September 18, 2008
They're Not Done Yet
I wrote in the post below about how the federal government has nationalized a significant portion of the financial industry with nary a peep. People are decrying the bail-outs. They are expending a lot of energy assigning blame as Wall Street is being replaced by Pennsylvania Avenue.
I wrote in a comment to that post that I don't believe this is all part of some grand conspiracy to take over everything. I think we have painted ourselves into a corner and the government sees these bail outs/takeovers as the only option we have other than financial disaster.
The government is on a one solution fits all roll that seems to know no limit.
(First of all, I think we can forever dispense with the expression Congressional Leaders. There hasn't been one spotted in the wild for so long it is safe to assume they are extinct.)
The government is going to buy up all the crappy mortgages it coerced lenders into making in the first place. The number their talking about spending is $300 Billion. It seems almost fitting - except it's the tax payers who are going to have to pay that bill. Some of us are having a tough enough time with our own mortgages.
And what is going to happen to those sub prime borrowers when they stop paying on the loan that the federal government holds? Is Washington going to be foreclosing on tens or hundreds of thousands of homeowners?
I really don't see that happening. That's not the way to win votes. To win votes you just ignore the nonpayment and forgive the loan. Free houses brought to you by Uncle Sam.
Where is John Galt?
I wrote in a comment to that post that I don't believe this is all part of some grand conspiracy to take over everything. I think we have painted ourselves into a corner and the government sees these bail outs/takeovers as the only option we have other than financial disaster.
The government is on a one solution fits all roll that seems to know no limit.
The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history.
While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.
While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.
(First of all, I think we can forever dispense with the expression Congressional Leaders. There hasn't been one spotted in the wild for so long it is safe to assume they are extinct.)
The government is going to buy up all the crappy mortgages it coerced lenders into making in the first place. The number their talking about spending is $300 Billion. It seems almost fitting - except it's the tax payers who are going to have to pay that bill. Some of us are having a tough enough time with our own mortgages.
And what is going to happen to those sub prime borrowers when they stop paying on the loan that the federal government holds? Is Washington going to be foreclosing on tens or hundreds of thousands of homeowners?
I really don't see that happening. That's not the way to win votes. To win votes you just ignore the nonpayment and forgive the loan. Free houses brought to you by Uncle Sam.
Where is John Galt?
Posted by: Stephen Macklin at 10:57 PM | No Comments | Add Comment
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