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Date: 18 Feb 2009 13:58:56
From: johnny_t
Subject: Homeowners hit the Lotto...
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I am refinancing my bankroll!
Homeowners Hit the Lottery
By Morgan Housel
Of all the government measures to right the economy, President Obama's
plan to aid homeowners seems like the most irresponsible to date.
Why? Not because it helps individuals rather than big banks. Given the
choice, I'd much rather help average Joe nine-to-fivers than, say,
Citigroup (NYSE: C) or Bank of America (NYSE: BAC). Anyone would. No one
doubts that losing your home is a personal tragedy. I have a heart,
thank you very much.
Nonetheless, the proposal to spend $75 billion refinancing mortgages
that wouldn't otherwise be given the time of day is quite literally the
epitome of subsidizing failure, without asking for anything in return.
Here's a brief overview of the plan:
Homeowners with high loan-to-value (LTV) ratios (more than 80%) will be
able to refinance, provided their loans ended up at Freddie Mac (NYSE:
FRE) or Fannie Mae (NYSE: FNM). This assistance will be offered even if
borrowers aren't having problems paying their mortgage payments. Under
any sensible lending rules, most banks wouldn't refinance with such high
LTVs -- it's too risky, for obvious reasons.
Homeowners who are at risk of defaulting on their loans -- we'll
politely call them "people who can't afford their homes" -- will be
eligible for refinancing aid, funded by taxpayers. As the Obama plan put
it: "Millions of hard-working families have seen their mortgage payments
rise to 40 or even 50 percent of their monthly income -- particularly
those who received subprime and exotic loans with exploding terms and
hidden fees. The Homeowner Stability Initiative helps those who commit
to make reasonable monthly mortgage payments to stay in their homes --
providing families with security and neighborhoods with stability."
The plan then attempts to address a key problem we've all become
sensitive to: "This initiative," it says, "will go solely to helping
homeowners who commit to make payments to stay in their home -- it will
not aid speculators or house flippers."
Oh really?
What do you call people who bought houses that exploded in value in the
previous few years with a "subprime and exotic loans with exploding
terms?" I'd call them speculators. What do you call people who bought
homes without setting aside enough savings to cover an economic
downturn? I'd call them speculators. What do you call people who bought
homes that didn't fit their income profile? By golly, I'd call them
speculators.
No matter. We've been aiding Wall Street speculators for months now. But
-- and this is an important but -- every dime of taxpayer money injected
into failing banks, be it Goldman Sachs (NYSE: GS) or Wells Fargo (NYSE:
WFC) or AIG (NYSE: AIG), is money demanded to be repaid to the best of
their ability, and it came with equity warrants that offer taxpayers
upside potential if and when markets recover.
This homeowner aid package has no such clause. Home prices fell after a
period of undeniable gluttony (like they do in all markets) and now
taxpayers are bailing out speculators (yes, I'm calling them that). Yet
if home prices rise in the future (and they will), the bailed-out
homeowner keeps the upside. Heads, they win, tails, you lose.
I'd feel considerably better if a homeowner bailout plan came with
warrants on the upside, providing taxpayers the potential to profit for
the risk they're taking by injecting tens of billions of dollars into
home ownership gone awry. Makes sense, right?
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Date: 19 Feb 2009 23:34:56
From: intangible103@yahoo.com
Subject: Re: Homeowners hit the Lotto...
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Ask all the businesses and services --those that will continue to be
frequented by the homeowners who get some of this help, rather than
lose customers who blow away in the foreclosure wind-- if this is
irresponsible.
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Date: 19 Feb 2009 22:01:15
From:
Subject: Re: Homeowners hit the Lotto...
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On 18 Feb, 17:58, johnny_t <nobod...@home.com > wrote:
> I am refinancing my bankroll!
>
> Homeowners Hit the Lottery
> By Morgan Housel
>
> Of all the government measures to right the economy, President Obama's
> plan to aid homeowners seems like the most irresponsible to date.
