The cost of the bailouts seems never-ending and more of the mounting evidence that it didn’t work, like a bailout recipient laying off 16,000 workers this year, continue to make the news. Tied to the root cause of the financial meltdown of 2007-2008, are mortgage giants Freddie Mac & Fannie Mae in light of their penchant for bundling sub-prime mortgage securities in the years preceding | Read More »
I mean, the basic concept behind the practice is worrisome enough: banks foreclose on a property when it goes into default, discover that the foreclosure sale doesn’t recoup their losses, so they get a ‘deficiency judgment’ to try to get the rest from the original borrower. So far, such is life – but where it gets worrisome is where they resell the judgments to third | Read More »
Note that this article doesn’t quite get the original report right, sort-of kind-of thank goodness; it confuses mortgage holders with homeowners when reporting the percentage of underwater mortgages (mortgages where the holders owe more on a piece of real estate than the real estate is actually worth). In other words, 28.4% of homeowners with mortgages have underwater ones, not 28.4% of all homes. This should | Read More »
It seems The SEIU is making rediculous threats for a change. They will get their way – NOW! Otherwise, they intend to get the banksters by crashing Wall Street. They intend to end capitalism as we now know it and redistribute the proceeds fairly. Silly me. I always thought you could do that by voting for Democrats. So just how does one get the banksters? | Read More »
Today’s hot rumor comes from James Pethokoukis: essentially, the White House (which is becoming increasingly frantic about the way that their Super Magical Unicorn Genius economic plans aren’t working) is scheming to partially bail out people with underwater mortgages. I know, I know: the government was not supposed to acquire Fannie/Freddie just to completely rewrite their balance sheets, but the existing scheme to let the | Read More »
Hey, is this not Freddie Mac’s strategy? Freddie Mac is asking for $10.6 billion in additional federal aid after posting a big loss in the first three months of the year. It’s another sign that the taxpayer bill for stabilizing the housing market will keep mounting. Asking the government to keep you afloat as an alternative to actually operate under sound fiscal principles, that is. | Read More »
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