405 pages of pork to choke a glutton. The best and brightest doing their best and brightest work. Let's cut through the crap.Problem: Lenders are losing money on bad loans and their financially engineered offspring.
Solution: The Fed will buy those loans for a price that is higher than the banks are currently losing money on. The Fed will make money with this plan.
Analysis: Uhhhh yeah. Any questions?
31 comments:
First the Fed will have to print money.
A lot of money.
I still can't get over the fact that they pulled the number out of their butts. They picked $700Bil because it was "a really large number". No logical justification, no rhyme or reason, just pick a big number and go with it.
Scary.
How are they going to make money on paper which has no clear title to any underlying asset?
Yeah, that's right - homeowners have already successfully stopped foreclosure by successfully arguing their loan had been chopped up and resold to the point no one has clear title to foreclose.
This isn't like the old RTC, where the Feds had physical assets to sell.
All they've got here is paper where they hope enough borrowers keep paying to get some sort of a return.
WASHINGTON, DC—Congressman Elton Gallegly (R-Ventura & Santa Barbara Counties) issued this statement today after voting against the Economic Stabilization Act for the second time:
“There is no doubt our economy faces a crisis. To resolve it, we need a solution that addresses the core reasons for the crisis. As I have said repeatedly, while I do not like government intervention, if we are to intervene, we must do so correctly. I believe this bill is fundamentally flawed and Congress should stay in Washington and not leave until we get the right solution.
“The bill the House considered today is virtually identical to the one which the House rejected Monday, except that the Senate added numerous provisions that will not help the credit crunch facing our nation. Some of these provisions can only be defined as pork at its worst. In the midst of a crisis, how can we justify special interest tax breaks of $192 million aimed at Puerto Rican rum, $148 million for wool fabric producers, $100 million for race track owners, $2 million for kids’ practice arrow makers, and $33 million to American Samoa, which benefits Star-Kist Tuna in Speaker Pelosi’s district?
“The underlying reason for our economic problem is that people are in homes they can’t afford and for which they never should have qualified. The roots of this go back to previous Administrations, when lenders were told they had to make loans to individuals who could not afford them. This was only compounded by tens of thousands of people, including illegal immigrants, who were given loans without proper scrutiny and often put no money down and made few payments, if any at all. Add to that greedy Wall Street scoundrels, unscrupulous mortgage brokers, and an ocean of consumer debt and it is easier to understand how we got into this mess.
“None of these problems have been addressed in this bill. With the passage of this flawed bill today, it is even more important that we aggressively make the necessary changes to end these policies and ensure this never happens again. I fully intend to focus my energy on that.”
###
Spare change...spare change...you, sir, do you have $7 billion dollars? I only need it for a few minutes....
If the fed were to print 10 x $100 sheets on a printer that printed 100 pages per minute, it would still take 13.31 years to print $700 billion.
So, Robbo, how does it feel to be bailing out fraudster-criminals like myself? All while the value of your house plummets too! ;-)
As for me, I cleared almost $250K in cashback-at-close, committed well over $2 million in blatant fraud, haven't paid taxes in years, defaulted on another $150K in credit card debt, and am coming up against the limit of my $50K corporate card? It's all good, though, since I'm using your money to fund my lifestyle. Sweet!! :-)
Call your local DA when you get a chance...
"(CNN) A 90-year-old Akron, Ohio, woman who shot herself as sheriff's deputies tried to evict her from her foreclosed home became a symbol of the nation's home mortgage crisis Friday. ... In 2004, Polk took out a 30-year, 6.375 percent mortgage for $45,620 with a Countrywide Home Loan office in Cuyahoga Falls, Ohio. The same day, she also took out an $11,380 line of credit. Over the next couple of years Polk missed payments on the 101-year-old home, which she and her late husband purchased in 1970. In 2007, Fannie Mae assumed the mortgage and later filed for foreclosure."
Casey Serin said...
So, Robbo, how does it feel to be bailing out fraudster-criminals like myself? All while the value of your house plummets too! ;-)
You suck, Benoit.