>
> Why? Not because it helps individuals rather than big banks. Given the
> choice, I'd much rather help average Joe nine-to-fivers than, say,
> Citigroup (NYSE: C) or Bank of America (NYSE: BAC). Anyone would. No one
> doubts that losing your home is a personal tragedy. I have a heart,
> thank you very much.
>
> Nonetheless, the proposal to spend $75 billion refinancing mortgages
> that wouldn't otherwise be given the time of day is quite literally the
> epitome of subsidizing failure, without asking for anything in return.
>
> Here's a brief overview of the plan:
>
> Homeowners with high loan-to-value (LTV) ratios (more than 80%) will be
> able to refinance, provided their loans ended up at Freddie Mac (NYSE:
> FRE) or Fannie Mae (NYSE: FNM). This assistance will be offered even if
> borrowers aren't having problems paying their mortgage payments. Under
> any sensible lending rules, most banks wouldn't refinance with such high
> LTVs -- it's too risky, for obvious reasons.
> Homeowners who are at risk of defaulting on their loans -- we'll
> politely call them "people who can't afford their homes" -- will be
> eligible for refinancing aid, funded by taxpayers. As the Obama plan put
> it: "Millions of hard-working families have seen their mortgage payments
> rise to 40 or even 50 percent of their monthly income -- particularly
> those who received subprime and exotic loans with exploding terms and
> hidden fees. The Homeowner Stability Initiative helps those who commit
> to make reasonable monthly mortgage payments to stay in their homes --
> providing families with security and neighborhoods with stability."
> The plan then attempts to address a key problem we've all become
> sensitive to: "This initiative," it says, "will go solely to helping
> homeowners who commit to make payments to stay in their home -- it will
> not aid speculators or house flippers."
>
> Oh really?
> What do you call people who bought houses that exploded in value in the
> previous few years with a "subprime and exotic loans with exploding
> terms?" I'd call them speculators. What do you call people who bought
> homes without setting aside enough savings to cover an economic
> downturn? I'd call them speculators. What do you call people who bought
> homes that didn't fit their income profile? By golly, I'd call them
> speculators.
>
> No matter. We've been aiding Wall Street speculators for months now. But
> -- and this is an important but -- every dime of taxpayer money injected
> into failing banks, be it Goldman Sachs (NYSE: GS) or Wells Fargo (NYSE:
> WFC) or AIG (NYSE: AIG), is money demanded to be repaid to the best of
> their ability, and it came with equity warrants that offer taxpayers
> upside potential if and when markets recover.
>
> This homeowner aid package has no such clause. Home prices fell after a
> period of undeniable gluttony (like they do in all markets) and now
> taxpayers are bailing out speculators (yes, I'm calling them that). Yet
> if home prices rise in the future (and they will), the bailed-out
> homeowner keeps the upside. Heads, they win, tails, you lose.
>
> I'd feel considerably better if a homeowner bailout plan came with
> warrants on the upside, providing taxpayers the potential to profit for
> the risk they're taking by injecting tens of billions of dollars into
> home ownership gone awry. Makes sense, right?
Nonetheless, the proposal to spend $75 billion refinancing mortgages
that wouldn't otherwise be given the time of day is quite literally
the
epitome of subsidizing failure, without asking for anything in
return.
the $75 will cover the fees to lenders and their sevices, that it,
how could any one not know this $75B is for the bankers?
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Date: 18 Feb 2009 16:53:37
From: Arlo-Payne
Subject: Re: Homeowners hit the Lotto...
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On Feb 18 2009 2:58 PM, johnny_t wrote:
> I am refinancing my bankroll!
>
>
> Homeowners Hit the Lottery
> By Morgan Housel
>
> Of all the government measures to right the economy, President Obama's
> plan to aid homeowners seems like the most irresponsible to date.
>
> Why? Not because it helps individuals rather than big banks. Given the
> choice, I'd much rather help average Joe nine-to-fivers than, say,
> Citigroup (NYSE: C) or Bank of America (NYSE: BAC). Anyone would. No one
> doubts that losing your home is a personal tragedy. I have a heart,
> thank you very much.
