.
FUBO
Well, I didn’t hammer you for your reply because I invited it. And I invited it because, at some point, even reasonable adults have to start coming to grips with what could become a violent situation and exactly where one stands in that case.
The way things are going, maybe just for the moment, the future looks more violent to me than not. Being disabled I am not one to be very effective in combat. But I still have strong - I believe patriotic - feelings about this country and I would fight to defend it. My family would, too.
What would a new American Revolution actually look like?
It seems we have reached the point where it is time to wonder... many Good FReepers have already discussed this at length but some of us “optimists” need to get real before it’s too late.
So, I still don’t condone torture my FRiend.
But civil war happens.
What would ours look like?
God help us.
Where is my cut? I should have bought a mansion!
Yeah, got carried away there....FRANK Santelli.
“how many of you want to pay for your bigger more expensive neighbor’s house” Santelli
All those who paid for their house (both democrat and Republican voters) - or paid their monthly rent on time - will be furious. "Some animals are more worthy than others."
Even worse, those who did the right thing will get stuck paying the mortgage's for those who didn't - both democrat and Republican voters will pay big time - for nothing!
OR one last screwing to America. They know what November brings.
You think this will drive the market up?
Although large and increasing, the group of people who would benefit from this move would not be large enough to help in the elections. Far more would be disgusted by (1) the unfairness of it, (2) the fiscal irresponsibility of it, and (3) the cynicism.
Am I missing something?
“All of us who kept up our mortgages can move into the line marked “sap.”
Then, there are those “saps,” who sacrificed all in order to pay off their mortgages, to only realize a 41% loss of value in their paid off home. All thanks to these corrupt bass turds. May they all rot in hell for the damage they have done to all our futures.
Now if they were to say, "We'll forgive your principal to current value plus $10,000" or something like, "We'll forgive your principal to current value, but we get a percentage of any future equity..." I'd consider it.
I don't trust any of these f***tards. There's probably some slave agreement/ reparations language in microprint on any document you'd sign.
I’m no financial expert but it seems that, in a situation like yours, you don’t really care how underwater you are until you go to sell it.
If you want to sell soon, bad.
If you want to live there and see what the future brings I don’t think *anyone* knows what your house will be worth five years from now.
We are just living in our house for the foreseeable, long-term future.
We hope.
Clearly unconstitutional because Obastard would be essentially spending taxpayer money without authorization.
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