Hey Presidential Jackass, I’ve gone without to pay my mortgage. Where’s my pony?
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
No longer any incentive for personal debt responsibility.
>> to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth
Too bad he can’t bail out the Presidency.
There’s a couple of complications with this idea:
1. Who is holding $1.2T of RMBS paper, including a whackin’ huge amount of Fannie/Freddie paper?
The Federal Reserve.
Forgiving a big chunk of the principle of the debtors’ debt means re-negotiating or re-valuing the RMBS paper. Suddenly, the value of the RMBS paper has to go down. Well, for the Fed, this is a BIG deal - they’re holding so much of this paper, you’d see the Fed take a huge loss literally overnight.
Who is going to make good on that? Well, the Treasury would have to if they’re going to keep the Fed whole and believable. So we can bet that there’s going to be a bailout for the Fed, at the very least.
2. This is probably going to be yet another gift to the banksters on Wall Street, as those banks that hold RMBS paper have been having to write down the impaired value of the RMBS agency bonds on which there have been significant defaults. They’re going to squawk about the drop in the value of RMBS, and articulate some sort of veiled threat like “Oh, if you’re going to do this without making good on those bonds, the only smart thing to do is sell the paper ASAP, which is going to effectively raise mortgage rates, literally overnight.
Well, we can bet our hangie-down parts that ain’t going to happen, so obviously there has to be a backstop in order to keep banksters from selling their RMBS in a fat hurry - in fact, I’d bet that if this trial balloon is real, calls have been made to Wall Street banksters to reassure them that the Treasury needs them to keep holding that paper, and yes, there will be a nice bailout for them in due course.
So now it’s not just the dream of “everyone deserves to own a home” but now the government, by way of your and my taxes, are going to literally buy it for them?
Stunned doesn’t do my reaction justice.
Obama also talked about forgiving student loan debt, by either wiping many loans over 10 years old clean and/or allowing their discharge in bankruptcy.
Not good.
well, If 20% of the morgages are forgiven, then the other 80% needs to revolt and stop paying their morgages,remove all cash out of the banks and claim 20 dependants on your
w-2 form.
Doesn’t matter if they do it or not. If they cannot get the UN/underemployed number down under 15% they are toast no matter what gimmicks they pull.
But....but...I thought Bush’s policies were so bad, and were to blame for our current mess? So now, continuing them, ten-fold, will fix the problem?
I’m confused....
Life's not fair, and if you have lost your job and can't afford your mortgage, then rent. Why should other hard working Americans always bail out those who lose out? Why should someone keep their home when they cannot pay what they promised they would? Why should banks, and ultimately US, have to take it on the chin for someone else's misfortune? Don't we already provide enough help so that people aren't dying of starvation in the streets?
We are far from rich, but we honor our commitments and we worked very, very hard to be where we are today. We will be the ones who are called on to give even more so that everyone will be equally poor and dependent on the government - just like they want us to be.
What will tell the tale about the survival of the US as we’ve known it is if there are more people who will vote themselves money out of the “government” treasury or more who will not. If a majority will it’s over.
Personally I think it’s over, we are on the downhill run, past the point of no return, and gaining speed.
I don’t see this as a “surprise” that will work.
The people who will get this bailout were never planning to vote in November anyway, and this won’t make them turn out at the polls.
If anything, it’ll backfire because it’ll make those of us who are continuing to pay our mortgages even angrier (and we’re the ones who will vote in November).
Hmmmm.....since Fannie and Freddie have no funds to actually use to do this, it’s going to add to the deficit, big time.
Doesn’t something like this need to go through Congress?
If this happens, all of us will be paying down mortgages that have nothing directly to do with us - only it will be a tax.
We are so screwed.
This latest blatantly political move is proof that Democrats are born either without a brain or a conscience. Or most likely both.
U.S. President Barack Obama greets workers during his visit to the Ford Motor Company Chicago Assembly Plant August 5, 2010. Obama used the visit to highlight the turnaround in the U.S. motor vehicle manufacturing sector in the past year. REUTERS/Jason Reed
So our deficit is about to surpass our GDP and we're going to do another bailout? Of course. Must be an election on the horizon.Would the forgiven portion of the mortgage debt be considered taxable income by the IRS?
What about all the people who’ve taken major losses, walked away from mortgages, gone through short sales often paying large deductibles to banks in the process with underwater mortgages since about 1990 which was the first time in the modern era when people lost money on houses?