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An August Surprise from Obama?
Reuters ^ | 8/5/2010 | James Pethokoukis

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 ...


TOPICS: Breaking News; Business/Economy; Crime/Corruption; Government; News/Current Events; Politics/Elections
KEYWORDS: bailouts; barackfriday; barneymae; bho44; bhofascism; bhosocialism; bloggersandpersonal; bribe; corruption; cwiiping; democratcorruption; democrats; doddymac; economy; electionfraud; elections; everythingisfree; fail; fanniefreddie; fanniemae; freddie; kenyanvillageidiot; maybealittlebl000000; mortgages; obama; porkulus; reparationsday; socialism; spreadthewealth; stealthewealth; stimulus; wealthtransfer; wewantjobs; zer0cojones
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To: Qbert

it won’t help the dems


61 posted on 08/05/2010 10:21:04 AM PDT by The Wizard (Madam President is my President now and in the future)
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To: cranked

“I still remember reports of a North Carolina woman asserting that “It’s like Christmas!” after the passage of IdiotCare.....if that was Christmas, I wonder what she would call this major redistribution of wealth stealth move by the AnnointedIdiot...../s =.=”

Not to mention the one Obamabot who was ecstatic because Obama’s “gonna put gas in my car; pay my mortgage”. Apparently, she was right...


62 posted on 08/05/2010 10:21:56 AM PDT by Qbert
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To: 2nd Bn, 11th Mar
Photobucket
63 posted on 08/05/2010 10:24:40 AM PDT by mojitojoe (When crisis becomes opportunity, crisis becomes the goal.)
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To: qwertyz

Um - a loan - even a bad one is still an asset on the bank’s books. Zeroing out an asset is bad for the balance sheet.


64 posted on 08/05/2010 10:25:21 AM PDT by SlayerOfBunnies (An Indian friend of mine wishes to remind everyone... Indians <> muslims)
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To: Qbert

Typical behavior of the federal government. Create a problem and then come riding in to the rescue.


65 posted on 08/05/2010 10:26:37 AM PDT by GSWarrior (I'm from the government and I'm here to change the climate.)
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To: Qbert

http://www.youtube.com/watch?v=P36x8rTb3jI

http://www.youtube.com/watch?v=19v5Kjmc8FI


66 posted on 08/05/2010 10:27:59 AM PDT by mojitojoe (When crisis becomes opportunity, crisis becomes the goal.)
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To: NormsRevenge
The FRench overthrew their gubamint for far less..

Eventually, the French way, might be our only option.

67 posted on 08/05/2010 10:28:43 AM PDT by varon (Allegiance to the constitution, always. Allegiance to a political party, never.)
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To: cranked
Looks like the President is getting ready to hand out some more pie to the hungry peoples....and guess who made that pie?

Not a smart move Mr. President....the blow back on this would be something fierce...and likely ensure a Republican controlled congress come November.....
68 posted on 08/05/2010 10:28:46 AM PDT by PigRigger (Donate to http://www.AdoptAPlatoon.org - The Troops have our front covered, let's guard their backs!)
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To: kittymyrib

Bingo, you got my sarcasm!


69 posted on 08/05/2010 10:29:04 AM PDT by Mouton
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To: Qbert
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.

I've searched for another independent source for this rumor posted on a blog at Reuters, and I haven't found one. Is anyone able to find such? There are a few blog postings derived from Mr. Pethokoukis's blogging, but none so far that stand on their own.

70 posted on 08/05/2010 10:30:34 AM PDT by snowsislander (In this election year, please ask your candidates if they support repeal of the 1968 GCA.)
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To: mojitojoe

Another Obama scam.

http://www.freerepublic.com/focus/f-news/2565063/posts


71 posted on 08/05/2010 10:33:06 AM PDT by Dubya-M-DeesWent2SyriaStupid!
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To: varon

“Eventually, the French way, might be our only option. “

Great minds, etc...

Given that we are truly in a minority-rule tyranny now I was wondering if our next “uprising” would be more like the French Revolution than the American.

Lady Guillotine speaks louder than words.


72 posted on 08/05/2010 10:33:17 AM PDT by paulycy (Demand Constitutionality: Marxism is Evil.)
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To: Qbert
And what of the people who pay their bills on time, or who are underwater but NOT going through Freddie and Fannie?

Bread and circuses, people. Just the first step.
73 posted on 08/05/2010 10:33:58 AM PDT by OCCASparky (Obama--Playing a West Wing fantasy in a '24' world.)
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To: Qbert
Wow (said sarcastically)...will it be a big success like the Simuli have been...zilch. Or "Cash for Clunkers"...?

This butthead is STILL out tossing taxpayer money around to attract the "moocher" class at the expense of our nation.

Given a choice, I would rather lose my house, than lose my country. In a real America, we can recover from losing a house...but once America is gone, it will be a cardboard box in obamaville.

And doing it right here before the elections is like a husband apologizing to his battered wife AFTER the judge sentences him to jail.

FUBO
74 posted on 08/05/2010 10:35:26 AM PDT by FrankR (It doesn't matter what they call us, only what we answer to....)
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To: Spok
If more irresponsible spending and more unsustainable debt gets enough votes for the Democrats to protect their congressional majorities, it will prove that America is irrevocably on the suicidal path to economic collapse.

Aw comon spok, can't ya givem just one more little chance?

75 posted on 08/05/2010 10:37:10 AM PDT by An Old Man
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To: Eaker; afnamvet; AK2KX; Ancesthntr; An Old Man; ApesForEvolution; aragorn; archy; ArmedSkeptic; ...
CWII Ping.

The end of contract law, along with the voiding of the foundations of democracy via judicial dictatorship is where we are. What comes next is the interesting question to ponder.


76 posted on 08/05/2010 10:39:45 AM PDT by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: Qbert

Right into the pockets of bankster investors who profited during the boom, and are being paid off in a bust.

When my investments go down, I don’t get paid off by the government.


77 posted on 08/05/2010 10:40:05 AM PDT by Atlas Sneezed (Anything worth doing, is worth doing badly at first.)
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To: Qbert

How do you suppose all those people who have lost their homes are going to like this??? I, for one, would be ticked.


78 posted on 08/05/2010 10:40:33 AM PDT by bamagirl1944 (That's short for Alabama, not Obama)
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To: Qbert
WTF?
79 posted on 08/05/2010 10:40:41 AM PDT by Red in Blue PA (Anti-Gunners suffer from Factose Intolerance)
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To: Spok

Probably the intent, via Cloward and Piven.


80 posted on 08/05/2010 10:42:59 AM PDT by DBrow
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