PublicMarkup.org has just put up Senator Chris Dodd's counter proposal on a government buy-out of non-performing and failing mortgages.
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Dodd's Mortgage Buy-Out Counter Proposal
PublicMarkup.org has just put up Senator Chris Dodd's counter proposal on a government buy-out of non-performing and failing mortgages.
PublicMarkup.org has just put up Senator Chris Dodd's counter proposal on a government buy-out of non-performing and failing mortgages.
It certainly requires corporations to be desperate for immediate liquidity to use the program and encourages selling to the government at a price they can recover. Which mortgages can be rewritten looks very weak, all should be reset to fixed rate and no more than current market value.
Bush will get 100% of what Bush wants
there will be no counter proposal
there will be no counter proposal
QUOTE(tomhye @ Sep 23 2008, 12:14 AM) 
It certainly requires corporations to be desperate for immediate liquidity to use the program and encourages selling to the government at a price they can recover. Which mortgages can be rewritten looks very weak, all should be reset to fixed rate and no more than current market value.
They might want to make the program mandatory for any financial institution that declares bankruptcy for the duration, or seriously defaults on a loan.
What disturbs me so is that no one is saying exactly what is involved in the taking over of the bad debts of these banks. The only thing mentioned is the housing mortgage problem. But how much of the $700B is made of home mortgages? What other ventures did they get into? If they can't tell us, I say:
NO
In this day of super computers, sloppy accounting isn't an option. These banks KNOW exactly what they've done. If they're not telling, it's because they're trying to pull another fast one on the US Congress and then the taxpayers.
NO
In this day of super computers, sloppy accounting isn't an option. These banks KNOW exactly what they've done. If they're not telling, it's because they're trying to pull another fast one on the US Congress and then the taxpayers.
QUOTE(Arneoker @ Sep 23 2008, 07:10 AM)
QUOTE(tomhye @ Sep 23 2008, 12:14 AM)
It certainly requires corporations to be desperate for immediate liquidity to use the program and encourages selling to the government at a price they can recover. Which mortgages can be rewritten looks very weak, all should be reset to fixed rate and no more than current market value.
They might want to make the program mandatory for any financial institution that declares bankruptcy for the duration, or seriously defaults on a loan.
Banks just don't want to take the writedowns, fixed rate on amounts not exceeding market value is a major haircut (probably about a third of nominal value) but it's better than they'll get for possibly worthless paper and a lot more liquid. The banks are being penny wise and pound foolish.
today';s NY Times says Alan Greenspan said a few years ago, the common person's home expense/mortgage is but a small fraction of all this
that too worries me
It seems like if there is 700billion, 300 of that is going to the fat cats if not more
that too worries me
It seems like if there is 700billion, 300 of that is going to the fat cats if not more
QUOTE(grammydidi @ Sep 24 2008, 02:50 AM)
What disturbs me so is that no one is saying exactly what is involved in the taking over of the bad debts of these banks. The only thing mentioned is the housing mortgage problem. But how much of the $700B is made of home mortgages? What other ventures did they get into? If they can't tell us, I say:
NO
In this day of super computers, sloppy accounting isn't an option. These banks KNOW exactly what they've done. If they're not telling, it's because they're trying to pull another fast one on the US Congress and then the taxpayers.
NO
In this day of super computers, sloppy accounting isn't an option. These banks KNOW exactly what they've done. If they're not telling, it's because they're trying to pull another fast one on the US Congress and then the taxpayers.
It's mostly a combination of mortgages and commercial paper. Evidently some of the derivatives are so chopped and formed (like bad processed food) that mortgages often no longer have a single owner, a swap process to put them back together would help. It actually is to the point where they don't know what's in a lot of the bundles, insanity that no reasonable person would agree to in the first place.
Now the ones that are merely insuring income from underlying paper can and should be allowed to go under, they lost their bet.
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