Yes, I heard that and it’s scary as hell.
Absolute idiocy.
Maybe I’ll call my mortgage bank right now and demand they lower my principal. Or I’ll take ‘em to court.
Socialism....
These two loons (Obamaloon and Bidenloon) cannot possibly be this stupid, are they?
Incredible.
More catering to the lowest common denominator of society.
Dare I say race-based. Yes, as a matter of fact, I do.
These two loons (Obamaloon and Bidenloon) cannot possibly be this stupid, are they?
Yes, it was one of the dumbest things I’ve ever heard any politician say.
But don't you know this will raise "confidence". /Sarc.
Ummm...the heading should be principal...not principle
Yes. My wife in I joked that we want our principle balance adjusted to zero and we would then not care at all what our interest rate is.
This is how they will essentially get their “reparations.”
Not a bad idea if you don't think about it too deeply....
So much for binding contracts. This would open a very wide door for gaming the system.
My wife and I literally looked at each other with gaping mouths. I was stunned.
What a nincompoop.
This isn't an odd position for a Democrat. It's vote "buying," pure and simple.
I did not know the legislative branch could impair contracts by fiat, just by decreeing that previously entered-into contracts could be denied enforcability.
Delay in payment or discharge in bankruptcy, yes. But to wholesale rewrite it? Hmmmmm.
Yes. Scared me. We are doing okay now, but if they call raise the principle we're in trouble. They cannot even do that. Stretch Biden is a jackal.
Isn't that what caused the worst aspects of the Great Depression, people losing homes because the banks were allowed to call in all the mortgages and people just weren't prepared to pay?
This is the equivalent. The FEDS will own us all, well them and China.
Needs to be put in a campaign ad.
I thought I had heard this but tjought it could not be.
I am sure that Joe has no idea of the difference between interest rate and principle.
So the court could say that you bought your house for $100K but now you only have to pay $25k. You paid $300K but you are rich so now you have to pay $450K...Right?
lol, I thought I heard it wrong last night, and I had to rewind it to make sure. They are truly off their rocker to think they have the authority to lower the principle on someone’s mortgage. Just pandering to the low income and people who are about to go into foreclosure!
It will only serve to raise the cost of borrowing for the poor. Like most Marxist policies, the result is the opposite of the intent.
THAT'S JUST NUTS!!!
Interest being a future income to the bank would not be such a crisis, but if the bank loaned $200,000 and courts said no make that $125,000 who eats the $75,000. Are they planning another bailout??
Thanks for bringing this up. I think I yelled “what?!!!” 7 or8 times at the TV last night.
I couldn’t believe I was hearing that. Who the hell would ever lend money the day after that one became law??
Yes - I heard that.
I asked hubby “how the heck do you just change the principal on a loan?”
hubby shrugged his shoulders.
A useful change, assuming that your goal is to change America into a Third-World kleptocracy.
There are so many financial schemes that the Democrats can’t wait to enact that along with the massive new taxes that an Obama presidency would bring ..all of this will doom the US economy if Obama is elected.
“Well Gwen, two years ago Barack Obama warned about the sub prime mortgage crisis” - Biden
Can anyone confirm this???
I was yelling at the TV when he said that. Palin could have literally destroyed him and the messiah on that point, but she let it pass.
She should have replied “you know Joe, the idea you just proposed is the just about worst idea I have ever heard. 94% of Americans are current in their mortgages, and the for the 6% that are not, I would propose gov’t incentives to the banks to ‘workout’ the mortgages that can be saved. Unfortunately, not all of them can be. It should be between the mortgage holder and the borrower to decide, not the courts. If you allow a judge to reduce both the interest rate and principal on the mortgage, what does that say to the 94% of the people who have not bought more house they can afford, who have not used their house as an ATM, who have not bought a house to speculate and flip, and who have made sacrifices to stay current in their mortgages. “What you are proposing is socialism, not capitalism, and if we were to embark on a plan like yours, what bank would ever make new mortgages? To make a new mortgage with the knowledge that a judge can invalidate the terms at his whim, and without any recourse reduce both the interest rate and principal, would be crazy.” If you were to do this, you would create a huge incentive for more people to simply stop making mortgage payments and hope they can petition the court for better terms.”
Republicans have no basis for arguing against this or ANY socialist takeover after caving on the ‘bailout’ . Capitialism is dead. Free Markets are dead. Conservative arguments are dead. Republicans are dead, the party of NOTHING. Here’s what Bush and McCain GAVE the democrats:
http://www.youtube.com/watch?v=henMX35nkJg
I honestly thought that I was reading democratic underground when he said that. I really thought I misunderstood. Guess not.
Yes. I heard it, and then my mouth hung open for at least two minutes until the NEXT O’Biden gaffe!
This would be DISASTROUS to real estate nationwide!! In fact, this one thing could possibly drop the economy into a complete depression! He is espousing the wholesale devaluing of real estate, at a time where real estate is already devalued. You want to see job loss, and a free-falling dollar?
My question is: did he pull that one out of his arse, or is this something that he has actually given a few minutes of thought too?
Frickin’ dimwit who has absolutely NO CLUE as to how a free-market economy works after 30 years in the Senate!
When is McCain going to start using all this ammo?
Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe.
That would keep people in their homes, actually help banks by keeping it from going under. But John McCain, as I understand it -- I'm not sure of this, but I believe John McCain and the governor don't support that.
Transcript is here.
I was raising hell about this a few days ago when I heard it mentioned on TV as part of the bailout amendments that the Dems wanted. Absolutely insane.
It more than raised my eyebrows - it scared me!! This should be out in the public (ad) NOW!!!
I heard it and couldn’t believe it was not picked up on....what about my mortgage??? will brainless biden reset the principal of my mortgage at better terms considering I pay on time????
Go to your bank...refinance to stretch you payments out. One of the problems I see is giving 30 years mortgages to people who are 50 and those damn “equity loans”...which is usually what triggers the bankruptcy....besides peoples’ maxed out credit cards.
I guess they think it's OK for Congress or the courts to do so, just not a state government.
My poor wife had to listen to me freak out when he said that.
What the hell universe are we in when these jackasses think they can simply usurp anyone’s property at will.
I have some very serious worries about where we are, nevermind where we are headed.
I heard him say that and my jaw DROPPED. Courts ... adjusting the PRINCIPLE amount!!! I was so mad. What a FASCIST PIG! (There’s a lipstick joke in there somewhere.)
we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you’re paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe.”
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This doesn’t go far enough. This shouldn’t just involve bankruptcy mortgage proceedings but all mortgages. To achieve fairness the courts should set interest rates and reduce principal for all mortgages. There should be no reason that one person owes more on his house than another. This affects the poor and minorities the most and is discriminatory. /s
Hi guys I hate to say this, but this *was* in the House bailout bill last week (Section 110, Assistance to Homeowners). It may still be in the (much larger) Senate bill - I haven’t had a chance to go over it all yet. Read it and weep:
” (1) IN GENERAL. To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.
(2) MODIFICATIONS. In the case of a residential mortgage loan, modifications made under paragraph (1) may include —
(A) reduction in interest rates;
(B) reduction of loan principal; and
(C) other similar modifications.”
Right there, plain for all to see. If it’s still in the Senate bill, then they have passed it, the House will pass it, the President will sign it, and it will be LAW.
By the way, it gets better. Do you know who the “Federal Property Manager” mentioned in Paragraph 1 is? HINT: their names are Freddie and Fannie (Section 110 A 1 ).