redeyeant

Mortgage Cramdowns: A Disaster in the Making

No need to name calling, better dumb than rude.
Just do some modificatons it might work for some responsible and unfortune people. Such as reduce loan amount (to 250K in this case).
And not all family has six members.

On Jan 09 01:13 PM Anandakos wrote:

>
> What a crazy idea! How would forcing a family of six in a $600K home
> into a $150K single bedroom condo going to help reduce foreclosures?
> The family will say "f you" to the bank and let the house go. <br/>
>
> And if you will do some very simple math, you will see that the LTV
> ratio goes from 1.5 to 2.33 in your scenario. You're not only depriving
> the owner of a superior asset you are making it LESS likely that
> she or he will ever recover the $200K loss.
>
> You're not just a shill for the banks; you're a DUMB shill for the
> banks.
>
> On Jan 09 12:53 PM redeyeant wrote:

Mortgage Cramdowns: A Disaster in the Making

To qualify mortgage reduction, the debtor should be reallocated to another cheaper foreclosure house. Suppose he owes 600K and house he own worth 400K, then the bank can move him to a 150K condo and he can ref. to a 350K loan that he can afford. Thus reduce foreclosure homes and doesn't cost tax payer's money.

Bernanke Gives Up on Reverse Auction Idea

I don't understand, why not use the money to create thousands of new banks, new GS, new MS and let those old and greedy die.

Wachovia + Morgan Stanley = Dumbest Merger in History

They are hoping they will become 'too big to fall' after merge, and Fed have to bail them out.