The democrats are in charge. That's what democrats do. They spend money, give away money, confiscate money from those who have it and in general bring about massive inflation. Hopefully, they will keep us in a recession for 4 years so prices will not skyrocket. More likely, we will see stagflation again since the dollar just can't hold up under this massive creation of money. If we let Obama's spending and social engineering to continue for 4 years we won't recognize America by the time he is done. It might even be irreversable by then (assuming we aren't nuked before then).
The clock is ticking. You can modify all the loans you want but if people have no job, the payment is hardly going to matter. Maybe they should leave the loans in place and make everyone eligible for section 8. Maybe they should nationalize housing and not the banks. Make every sub division public housing.
All this "money for the poor and distressed", they are just buying votes and they don't care how bad they screw things up at all...
There is an epidemic coming online in the next few months. All the small businesses that are folding up right now are going to be defaulting on their mortgages. The shitstorm is just beginning. I would say this is too little too late.
Reading a bit about this. It seems to violate contract law. You can not, or should not be able to, subordinate the first lender. There are no rules anymore.
I worry that there might be a popular revolt within the democratic base should this go on for too long. So far, only the Wall Street fat cats benefited from the government handouts. Personally, I'm sick and tired of hearing that one bank's failure will cripple the world. What difference does that make for the average Joes Sixpack who already lost his job and is on the verge of despair?
Altruism rarely makes its way into policy. The little guy is only helped inasmuch as his failure ultimately affects the the broader market, and thus, the larger investors. Watch the government money flow - where has 90%+ of it gone so far? This new proposal basically tells the investors - we can do nothing and you all lose, or we can orchestrate a haircut, however unfair to some, and maintain some semblance of your status quo.
"nationalize housing" Yes, that is on the agenda. The socialist agenda is to end private property ownership. We need a few more severe blows to the economy to get the masses (the one's the media will parade) fired up and willing to give away their rights. We are "too big to fail"....better subsidize first, own later. One degree at a time, the frog soon boils.