Bernanke did do an excellent job with what he was dealt but the Federal Reserve System is going to lead to boom and bust into the foreseeable future. Interest rates should be left to supply and demand. The US markets are the farthest thing from a free market. 0% interest rates will come with a future price tag.
what nobodys talking about is there could be another 3-5 million foreclosures that aren't in the #'s today. i for one have sucked all my equity out of my house and based on my first and second mortgage my loans are now 45% more than my home is worth.i can pay my mortgage easily but i will 100% take advantage of this program and default to get my principal down to what its worth. this massive moral hazard will be played out millions of times if the gov't does this.this will start a chain reaction threw out the economy of "screw it if my neighbor is getting handouts i want them". add in massively rising taxes and the incentive to work hard is gone thus starting a huge decline in the once great us.
What I don't understand is where in the hell are they going to get the $$$$ to fund all of these handouts? 2009 has been a miserable year for businesses, and thats a fact. What is funny about this is that the gov't can lie and fake all the data they want. But you can't fake tax revenue. And that is what funds the gov't, excluding the Bernanke "household" that purchased $600 bil in treasuries. With almost every state facing budget deficits, and reporting that tax receipts are wayyyyy down...just how do our brilliant leaders plan to reconcile these differences? If they continuing printing and monetizing.........well....that's a dead end road.
Same old ignorant rants from the same old ignorant fucks. How were these mortgage borrowers "unqualified"? The banks thought they were "qualified enough". Ah yes, it's all the "gubments fault". Damn ignorants forget the population votes in the "gubment". If your crook standing for office lost, wait your next turn. Unless you retards forgot, it's a democratic process. Stupid retarded bitches like you breeding like animals is why we're going downhill fast. Low IQ mofos saturating the gene pool with low quality genetics. If you don't like the process. get the fuck outta here.
Servicers often use a combination of actions to achieve payment sustainability. As a result, there is no single action that can be identified as the one component of a successful modification. Most modifications across all risk categories include an interest rate reduction, while significant numbers include capitalization of past due interest and fees and extension of the loan maturity. An increasing number of modifications across all risk categories include principal reduction or deferral. Table 19. Percentages of Each Type of Modification by Risk Category in Third Quarter 2009 Prime Alt-A Subprime Other Overall Capitalization 50.5% 57.5% 56.1% 63.0% 54.7% Rate Reduction 83.8% 80.4% 79.9% 74.2% 81.1% Rate Freeze 2.2% 2.9% 2.8% 1.5% 2.5% Term Extension 47.6% 50.3% 45.6% 55.9% 48.0% Principal Reduction 13.5% 15.8% 12.6% 5.7% 13.2% Principal Deferral 4.4% 3.1% 1.1% 5.7% 3.1% Unknown 2.9% 2.5% 2.2% 3.4% 2.6% Scataphagus, you see principal reduction is NOT for subprime people only? They do this for PRIME people more than subprime. This is 24 page, table 19. http://files.ots.treas.gov/482114.pdf .
Senior lenders very very rarely offer principle reduction. In California we have a lot of leverage against junior lenders with no equity. Those are the loans in which many people can get short payoffs or principle reductions. I know this for a fact because I was able to get about 15 shortpays on seconds while the borrowers stayed in the house. If you present the situation well it actually makes sense for the junior lender to take some money now. Junior lien holders act rationally, senior lenders have no need to make intelligent decisions because of the interference by government bailouts. And the adjusted accounting rules. by playing games our large institutions are able to pretend they are profitable instead of insolvent. I personally think the government is selling out our future. But, I also think homeowners are very supportive of the bailouts if it keeps property values propped up. Rather than face the music now the home owing public seems to happy if our massive future inflation also inflates their property values. By the way this was all caused by the combination of wall street profits and the need of local governments to earn tax money off inflated property values. Any way we look at this there is no will power to face the fact that U.S. real estate is still seriously overvalued. The only question is if the country can inflate so much over the next decade that salaries catch up to property values through massive inflation. The other scenario is that the dollar gets so weak - foreigners come in and buy. That is the game plan. Economic implosion or salary inflation or dollar devalution.