Posted on 08/05/2010 6:39:02 AM PDT by Daisyjane69
Edited on 08/05/2010 6:53:02 AM PDT by Admin Moderator. [history]
James Pethokoukis hears rumors of an August surprise coming from the White House, one that will attempt to win backs the hearts and minds of voters dismayed at the failing economic policies of the Obama administration. With the government fully in control of Fannie Mae and Freddie Mac, Barack Obama may issue an order to forgive portions of underwater mortgages processed through the GSEs, where negative equity approaches $800 billion overall. Some financial houses have begun quietly preparing for the possibility:
Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.
The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. …
Hy Mod,
Thanks, that was cool.
I don’t know how to do “colors” on a post!
:)
If the obamites get the middle class like you by the wallet, your bodies and minds will follow
that would be the goal of this program
Same reason to require EVERY “government approved” insurance policy to spend at least $1 on abortion.
It’s ObamaMoney.
I would be surprised if he goes this far. This is way beyond the usual demagoguery.
This will go well with 99 weeks of unemployment checks.
Are you utterly unaware of American history?
I’m confused....is this for ALL mortgages or certain mortgages processed by certain companies?
Let’s keep in mind that many of these people are underwater because they treated their homes like piggy banks, and mortgaged it to the hilt in order to pay for family trips to Disneyland, jet skis, boats, breast implants, high tech stereos and everything else you can name.
Their homes are underwater because they likely didn’t bother with upgrading their windows and doors, insulation, heating and air conditioning systems, hot water tanks, and other infrastructure. The house itself is probably not up to current code, and probably needs significant and very expensive repairs before it could ever be worth anything near what is mortgaged against it.
This is exactly what I feared we would get to when the sub-prime crisis first hit: cash grants to individuals directly out of the Federal coffers to bail them out from their own financial irresponsibility. I asked then how this could occur under the US Constitution, and in short, it is blatantly unconstitutional to do this, and will lead to nothing good.
I hear lots of excited chatter about what may happen in the November elections, but the dangerous truth is that there is plenty that a vindictive and defeated Democrat Party can and will do to all of us out here in fly-over country.
Stout hearts...
dream on
“landlords” get no breaks under this regime
no energy credits for upgrades and replacements
new taxes on rents
AMT means reductions of rental expense deductions
probably no refinancing deals for nonowner property
marxist democrats HATE landlords as much as they hate business owners
This might bring out the REAL pitchforks.
Last night watching Special Report and the news about Iran and the saber rattling going on, it occurred to me that we might be getting set-up for a couple of October surprises: a US military strike against Iran’s nuclear facilities and now maybe this mortgage forgiveness “stimulus”.
A strike on Iran might result in a “rallying around the President” and given the give away of billions on under-water mortgages, maybe some more rallying could be forced.
These are very scary times.
THIS IS HUGE.
If he does this, he will essentially DESTROY the American economy. NO trust will be involved in making contracts and promises....the government will own your home.
Barack Hussein Obama’s agenda must be stopped.
It would also have a negative impact on your FUTURE financial situation.
This might finally bring about the necessary tax revolt next April to starve and collapse Fedzilla.
I don’t think this would help the Democrats in the fall. The forgiveness would benefit mostly those who were about to vote Democrat anyway, and it would alienate the moderates and the conservatives even more than they were alienated already.
The guy losing his job is not exactly a “choice” now is it?
Who knows what that goofy arrogant POS is about to do.
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