Indiana Homeowner Kicked Out Of HAMP For Early Payment Wins Reprieve

ComradeUSA

Indeed. This is just formalizing what has been happening for the last decade. Just what we need though, less regulation on banks (as if we have had any regulation).

ComradeUSA

The big issue revolves around banks having access to the Federal Reserve to borrow cheap money (0%) and then lend it out at high rates as the only source of lending. Don't you think the public would go straight to the Fed if it was able to borrow at zero percent? If the Fed actually had rates at market levels, there would be more competition to save but this isn't the way we are heading. Why should the too big to fail banks have a monopoly on borrowing cheap? It isn't like they demonstrated financial prudence over the decade.

In no time in recent history have savings accounts been this low. I remember back in 2000 when people were complaining about the 4 to 5 percent they were getting. People would love that today. The point being made is banks, who also issue out credit cards, charge usury rates on credit cards while offering zero in terms of savings accounts. This can also apply to the home buyer tax credit for example. I read that it was going to cost $15 billion when all is said and done and for each home purchase made, it was going to cost the taxpayer $43,000. Why? People were still going to buy homes anyway.

Banks are at the center of this mess. Just dig up the massive number of bank lobbyist in D.C. and you'll see why after two years of this recession, we have yet to see one major financial regulation come forward. Banks have gotten $12 trillion in financial bailouts and support programs.

ComradeUSA

Ben Stein the worst economist missing the tipping point of the Great Recession (ironically from the NY Times as well):

"(August 2007) The rate of loss in subprime mortgages keeps climbing. In time, perhaps it will double, maybe back to $67 billion. This is a large sum by absolute standards, and I would sure like to have it in my bank account.

But by the metrics of a large economy, it is nothing. The total wealth of the United States is about $70 trillion. The value of the stocks listed in the United States is very roughly $15 trillion to $20 trillion. The bond market is even larger."

Shortly after, Ben Stein was gone from the NY Times and started pitching free credit reports with wacky CGI squirrels running around him.

ComradeUSA

You only pay Social Security and Medicare taxes up to $106,800.

He also mentions a big source of income from capital gains which are taxed at 15%, less than ordinary income.

ComradeUSA

Many people are living in homes "rent free" and this is actually a form of stealth stimulus. If you didn't have to pay your mortgage for say 9 to 12 months, that frees up a lot of money to put back into the economy. Banks also win since they don't have to realize the actual loss on the home and carry it at inflated values.

With no financial regulation, we are heading to another crisis in 1 to 2 years because of these delays and gimmicks.

ComradeUSA

Interesting. JP Morgan, Chase, and Citi are too big to fail yet California can go down in flames even though it carries 13% of all U.S. GDP. If California can go into a bankruptcy process and take haircuts why can't banks?

ComradeUSA

In total a net loss of $72 billion in 2009. Remember when putting this baby into conservatorship was going to turn us a profit? Thank goodness for honest politicians telling us how it is with the bailouts!

ComradeUSA

More great ideas from California and the Governator. And watch prices go up by the amount of the tax hike as costs are pushed to consumers.

ComradeUSA

And then Buffet bailed out Goldman Sachs and all was happy once again in Basicland.

ComradeUSA

TROPHY CASE

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