Comments on: Gretchen Morgenson’s bizarre defense of Ed DeMarco http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37393 Wed, 28 Mar 2012 07:04:48 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37393 eastcoastguy200, what objections?

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By: EastCoastGuy200 http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37388 Wed, 28 Mar 2012 04:42:28 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37388 “And there are many career public servants, up to and including Tim Geithner, who can’t stand DeMarco and who think he is being deliberately obstructionist here.”
Mr Felix, it is hilarious the kind of public servant you are invoking to show Mr. DeMarco as obstructionist. Tim Geithner, after all, overrode all objections inside the Treasury and the Fed and forced AIG to pay all CDS contracts in full to all the Wall Street banks even though AIG could have negotiated to pay much less. That was a backdoor bailout Tim Geithner is directly responsible for. And it was the tax payers that got stuck with the bill.
How can anyone (other than you) just trust in Tim Geithner that this not another instance in which he is trying to get Wall Street another bailout at the tax payer’s expense?

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37360 Tue, 27 Mar 2012 04:33:27 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37360 File under completely predictable mark 2. Eissenger mangles a story so thoroughly that it bears no relation to what he claims it is:

http://www.calculatedriskblog.com/2012/0 3/lawler-on-possible-fannie-and-freddie. html

One should also have seen the red flag given the quote from Moodys that maybe possibly up to 500,000 homes might make sense for. Put differently that is for significantly more than 90% of cases it won’t help. So after all the arguments over whether it makes sense morally or not, the real question boils down to whether taxpayers want to subsidise yet more losses at Frannie. Note these are actual losses not the “losses” that people keep insisting got socialised at investment banks in the US

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37321 Mon, 26 Mar 2012 03:41:48 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37321 Let’s take a step back for a moment, and look at the political implications, rather than fight the issue on its merits – in political terms the case has already been made and won by the opponents of bailouts for mortgage borrowers. That very issue inspired Santelli’s famous rant and the emergence of Tea Party people – literally over night – in their millions.

Placing the matter back on the front burner now could just be the thing that re-ignites the spirit of open rebellion, and could just maybe unite OWS and Tea Party into an irresistible insurgency. One can only hope – a Khmer Rouge disposition of the Wall Street types is something only likes of Danny Black would object to, isn’t it?

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By: TFF http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37318 Mon, 26 Mar 2012 01:19:46 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37318 SelenesMom, you’ll find some data here:
http://www.slate.com/articles/business/m oneybox/2012/01/how_small_time_house_fli ppers_made_the_housing_bubble_much_much_ worse_.html

A surprising percentage of new mortgage originations at the peak were on multiple homes, nearly twice what it was as the start of the decade.

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By: SelenesMom http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37309 Sun, 25 Mar 2012 22:01:56 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37309 @robertjstrupp It’s not clear that anyone in the banks, much less anyone at high levels, is incentivized to “keep qualified borrowers in their homes, stabilize communities, prevent blight” etc. In fact, some in the banks are likely incentivized to maximize balances (principal). Again, sure would be nice if someone had hard data to help us out with here, since I don’t expect anyone to take my wild speculation for anything other than that.

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By: Sechel http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37305 Sun, 25 Mar 2012 20:21:35 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37305 @ Felix.
Even the Dallas Fed admits congress pushed Fannie Mae to buy sub-par mortgages.

Congress pushed Fannie Mae and Freddie Mac,
the de facto government-backed mortgage giants, to become the largest buyers of these specious mortgage products

http://dallasfed.org/assets/documents/fe d/annual/2011/ar11b.pdf

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By: robertjstrupp http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37304 Sun, 25 Mar 2012 18:17:27 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37304 If principal reduction were indeed such a bailout to the banks, why aren’t banks clamoring for it? They are not. Principal reduction to qualified borrowers, keeps them in their home, stabilizes communities, prevents blight and loans continue to be classified as performing.
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By: SelenesMom http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37303 Sun, 25 Mar 2012 18:00:09 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37303 “vast majority of borrowers knowingly bought more home than they should”

Sez who? Let’s see a source for this. Sure, some borrowers knowingly bought more home than they should. Others lost jobs or lost income — this is the majority of borrowers I know, but let’s get some evidence here before relying on anecdotes. Finally, we’ve got the poor saps who were duped into buying more home than they should have — people with little financial sophistication, and in some cases limited command of English, who were told, “don’t worry, you can always refinance” and the like.

That’s three categories of borrowers, and I don’t know what the breakdown is, and I doubt anyone else really does either at the moment. If anyone does, let’s see some data. I suspect we have a lot more borrowers who have lost borrowing power than we do borrowers who were just hoping somehow to magically flip their homes. But I could be wrong. Show me.

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By: Moopheus http://blogs.reuters.com/felix-salmon/2012/03/25/gretchen-morgensons-bizarre-defense-of-ed-demarco/comment-page-1/#comment-37302 Sun, 25 Mar 2012 17:54:40 +0000 http://blogs.reuters.com/felix-salmon/?p=12667#comment-37302 “And there are many career public servants, up to and including Tim Geithner, who can’t stand DeMarco and who think he is being deliberately obstructionist here.”

Sure, and Geithner had the same attitude toward Elizabeth Warren and anyone else not sufficiently subservient to Wall Street interests. I mean, if Geithner thinks he’s being obstructionist, that suggests a point in his favor, because in Geithner’s world, “obstructionist” means “preventing the flow of funds to banks.” The Treasury and the Fed have made it pretty clear they want to help the banks protect the value of their 2nd lien loan books.

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