Comments on: Will the government’s mortgage settlement work? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: sherman1002 Sat, 26 Feb 2011 02:50:47 +0000 i really dont see why the government is on a witch hunt to punish these banks. Barney Frank was the one 10 years ago saying we ahd to offer more loan products to people with less than perfect credit. Rather than taking the blame the government keeps trying to blmae and punish everyone else. Forums like discuss this mroe in detail.

By: hsvkitty Thu, 24 Feb 2011 20:26:27 +0000 Exactly, BlueTail7. The Government wants to be seen as doing something… but it is all cart after the horse boondoggling and will probably end up helping very few and the wrong people. (flippers rather then homeowners … who have the money,savvy and greedy guts to get in line first … and wanna bet there will be hidden fees and banks will end up prospering rather then this be a “punishment”)

They continue throw life lines to banks and crumbs to the very people the banks hurt… nice… and saying the ultimate prize is meaningful help for homeowners is nauseating. (pardon my skepticism, but thus far it looks like “Let’s Make a Deal” with a booby prize rather then help)

They want to prove that in a year… I guess they will have a year to make up a bunch of stats to “prove” some good was done. In that time there will still be oodles of foreclosures, housing prises will still be falling and
the financial sector will still be telling everyone that the recession is over and everything is hunky dory. (Those who are unemployed and losing their homes never mattered or this mess would not have happened, would it)

The Bloomberg piece heralding Geithner that I read at the same time as this almost made me throw up in my mouth…

By: BlueTail7 Thu, 24 Feb 2011 18:17:12 +0000 A comparable amount of loan modifications or principle reductions would equal what exactly? With trillions of dollars in real estates values lost, 20 billion, or even 100 billion, will not touch what is needed to get people above water again. If a home in Las Vegas lost, say 50% of it’s value (it’s most likely worse than that too btw), and the banks do a loan mod and/or reduce principle by 10%, what good will it do? Not much.

Metaphorically speaking, if you’re 20 feet under water, and this new buoyancy brings you up a foot or two, breathing will not get any easier.

By: djiddish98 Thu, 24 Feb 2011 18:16:54 +0000 Thought’s on Mish’s analysis?

http://globaleconomicanalysis.blogspot.c om/2011/02/obama-seeks-20-billion-in-civ il-fines.html

Granted, I’m sure those numbers are probably the lowest possible benefit for each sub-section (since second homes, etc are unlike to qualify for a program like this), but I think he’s right that $20 billion spread out doesn’t make much of a difference in the housing market.