(OT) Craigslist watch. Really desperate seller. (Sorry, caps in original)
SELLER WILL FINANCE
EXECUTIVE CLASS HOME
SCOTTSDALE, ARIZONA
99% FINANCING @ 6.49%
$659,000.00
ONLY 1 % DOWN
"Seller will FINANCE the 99% of the purchase price of the property. ONLY approx. $ 6,590 needed to OWN this property!!! You take Title, so You get all the tax deductions!! Interest Rate FIXED @ 6.49% on a Interest Only 3 Year Balloon. (or 6.25% Fully Amortizing) NO PMI ! $3,958 is your Total Payment, including Taxes and Dwelling Insurance. $3,528 Interest Only Pmt + $ 430 Escrow = $ 3,958 Total Pmt !!! NO Employment or Asset Documentation Required !! Bad Credit or Recent Foreclosures APPROVED!! SUPER EASY LOAN! You want it, You OWN IT!!"
http://www.geocities.com/NESTLINGWAY7599/
overyourshoulder said...
Casey Serin said...
So, Robbo, how does it feel to be bailing out fraudster-criminals like myself? All while the value of your house plummets too! ;-)
You suck, Benoit.
Is that a comma or a typo?
It's OK pleather - they've now forgiven her and given her the house free and clear - poor grey haired ickle old thing. I think I hear the sound of shotguns being cocked all over the inland empire.
I hope the old lady survived, but I suspect there will be some blood shed somewhere before this is all over, sad as that scenario is.
These fools. All I wanted was for them to throw a satellite dish and the NFL package for every household into the damn bill.
So... In the two bank foreclosure/repossession lawsuits that have walked into my office in the past year, the bank had the records so effed up that we agreed to take the defendant's side on a contingency basis, and filed a counterclaim against the bank at no charge to the "defendant," on the well-informed belief that the bank's violation of various laws and duties was more valuable than the bank's claim for breach of the loan agreement.
On another note, do NOT update your Apple TV to 2.2. It will turn into a brick... Ask me how I know!
buzzsaw99 wuz here beotches!!
I have a good friend in Regina, Canada. She tells me there are two commercials about California running on TV:
1) Come live and work in CA
2) Come visit CA
Have we run out of illegals from Mexico that we now have to look to the north?
OT, but some weeks ago someone hinted that "Fast Volvo" is an oxymoron...
Paul Newman and fast Volvos
The high-pressure turbo 5-cylinder Volvos (850, S60, S70, C70, and S40) are pretty potent, as is the XC90 V8.
Volvo's twin-turbo six (in the S80 T6 and the earlier XC90s) was also quick, but the transmission it's paired with isn't strong enough to handle the output, so it's a reliability nightmare.
Looks like they've fixed the bug with Apple TV 2.2, but there are some people claiming that they were never prompted to update, it just happened on its own, which opens up a whole nother can of worms.
Once had a 740 turbo that I had turned into a high speed sleeper with racing suspension, brakes etc.
When I gave it to my nephew, he added several speed goodies including an electronic adjustable wastegate that could hold in the atmospheres. Those blocks are as bulletproof as you can find. Did quite well at the drag strip.
Young lad tried to impress another car one night. He was doing quite well on this long uphill highway pass when the rollers came on. Dad was none to happy as the legal bills were pretty intense.
1) Come live and work in CA
2) Come visit CA
The reason being that we need real currency circulating. Pesodollars are of little value. The Loonie, however, is real money.
Canadians with the strong Loonie also have the buying power to afford a home... Californians are cash strapped. We still have jobs for people with real skills, but ours can't come up with a down payment to live near work.
@HS
Life begins at 2 bar.
>At 5:41 AM, wagga said...
>@HS
>Life begins at 2 bar.
Word
Atmospheres and sleepr: http://ventura.craigslist.org/cto/863894247.html
Note, running a little late new topics soon I hope.
DJIA below 10K.
CNN Talking heads talking about knife catching.
Born from jets.
Yes I know that is a SAAB slogan, but the jet engines used in SAAB aircraft are actually made by Volvo.
DJIA -493 at this moment (10:40 am) at 9831.
VIX 54.94
That's not even a number anymore.
Yowza, just jumped to -578 while I hit enter. Now at 9746.
Now if I were in the short DJ ETF on a day like today and jump into the long ETF on the bounceback day ... hmmm (nah, I'd be in the loony bin by now.)
DJIA looks like a SAAB fighter (with a Volvo engine, of course) flying straight down on full afterburner.
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