Banks/Fed Swing to the Rescue.
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rose-colored-coolaid
Bubble Banter Boss
Joined: Mon Jun 18, 2007 10:26 am
Posts: 1977
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 Banks/Fed Swing to the Rescue. http://money.cnn.com/2007/12/03/real_es ... tm?cnn=yes
Of course, like George of the Jungle, they are not particularly good at swinging or rescuing. The current plan will bailout homeowners who cannot afford* their investment (sic).
* Definition of 'cannot afford' subject to redefinition at any time. Current definition excludes those who are 'not subprime', already in default, hypothetically capable of meeting payments, investors, speculators, or those who cannot actually afford their homes.
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| Mon Dec 03, 2007 3:45 pm |
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perfectfire
Bubble Banter Boss
Joined: Sun May 20, 2007 11:40 pm
Posts: 523
Location: Bellevue
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I imagine that they will exclude people that lied about their income.
Last edited by perfectfire on Tue Dec 04, 2007 11:47 am, edited 1 time in total.
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| Mon Dec 03, 2007 3:53 pm |
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CliveL
Bubble Watcher
Joined: Mon Oct 01, 2007 1:30 pm
Posts: 10
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I like the headline of this article - the latter half
Foreclosure rescue: No help for you
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| Mon Dec 03, 2007 5:13 pm |
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Lake Hills Renter
Bubble Banter Boss
Joined: Sun Feb 18, 2007 9:13 pm
Posts: 550
Location: Bellevue
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One of the local news stations played a short blurb about how this is going to save the local housnig market. Good to know that's done with!
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| Mon Dec 03, 2007 6:51 pm |
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SeattleMoose
Bubble Bloviator
Joined: Sun May 06, 2007 7:26 am
Posts: 220
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Too Little Too Late This is sounding more and more likely to be as effective as it would have been to add a few 2x4's in the basement of the World Trade Center towers the morning of 9/11 and then proclaiming...."don't worry we have reinforced the building".
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| Mon Dec 03, 2007 7:01 pm |
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rose-colored-coolaid
Bubble Banter Boss
Joined: Mon Jun 18, 2007 10:26 am
Posts: 1977
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CliveL wrote: I like the headline of this article - the latter half
Foreclosure rescue: No help for you So..ah..Henry Paulson is the Help Nazi - ala Seinfeld?
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| Mon Dec 03, 2007 7:07 pm |
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SunTzu
Bubble Blatherer
Joined: Tue Jul 03, 2007 11:52 am
Posts: 53
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http://www.bloomberg.com/apps/news?pid= ... refer=home
Quote: One challenge will be to craft a deal minimizing lawsuits from investors in bonds backed by the mortgages being rewritten, analysts said. The longer that lower rates are extended, the more risk posed to the bonds' values. Republican Representative Mike Castle of Delaware has proposed legislation offering a ``safe harbor from legal liability'' to mortgage servicers.
My question is isn't this freeze doing more harm than good?
First, it seems to me this is sort of akin to a forced default declared by the gov't on behalf of all the subprime borrowers on all the investors who have purchased any bonds related to these mortgages (yes, I know it's not default in the strict sense because there is still payment stream). So that the value of these bonds now would really have no value/buyers even if investors want to sell them. For the banks such as C and WM that have these bonds they probably got some kind of injection deal from the gov't so they have nothing to lose. But the gov't just screwed a whole bunch of bond holders.
Second, even though the whole details are not known, but it would incentivize those who are teetering on default to just throw in the towel and go ahead and default, so that default rate would actually increase.
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| Wed Dec 05, 2007 1:22 pm |
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SeattleMoose
Bubble Bloviator
Joined: Sun May 06, 2007 7:26 am
Posts: 220
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And The Verdict Is.. It was almost funny to see the TV7 news anchor chirp with glee that Bush is bailing out the RE market and saving all the FBs.....
But the devil is in the details. Basically you will NOT be saved if you are white, black, yellow, red, Republican, Democrat, Male, Female, or Catholic.
BUT EVERYONE ELSE WILL BE BAILED OUT!!!
I actually heard the MSM mention 30% declines in value for the first time today (from Moody's I think). Given that the MSM ALWAYS downplays bad news to the fullest extent.....you can predict at least 50% median price declines. 
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| Thu Dec 06, 2007 5:53 pm |
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acurawsu
Bubble Watcher
Joined: Tue Feb 27, 2007 10:24 am
Posts: 13
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Flagrantly plagiarized from another blog:
The NAR said there is no Bubble. Why do we need a bailout?
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| Thu Dec 06, 2007 8:55 pm |
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