Posted on 08/05/2010 9:53:06 AM PDT by Qbert
Attempting to raise money?
>> 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.
Rather than forgive part of the debt, maybe the will assume it and part ownership in all those homes. Who knows what they could require as part owners of your home.
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.
After you read the following, you can send the deed to your farm to my P.O. box.
most of us have our mortgages held by banks or other such lenders.
But what you don’t know is that most of the mortgages held by banks and other such lenders are all backed by Fannie or Freddie.
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....
The Muslim-bowing illegal-alien-enabler will now be giving away free home-equity to those who didn’t work for it.
I believe this is part of that “spreadin’ the wealth around”. There’s a name for that.... it’s called “Communism”.
“well, If 20% of the morgages are forgiven, then the other 80% needs to ...claim 20 dependants on your w-2 form.”
LOL
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).
The responsible ones aren't his "base", so who cares about them. Anyone who's been responsible are, in his mind, part of the "evil rich" who need to be taxed more.
Here is a link. Fannie, Freddie and Ginne Mae guarantee 95% of all the mortgages in this country. Doesn’t matter where you got the loan or who is servicing it. It is probably backed by the US Govt. They did this to take the risks from loaning off the banks etc. It worked. It was the main reason for the subprime crisis.
So your 16% number doesn’t cut it at all.
http://articles.moneycentral.msn.com/Investing/JubaksJournal/fannie-and-freddie-must-die.aspx
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