But wait -- it isn't here yet. And it need not come at all, if we approach this crisis with some sense. Look at the facts NPR found:
There are about 51 million first mortgages in the United States right now — but only about 1.4 million of them are either referred for foreclosure or in foreclosure, said Mortgage Bankers Association chief economist Jay Brinkmann. In other words, fewer than 3 percent of American homes with mortgages are in foreclosure.
Hillary was right about the lack of a crisis in Social Security. I'm not sure she's right about the looming crisis in the mortgage markets.
Two things need to happen. The bankers and lenders and analysts who created this nightmarish scenario need to be made to pay the piper for the years of high-flying thievery they've enjoyed -- and the bankruptcy judges need to step in, fast and hard, and stop the foreclosures.
The resulting revaluation of everything will mean that far fewer people are able to maintain the delusion of riches they don't actually have, but in the long run they'll be better off. More importantly, the taxpayers won't have to bail out ANYBODY.
It will destroy the credibility of the Helicopter Ben brigade, but that can't be anything but good for the country in the long run either.
- Sarah's blog
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What else Hillary said
From your same TL link:
The bold is original and the asterisks are my additional highlighting. It seems clear the Hillary puts the borrowers first and the lenders (i.e. those who will get the $700 billion) second. Hillary has been trying to take care of homeowners for some time now and what she is saying is that we need to address the borrower's issues first. A muted call for hesitation on throwing money at the lenders, IMO. Politically, this could prevent the entire bailout bill from going forward and put the particular HOLC proposal on a path to a bill of its own.
+100
Yes, I like that talking point, not least because I think it's true:
Hillary, of all of them, seems to be integrating her policy prescriptions with a systemic perspective.
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi
I don't see that the bankruptcy court judges are a solution
First, they're oneseis and twosies. Second, people will be reluctant to participate. Third, they don't solve the asset valuation problem.
The quotes don't contradict; present apples (NPR, cough, from the Mortgage Bankers Association, cough) vs. future oranges (ARM rates up in the next three years). I agree that the numbers should be right, but these numbers are not in conflict, though my reading of the post says it claims they are.
[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.
"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi
Several Problem with Bankruptcy Judges
Remember these are federal judges, so lots of Bush appointees. How come I have to vote for Obama to protect myself from GOP appointees, but it's perfectly okay to trust them to deal fairly with home owners.
Second, it leads to a patchwork of solutions and what one person gets another might not.
Third, it requires going into bankruptcy before you can get anything fixed. So, essentially, you wait until the person has already drowned.
Fourth, most of these people are not going to be able to afford lawyers. A lot of banks will be able to. If there are legal arguments to be made or appeals taken, then the home owners are going to be very quickly out of their depth. Of course, I'm sure there are lawyers who will represent them for a cut, but why give sharks another bite at these people.
Of course any federal agency can be compromised by mismangement (HOLC), but at least it stands a chance of working. One additional suggestion is to limit the number of political appointees. What you don't want is a smaller version of DHS.
"Do what you feel in your heart to be right -- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't. " - Eleanor Roosevelt
Your preaching to the choir, Lambert.
I love this job!
I love this job!
Help! Link Wanted on Banks
A few days ago someone posted a link that let you check out the solvency of your bank. I cannot find that comment. Does anyone have that link (to either the comment or the bank solvency site)?
"Do what you feel in your heart to be right -- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't. " - Eleanor Roosevelt
No, what I'm saying is Hillary's idea
that we should step in now on behalf of the borrowers IS the fix.
The easiest way to do this is in the bankruptcy courts. The exact procedure, I cannot outline as I know not how those courts function (I've testified in criminal cases, been called on a criminal jury, and been sued for divorce. What I know of the workings of bankruptcy / other civil courts amounts to not much, OK?) particularly in states other than Texas.
Oddly, Texas is NOT one of the states with the highest default rates.
The moneychangers just need their tables overturned. I don't want them to get my tax money to bail them out. They don't need it.
People in NOLa and South Texas and along the flood zones in the Dakotas, Illiniois (three blocks over from my house, where two weeks ago an 8'' rain caused flooding) -- people who live and work in places the fedgov hasn't got highly-influential infestment bankers collocated, them I can see helping.
Flood zone, hurricane zone, people being forced out of their homes by crooked investment deals -- these are things a government has an obligation to help solve, for the benefit of the people who consent to its governance.
Infestment bankers? No. They wanted the returns, so they took the risks. Let them pay the pipers now.
We can admit that we’re killers … but we’re not going to kill today. That’s all it takes! ~ Captain James T. Kirk, Stardate 3193.0
1 John 4:18
some states tho--like FL--have diff laws
you can't lose your house in FL even if you declare bankruptcy, but in other states you can.
And declaring Bankruptcy overall is much much less a good option for most people--thanks to Biden.
I think what Hillary wants refi'd is the homes with
ARMs where the interest is jumping astronomically - put those people in mortgages with fixed interest rates BEFORE they get in trouble. There are a lot of ARMs where the rate doubles from 6% to 12%. On $500k mortgage, that's a huge increase.
It would be nice if the so-called leader of the Democratic party would act like a Democrat for a while.
"Someone needs to point out that elephants produce infinitely more shit than donkeys." Brad Mays