Now how'm I gonna buy your house for 10 cents on the $ while these clowns play games. sheeeeeeeeeeeeeeet. April 28 (Bloomberg) -- Bank of America Corp., seeking approval of its Countrywide Financial Corp. takeover, plans to modify at least $40 billion of mortgages during the next two years to keep customers in their homes. The move will help as many as 265,000 homeowners, Liam McGee, president of the bank's global consumer and small- business unit, said today in Los Angeles at a U.S. Federal Reserve hearing on the purchase. The company will donate $2 billion to communities in the next 10 years, including funds for organizations giving advice on foreclosures, he said. ``No one benefits from a foreclosed home,'' McGee said. ``It is bad business for banks.''
As long as it's not coming out of taxpayer pockets who cares. If BOA wants to empty their pocketbooks into this mess let them.
Hundred bucks says this is the start of some new gummint program. Since BoA did it, the gummint will try to one up them or back BoA with taxpayer money.
Actually it is coming out of tax payer pockets. BoA and other banks are demanding tax credits / reductions from Washington for helping these home-owners. This means the corporation will pay less in taxes. Of course, the government will have to tax citizens more (like you & me) to make up these banking corporate tax revenue short falls. So in the end.... it is basically coming out of your pocket.... one way or another.
Another way to look at it is, reward reckless decisions. Sounds like wall street. Hell lets all go and max out our budgets, we have to pay for it anyway. Who gives a shit anymore. Sound decision making makes no since anymore.
It's more than that. As citizens go forward facing ever greater financial challenges, they will turn to the Gummint for help and relief.... => More Socialism in all aspects of our lives.
We all pay - just as we did and will continue to pay with the Bear Stearns orchestrated buyout. Unfortunately, in times of crisis - we will have to seek the solution that makes the most sense, not the solution that hinges on ideology. Let those houses go into foreclosure and the snowball effect could be even more disastrous. The fear is that as foreclosures are accelerating values deteriorate further, thereby encouraging more to "walk away", which creates a vicious cycle. Trillions more could be lost - maybe it's too late? Who knows. Back to Bear Stearns - how would a laissez faire approach affect the derivatives market? Ideology and the dollar have to be sacrificed to avoid financial armaggedon. As much as I hate seeing the cure - the disease is progressing - we have no choice.