Just asking. McClatchy covers Timmy's newest improvisation:
The Obama administration unveiled new programs Thursday designed to make it easier for homeowners who owe far more than their houses are now worth to sell those homes at a loss and have their remaining debt forgiven.
Remember HOLC? Cleaned up the banks' balance sheets? Kept people in their homes? Turned a profit by the end of its life? Apparently, programs like that are off the table. Why?
I think it's ideological. The administration -- controlled as it is by the Finance Wing of the Democratic Party -- cannot, perhaps must not, see, let alone admit, that the health of the banks and the health of households are two sides of the same coin. That's Elizabeth Warren's idea, and Versailles, working through NPR, has determined that's not part of polite discourse. And that idea -- which, based on past performance, is reality-based -- was at the basis of HOLC as a policy success.
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Bad banksters can benefit from Fed aid' bad "little people" NO!
This plan is just plain crazy. If the debt is going to be forgiven, why not lower the mortgage amount correspondingly, then let the homeowner continue to own the home and live there?
Is it bcz "little people" must be punished for not "making it" financially, while Bankster Boiz can make all the mistakes they can, can destroy economies and financial systems, but get out basically whole if not better?
The FKD Party and its leader...Grrrrrr.
More cynisim needed
Jawbone asked:
If people stay in their homes, then how will the money class and their agents buy real estate at rock bottom prices to earn big money on when the market turns around? ;-)
That's why you'll get a band-aid like this to distract from the transfer of wealth from below to above that happens during such crises.
Just plain foreclosing on the masses is too obvious. Things like this given the illusion of helping but preserve the benefits to the money classes.
bingo
If people stay in their homes, then how will the money class and their agents buy real estate at rock bottom prices to earn big money on when the market turns around?
that same thing happens here in florida after every hurricane. if you were living in a desireable area and the hurricane smashes your house, there's a good chance you won't be able to afford to rebuild [and the property insurance companies are as bad as the health insurance companies about denying claims]. and if you can't afford to rebuild, probably others in the same socio-economic class can't afford to buy your property from you and rebuild either. enter the vultures who can afford to buy lots of pieces of property for a pittance and wait until prices go up again [or even artificially drive them up].