>
> Nonetheless, the proposal to spend $75 billion refinancing mortgages
> that wouldn't otherwise be given the time of day is quite literally the
> epitome of subsidizing failure, without asking for anything in return.
>
> Here's a brief overview of the plan:
>
> Homeowners with high loan-to-value (LTV) ratios (more than 80%) will be
> able to refinance, provided their loans ended up at Freddie Mac (NYSE:
> FRE) or Fannie Mae (NYSE: FNM). This assistance will be offered even if
> borrowers aren't having problems paying their mortgage payments. Under
> any sensible lending rules, most banks wouldn't refinance with such high
> LTVs -- it's too risky, for obvious reasons.
> Homeowners who are at risk of defaulting on their loans -- we'll
> politely call them "people who can't afford their homes" -- will be
> eligible for refinancing aid, funded by taxpayers. As the Obama plan put
> it: "Millions of hard-working families have seen their mortgage payments
> rise to 40 or even 50 percent of their monthly income -- particularly
> those who received subprime and exotic loans with exploding terms and
> hidden fees. The Homeowner Stability Initiative helps those who commit
> to make reasonable monthly mortgage payments to stay in their homes --
> providing families with security and neighborhoods with stability."
> The plan then attempts to address a key problem we've all become
> sensitive to: "This initiative," it says, "will go solely to helping
> homeowners who commit to make payments to stay in their home -- it will
> not aid speculators or house flippers."
>
> Oh really?
> What do you call people who bought houses that exploded in value in the
> previous few years with a "subprime and exotic loans with exploding
> terms?" I'd call them speculators. What do you call people who bought
> homes without setting aside enough savings to cover an economic
> downturn? I'd call them speculators. What do you call people who bought
> homes that didn't fit their income profile? By golly, I'd call them
> speculators.
>
> No matter. We've been aiding Wall Street speculators for months now. But
> -- and this is an important but -- every dime of taxpayer money injected
> into failing banks, be it Goldman Sachs (NYSE: GS) or Wells Fargo (NYSE:
> WFC) or AIG (NYSE: AIG), is money demanded to be repaid to the best of
> their ability, and it came with equity warrants that offer taxpayers
> upside potential if and when markets recover.
>
> This homeowner aid package has no such clause. Home prices fell after a
> period of undeniable gluttony (like they do in all markets) and now
> taxpayers are bailing out speculators (yes, I'm calling them that). Yet
> if home prices rise in the future (and they will), the bailed-out
> homeowner keeps the upside. Heads, they win, tails, you lose.
>
> I'd feel considerably better if a homeowner bailout plan came with
> warrants on the upside, providing taxpayers the potential to profit for
> the risk they're taking by injecting tens of billions of dollars into
> home ownership gone awry. Makes sense, right?
All this goverment welfare makes me sick.
The goverment has messed in areas they should not mess with.
They have costed me and others like me 100s of thousands of dollars by
their bullshit welfare crap.
Aif took a dive because they can not leave anything alone.
We were set to make a ton of money until they decided to prop up compaines
that should be just chopped up and sold off.
They also never told the public about the 10 trillion withdraw from money
market accounts in less than 3 hours a few months ago. Keeping that out
of the public knowledge alone costed many millions@@
-------
* kill-files, watch-lists, favorites, and more.. www.recgroups.com
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Date: 18 Feb 2009 21:28:45
From: James L. Hankins
Subject: Re: Homeowners hit the Lotto...
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"Arlo-Payne" <arlo_payne@hotmail.com > wrote in message
news:h5nu66xel4.ln2@recgroups.com...
>
> They also never told the public about the 10 trillion withdraw from money
> market accounts in less than 3 hours a few months ago. Keeping that out
> of the public knowledge alone costed many millions@@
Awww c'mon...at least you'll be able to ride the bullet train from LA to LV.
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Date: 18 Feb 2009 19:14:25
From: Susan
Subject: Re: Homeowners hit the Lotto...
