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 ...
I believe he is going to do that one better. How about just suspending payrols for 1 year or maybe two or three or four?
” The end of contract law, along with the voiding of the foundations of democracy via judicial dictatorship is where we are. “
Exactly. Starting with GM.
What about those of us who just took out mortgages that haven’t yet been consumed by Fannie and Freddie? You know... us saps that waited until the obvious bubble burst (I waited for more than 10 years for this to happen). So now I get to pay for everyone else’s mistakes as well as having put my wishes on hold for more than a decade thinking that was the smart and proper way to go about things.
What a rube was I!
Where’s my cheese?!!!
Yep. As predicted by Miss "I won't have to worry about paying my mortgage no mo". Next, the gas station credit card forgiveness plan, and she'll be all set.
I fully support any state that wishes to leave the union.
That might win him the election (or not) but it would earn him the enduring hatred of the millions of voters who’ve sacrificed to do the right thing and live up to their word. Yeah, take my money to bail out someone who was LESS honorable and responsible. I’m sure many people would sooner cut a guy’s throat for that than look at him.
REPARATIONS
You have said the magic word!!!
REPARATIONS
You have said the magic word!!!
These people were O voters in the first place.
NINJAs.
No income
No job
No assets
So how many mortgage lenders and real estate brokers are going to fall to this ax? Zero hasn’t learned a thing. We, The People, have.
Time to take back America!!
We don’t need any more of Zero’s “help,” nor that of Harry Reid.
I warned my son years ago, that when Dems were in the White House, it was tax-and-spend, and somehow, they always managed to set up the perfect conditions for a war.
GR-R-R-rrrrrrr!
Zero acts as if the treasury department is his own private mint.
I thought vote buying was illegal? /s
God, we taxpayers are generous to a FAULT!!
/disgusted sarc
Your picture pretty much says it all. The Dems must be pretty slow if they don’t think this will backfire on them. Just a few numbers:
Homes paid off: 34%
Homes with morts above water: 50%
Homes with morts under water: 16%
The 25% number thrown around for under water homes only takes into account homes with mortgages. When you take into account the huge number of homes that are paid off (which be definiton can’t be under water) then it drops to 16% of homes.
Does Obama not understand that 84% of home owners are going to be hopping mad that they are expected to pay down the mortgages of 16% of Americans?
He also doesn’t consider that not all 16% of under water mortgage households want this bailout? A significant number are still able to make their payments each month (nothing has really changed except the value of their home on paper), and they may consider not selling the country down the road into economic bankruptcy more important than getting their piece of the Obama pie.
Overall, I think this has the potential to turn way more people against the Dems than they might pick up.
I don't think it's going to help him anyway, that's how bad off he is right now.
Okay, who told the president what comes after trillion?!
And with zero payroll costs, companies can afford to hire lots of people, so unemployment will go down, and corporate profits will skyrocket!
Brilliant!
Where is Kondratieff when you need him?
I do believe at first thought after reading this article, that only the fools that are currently Obamubjects will retain their idiotic adulation for the Soros Pimp, and sycophants this upcoming election.
I don’t think anybody but Obama himself will realize a “bump” out of this other than the taxpayers as they are bumped further into the debt hole from Hell.
That is quickly becoming the actual effect of his presidency.
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