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Principal write-downs on mortgages could be coming as the President's reelection likely means Ed...

Principal write-downs on mortgages could be coming as the President's reelection likely means Ed DeMarco's days as FHFA chief are numbered. Applying the quaint notion the housing agencies are to be stewards of taxpayer money, DeMarco has blocked administration plans for write-downs, arguing they would not just be costly, but ineffective as well. Nice to know you, Mr. DeMarco.
Comments (12)
  • davidbdc
    , contributor
    Comments (3143) | Send Message
     
    I think we've seen the future and things like mortgage write-downs are just the tip of the iceberg.

     

    It should be fairly obvious that Obama won re-election in large part by using government money to increase his voter base. Blue collar workers in Ohio and Michigan were bought through government bailouts of the Auto Industry (and I supported GM being bailed out but felt the law should have been followed - but I would have let Chrysler head into BK). Large percentages of those earning under 30,000 voted for Obama through the promise of sustained welfare programs and free health care. Young voters promised "relief" on their student debts. Etc, etc.

     

    The government has successfully gotten its tentacles into too many people and its becoming obvious they will not vote to cut the cord.

     

    We've forgotten things like Freedom and Liberty. In their place are Entitlements and "Support". And if you favor Freedom and Liberty over Entitlement and support - then your a hateful greedy person.

     

    A sad state of affairs.
    7 Nov 2012, 01:11 PM Reply Like
  • Hoopono
    , contributor
    Comments (219) | Send Message
     
    No surprise here. A continuation of re-distribution of wealth wherein wealth is transferred from the responsible to the irresponsible. A view that seems to be supported by the new majority of our electorate.
    7 Nov 2012, 02:01 PM Reply Like
  • just_speaking
    , contributor
    Comment (1) | Send Message
     
    Both sides are redistributing wealth. Corporations are doing the better job at it.
    10 Nov 2012, 03:27 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Yep..not everyone will get a writedown..only the correct politicial ones will..
    7 Nov 2012, 02:59 PM Reply Like
  • funguide
    , contributor
    Comments (48) | Send Message
     
    More republican BS. Best way to get the economy moving is to move it from the bottom up. WIth the banks not allowing people to refinance, underwater homeonwers need relief.

     

    Oh and I have heard all the arguments about making bad decisions and where is my chcek when I am current.... Simple answer, these people were also current but when people lose their jobs (financial crisis) paying monthly mortgages becomes harder.

     

    Also the government has limited resources and must allocate them efficiently. Simply put, its more bang for the buck to help the underwater homeowner than anyone who is current.
    7 Nov 2012, 03:23 PM Reply Like
  • MadAsHellAnd
    , contributor
    Comments (207) | Send Message
     
    "Simple answer, these people were also current" - funguide

     

    That's naive. I'll give benefit of doubt that you're not so well informed that it would actually be deceptive.

     

    Moreover, that's a socialist or communist approach you're espousing. And then you advance that the [fed] government can perform this function efficiently! Once again, either incredibly naive, or just dishonest claim.

     

    How about this. Let's say you have full coverage private insurance on your car, but have not saved heavily for a rainy day or sufficiently funded for emergency financial times. Then one day, through absolutely no fault of your own, the engine seizes up (which the policy doesn't cover). The garage finds other deep flaws in the braking and suspension, and it's going to cost nine grand to get it all right.

     

    You also need that car to get to work too. Wow. Something has GOT to be done. So how do we deal with this?

     

    A. You act in one or more of innumerable solutions. Anyone can eaily add 30 more to these:
    1. Take the bus until you can afford to buy another or afford the 9K.
    2. Move closer to work and walk. Or move closer to spouse's work, and you use his/her car.
    3. Borrow the money from your parents or relatives.
    4. Sell the boat. Remember, you *need* a car for work.
    5. Talk to HR and find a carpooler. Prorate costs.
    6. Downsize. Rent.
    7. Cut out 9K of expenditures.

