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 ...
How about we just go back to the constitution as the law of the land? The president does not have the constitutional authority to do this. In fact, Obama should be impeached for subverting the constitution with all of his Marxist crap.
Remember in November!!
Rebellion is brewing!!
This was so predictable.
This is the danger with commie/fascist/socialist/progressive dummies. They try to pass off their hairbrain schemes. Then when all hell breaks loose, do they stop and say ok we better back out of this dead end street. NO, they see the brick wall and say lets floor it and see what happens.
We have communicated our wishes to those we elected and are our temporary "servants, by letter, fax, demonstrations, personal meetings, town hall meetings, emails and even in the Letters to the Editor columns in local newspapers but they turn a blind eye and a deaf ear to us. They behave as if in a trance and under orders by an unseen entity to do their bidding.
Since all reasonable and known means of communication is failing to penetrate the trance, then perhaps the time has come for Lady Guillotine to make her visit!
-PJ
Funded with the unspent ‘stimulus’ money no doubt. Where’s my tarbucket?
Would this not require the US Treasury to borrow $800bil...if not from the "economy", at least from the FED?
How does Fannie/Freddie actually clear their books?
Hell, does money even MEAN anything anymore?
“Since all reasonable and known means of communication is failing to penetrate the trance, then perhaps the time has come for Lady Guillotine to make her visit! “
It all makes me wonder just when was the moment that Thomas Jefferson, et. al, decided to take up arms. What a decision to make.
I pray we are not faced with that decision but it no longer makes any sense to ignore the possibility. That would be quite unwise IMHO.
Again, I’m way behind the times when it comes to loyal FReepers but still, it’s not something that really seemed possible to me.
Until now. :0/
To all those with these mortgages ...
Take the damn money [forgiven mortgage] - THEN “86” THE DEM MOTHERFU*KERS IN NOVEMBER ANYWAY !!!
SHOW THEM YOU CAN’T BE BOUGHT !!!
The interesting thing is that it’s full speed ahead 24/7 - I’m betting that there are meetings 24/7 with the purpose of implementing God knows what before it all comes out. On the other hand, the part that is know seems like enough to really piss people off.....but, each day more comes to the surface.
How our country got duped into elevating to the highest office a far leftist whose views are out of touch with those of the average citizen still perplexes, but if gains are made by Republicans and especially if they can take over the House or Senate - we can survive to November.
Now, I’m just wondering what the August surprise is going to be from Obama - whatever it is it’s going to cost us plenty.
“Hell, does money even MEAN anything anymore?”
Nope. That’s why they’re going after everything connected with gold with a vengeance.
November can’t come soon enough!!
Alan Keyes has more intelligence and patriotism in his left big toe than OblahMao could ever muster.
Whatever it takes to buy votes. “I hope he fails,” as Rush has said.
Nope,, happened in the Jimmy Carter years too. DeJa Vu.........
Wow. What are all of us who DIDN’T cash out our inflated “equity” going to say about that?
An estimated 15 million U.S. mortgages — one in five — are underwater with negative equity of some $800 billion.
What is in the circled part of the image? I can’t make it out.
All of us who kept up our mortgages can move into the line marked “sap.”
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Wow! This is really a knife in the back of those who have kept up on their mortgage payments.
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