Skip to comments.Congressman: Obama should unilaterally ‘refinance every home mortgage’ [VIDEO]
Posted on 10/22/2011 4:59:16 PM PDT by Sub-Driver
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Obama can keep his muslim kenyan hands off my mortgage.
“Illinois’ 4th district is the winner.”
Does that district actually have two parts or is there a connection somewhere?
“Why can’t all districts look like Wyoming’s first district?”
Some of these state legislatures, while they are in Republican hands, should rewrite the rules on how to define districts. There should be some kind of ratio of length to width.
There is a very thin connection along Interstate 294 probably about the width of the Interstate, plus one household on either side.
<sarcasm>VERY creative cartography.</sarcasm>
Never to late to fix things or a reset will happen all by itself anyway.
Banks sold all their mortgage to the GSEs, in other words the government (taxpayers) owns 90% of all mortgages (at a loss).
Banks now basically get their money for free from the Federal Reserve.
What to do?
Start a National Bank with interest free loans and make the Federal Reserve the bad bank to exist to pay off all the bad debts then abolish it, probably only take a couple generations to do that.
Lop off all mortgages by 50%-30% and adjust the monthly payments accordingly (investors take the same haircut).
Make all old and new loans interest free (fee based). Banks go broke, who cares? We have a national bank now working non-profit.
Everything is almost to the point of no return except of course the automatic reset that happens when Congress fails to act in a meaningful way. Much pain ahead, either way.
This is the White House’s strategy. They have floated this bubble a few times now. Now they are in league with OWS they are going to use this idea to bludgeon bankers.
It won’t just be the Jobs Bill. This will be “The bankers got all that bailout money but the average people got nothing. We need to adjust interest rates”.
Deep down inside, I agree. I disagree that Obama can or should do it unilaterally - and I’m not sure if even Congress can do it. But what I agree with is the idea. The TARP and other bailout money is not trickling down. And if you want to jump start this economy, a service economy, you have to figure out how to get money into people’ hands. If every household can save a couple hundred to a couple thousand a month on their mortgages, this economy will start to grow again.
I don’t know how you do it. The idiots in congress and the Fed Reserve put the wrong strings on the money they gave out. They made it harder for banks to lend, when they should be at least trying to make it easier to the best of their abilities. Some of it always will be out of their control.
Did this idiot get go to sleep and wake up thinking we live in a dictatorship?
The main problem with people finding themselves underwater on their loans is not due SOLELY to the fact that the value of their homes is less than the value of the loan...it’s because the cards were stacked against them to begin with and it’s called the AMORTIZED LOAN!
If most had been paying on a simple interest note instead of a loan designed so that interest was heavily paid on the beginning of the loan and principal on the end. Most people who own a house on a 30 year note and have been paying for 10 years have very little real equity.
When things turn bad and they try to sell the house they then find that through the years they have hardly paid down their notes at all!
The government should outlaw all amortized loans period!