     

    OR

     

    B. I bail you out. It may be the "government" writing the check but I pay. TANSTAAFL.

     

    Denying the obvious answer A here, by saying that society cannot function unless the nanny state coddles us, is ultimately just dishonest.

     

    And I know people are frothing to say "what if someone doesn't *have* 9K to cut? Then government entitlement is the only survivable option." Wrong. I know lots and lots, and so do you, of decent, hardworking people who instead practice item 1. through 6.. Or make it some other way.

     

    Not everyone can afford a house. It's an affluent luxury. If you can't afford it, it is not the required obligation of me or society to pay for yours. Just like my house is for you, regardless of why I might be unable to pay for it. Look, I will help you or someone individually and/or campaign for them if I see their situation as sympathetic or meritorious. I actually perform charity, and know plenty whose efforts dwarf mine. This is just to say that there IS such a thing as effective charity; I say so as I walk the walk.

     

    But I'm not *obligated* to pay for the down-on-the-luckers. This is America.

     

    Or, it is supposed to be. Or used to be. Despite OBullshit's strenuous efforts in the catastrophically wrong direction.

     

    funguide, perhaps you've "heard all the arguments" but I think that the point made here is pretty straightforward if you are honest about it.
    12 Nov 2012, 08:44 PM Reply Like
  • biznesspf
    , contributor
    Comments (14) | Send Message
     
    You are correct but it will not matter in the long run. The USA is in decline and it will NOT be reversed in the long run. We have been subsidizing and importing poverty since the mid-60s and it IS a way of life. The Democrats will add millions of voters to their party over the next four years and they will continue to vote for "their right" which include money for babies, housing, food stamps, total medical care, cell phone, computers and soon to come, ta da: FREE TV, cable and upgrades in all the priors mentioned. Eventually the lower socio-economic humanoids who have no idea of culture or responsibility will eat the rich and the political oligarchy of the Left, the Marxists will control everything and ultimately we will collapse. BTW, there will be no caucasians in the new order. Only a wonderful diversity of people of color. sigh.....
    16 Nov 2012, 12:17 PM Reply Like
  • george.otty@yahoo.ca
    , contributor
    Comments (59) | Send Message
     
    And how exactly has that bailed out auto industry done since? I believe they have paid back their loans and thousands and thousands of American workers still have jobs and still pay their mortgages, taxes and inject money into the economy. How exactly would have letting them fail without bailout money would that have been better? And yes, I have read that even though the money was paid back, the Chrysler deal cost the government something like $1.2B (I could be off on that), which is the approx cost in today's dollars to a B2 stealth bomber. I like those bombers but this kinda puts it into perspective. Why you guys use Seeking Alpha to air your political statements is beyond me.
    8 Nov 2012, 12:02 AM Reply Like
  • chopchop0
    , contributor
    Comments (3162) | Send Message
     
    GM hasn't paid back their loans

     

    http://bit.ly/W5tUxV

     

    We the taxpayers own billions in GM stock that has done NOTHING but decrease in value since the IPO in 2010.
    13 Nov 2012, 10:02 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    the reason is a flat level playing field...if your business fails...it should fail...and your competitor will pick up the slack who is or was doing a better job than you....so GM goes away.....Ford will pick up the slack...Toyota...maybe a new GM....it should be survival of the fittest....but we have eliminated that..you buy a house that goes down in value....its not your fault anymore...you can´t refinance....then don´t..keep paying your mortgage as always...or lose your house...that is what the contract said...where does anyone get the thought that someone else should pay for their expenses.....and not themselves...the Democrat party...that is where..and it is killing this country
    10 Nov 2012, 08:36 AM Reply Like
  • William Packer
    , contributor
    Comments (293) | Send Message
     
    What makes you think DeMarco is qutting? He is independent and President can't fire him.
    13 Nov 2012, 11:09 AM Reply Like
  • NV_GARY
    , contributor
    Comments (1801) | Send Message
     
    See this article: http://wapo.st/RRS5BH

     

    He is appointed and the appointment selection was made 2 yrs ago by Obama.
    13 Nov 2012, 01:37 PM Reply Like
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