Posted on 08/05/2010 9:53:06 AM PDT by Qbert
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. A few key points:
1) Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.
2) Wall Street banks are alerting their clients privately to this possibility. Here is what some are cautiously saying publicly. This from Goldman Sachs:
(Excerpt) Read more at blogs.reuters.com ...
Are they really stupid enough to think this will work? If it gets them the approval of the 1 in 5 homeowners who are under water, it will get them scorn from the 4 in 5 who have been responsible. That is just stupid arithmetic even for a brain dead POTUS like 0bama.
Rick Santelli...the only conservative commentator on CNBC and the originator of the idea of tea parties to protest the first bailout of delinquent mortgage holders
Talk about wealth redistribution.
bookmark
I'm betting my bottom dollar that I and many like me will see zero relief from this latest round of Government intrusion into the (what was) free market.
I wish!
The 2012 surprise will be when he invites us to refer to him as Mr. Beast or ‘his 666ness’.
“You have got to be kidding...”
I wish I was.
More here:
“[T]he rumors are pretty darn strong with Wall Street firms privately warning their clients it is a distinct possibility.”
There’s more than one way to pay reparations............
silly me. We bought a modest home - stayed in it for 10 yrs. and made our payments month after month.
We even put in a few extra payments each year.
We now have a good amount of equity in our home.
Silly silly stupid us!
Why is anyone surprised that B.O. is going to order Freddie and Fannie to forgive mortgage principal? He already ordered Bank of America to do just that a long time ago. They just began implementing it last Monday according to my sources:
http://www.freerepublic.com/focus/news/2565063/posts?page=88#88
It’s all about power for democraps. This is all about trying to keep in power. Nothing more.
That guy doesn't vote Democrat and therefore doesn't count.
Yup, and there is no guarantee that ones that benefit from the bailout are going to vote dem when they would not have otherwise. This would be an epic fail in so many ways. Well, except furthering the destruction of this country, which is odunkerbunny’s goal anyway.
Redistribution of wealth in its absolute finest form!!
You really want to do something? How about suspending payroll taxes for a year? That will put money in pockets without all the bureaucratic delays.
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