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"Arlo-Payne" <arlo_payne@hotmail.com > wrote in message
news:h5nu66xel4.ln2@recgroups.com...
> They also never told the public about the 10 trillion withdraw from money
> market accounts in less than 3 hours a few months ago. Keeping that out
> of the public knowledge alone costed many millions@@
?
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Date: 18 Feb 2009 18:17:09
From: Scott/sjakma
Subject: Re: Homeowners hit the Lotto...
|
On Feb 18 2009 8:14 PM, Susan wrote:
> "Arlo-Payne" <arlo_payne@hotmail.com> wrote in message
> news:h5nu66xel4.ln2@recgroups.com...
>
> > They also never told the public about the 10 trillion withdraw from money
> > market accounts in less than 3 hours a few months ago. Keeping that out
> > of the public knowledge alone costed many millions@@
>
> ?
http://politicalwire.com/archives/2009/02/10/how_close_we_came_to_total_meltdown.html
http://www.marketoracle.co.uk/Article8805.html
______________________________________________________________________
RecGroups : the community-oriented newsreader : www.recgroups.com
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Date: 18 Feb 2009 23:39:07
From: Arlo-Payne
Subject: Re: Homeowners hit the Lotto...
|
On Feb 18 2009 7:17 PM, Scott/sjakma wrote:
> On Feb 18 2009 8:14 PM, Susan wrote:
>
> > "Arlo-Payne" <arlo_payne@hotmail.com> wrote in message
> > news:h5nu66xel4.ln2@recgroups.com...
> >
> > > They also never told the public about the 10 trillion withdraw from money
> > > market accounts in less than 3 hours a few months ago. Keeping that out
> > > of the public knowledge alone costed many millions@@
> >
> > ?
>
>
http://politicalwire.com/archives/2009/02/10/how_close_we_came_to_total_meltdown.html
> http://www.marketoracle.co.uk/Article8805.html
From what i AM TOLD THEIR NUMBERS ARE VERY LOW.
-----
RecGroups : the community-oriented newsreader : www.recgroups.com
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Date: 18 Feb 2009 19:33:24
From: johnny_t
Subject: Re: Homeowners hit the Lotto...
|
Scott/sjakma wrote:
> On Feb 18 2009 8:14 PM, Susan wrote:
>
>> "Arlo-Payne" <arlo_payne@hotmail.com> wrote in message
>> news:h5nu66xel4.ln2@recgroups.com...
>>
>>> They also never told the public about the 10 trillion withdraw from money
>>> market accounts in less than 3 hours a few months ago. Keeping that out
>>> of the public knowledge alone costed many millions@@
>> ?
>
> http://politicalwire.com/archives/2009/02/10/how_close_we_came_to_total_meltdown.html
> http://www.marketoracle.co.uk/Article8805.html
>
> ______________________________________________________________________
> RecGroups : the community-oriented newsreader : www.recgroups.com
>
>
While I love a good story, and heck I even posted this first here on
RGP. It turns out that Kanjorski is a top tier political whack job.
If he wasn't in government he would surely be a sock-puppet here.
Another view on the story...
>http://www.portfolio.com/views/blogs/market-movers/2009/02/11/kanjorski-and-the-money-market-funds-the-facts
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Date: 18 Feb 2009 20:24:17
From: Susan
Subject: Re: Homeowners hit the Lotto...
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"Scott/sjakma" <scott@scottadams.com > wrote in message
news:52su66xoas.ln2@recgroups.com...
> On Feb 18 2009 8:14 PM, Susan wrote:
>
>> "Arlo-Payne" <arlo_payne@hotmail.com> wrote in message
>> news:h5nu66xel4.ln2@recgroups.com...
>>
>> > They also never told the public about the 10 trillion withdraw from
>> > money
>> > market accounts in less than 3 hours a few months ago. Keeping that
>> > out
>> > of the public knowledge alone costed many millions@@
>>
>> ?
>
> http://politicalwire.com/archives/2009/02/10/how_close_we_came_to_total_meltdown.html
> http://www.marketoracle.co.uk/Article8805.html
wow ty
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