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| Renegotiate mortgages indeed. |
Tuesday, October 07, 2008
22 comments:
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Anonymous said...
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Dang! And I was hoping I was wrong.
righty gomez -
10/7/08, 9:20 PM
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Rodger the Real King of France said...
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That liar Obama starts by blaming Bush and McCain for refusing to regulate and McCain responds by saying he'll renegotiate home mortgages. No wonder I hate the stupid sumbitch. I'm watching B-17's on the Hitler Channel.
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10/7/08, 9:21 PM
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Anonymous said...
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W.A.S.S. McCain is missing the targets.
righty gomez -
10/7/08, 9:46 PM
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Anonymous said...
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Did he really say that? I'm not watching. Why are we voting for this jamoke again? Both them clowns can do all the renegotiating they want, and I guarantee it'll end up costing me money.
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10/7/08, 9:49 PM
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Timbeaux said...
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Give him a break, he finally went after Obama for Fannie and Freddie support (although he is terrible as an attack dog, it's just not in his nature).
Getting people out of ARMs and into regular fixed rate loans is not a bad thing. This whole crisis is largely based on ARM loan sales and the Fed raising rates 17 straight times. -
10/7/08, 10:01 PM
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Anonymous said...
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"Getting people out of ARMs and into regular fixed rate loans is not a bad thing"
It is not a bad thing if both sides of the contract agree on a modification of the contract. It is the end of the world if in the USA a financial agreement can be rewritten by people who are not parties to the contract because they think it is a good thing. I will never allow one dollar of mine out of my tight fists if the promises of the person getting my dollar can be rewritten outside of my control absent bakrupcy of the counterparty. and no one else will either. -
10/7/08, 10:29 PM
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Timbeaux said...
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Hmmmm......the govt is going to buy these bad loans whether we like it or not, and the loans are truly going to be worthless if the mortgagor cannot pay the note to the mortgagee, as all these contracts require. If the loans are renegotiated such that the delinquency rate is cut substatially, then the Treasury will truly reap a huge profit in the resale of rehabilitated loans. The chances that of any of the money will end up in your or my "tight fists" is almost zero regardless, the best you can pray for is that it will be used to pay off national debt.
I'm pissed as all hell that we are buying these pieces of garbage to bail out Barney Frank and Harold Rains. But if we are going to buy them, we might as well invest in the quality of the assests. Renegotiating terms is not renegotiating the principal price. I'm watching Fox and they are getting it wrong as well. -
10/7/08, 10:43 PM
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Anonymous said...
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Fuck. Me. Running.
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10/7/08, 10:46 PM
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Anonymous said...
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Look, if the govt buys the loan they can renegotiate the terms with the borrower however they want. Lots of people are talking about changing the terms of loans in private hands. If that happens there will be no more loans. Period.
You cannot abrogate the rights of contract without consequences. Like going back to the dark ages consequences. Best. -
10/7/08, 11:05 PM
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Timbeaux said...
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I think a lot of people are misreading what he said, McCain's not much better at communication than W. If the plan is to dictate renegotiation to private contracts, then let the tree of liberty be nourished. But that's not what he's talking about, he's saying restructure the terms of the loans bought by the Treasury. The bad loans are the problem, and they need to be fixed or a govt solution is merely a delaying action. Buying them doesn't fix them, it does nothing about the delinquency rates that are making the value plummet.
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10/7/08, 11:21 PM
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Anonymous said...
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So, another boring debate between two Democrats, after which both sides will claim victory. All I heard out of Obama is "Ka-ching! Ka-ching! Ka-ching!" His answer to every problem is to spend vast amounts of our money or force somebody else to spend vast amounts of their money. Tonight, his health care program is to force the health care and insurance industries to pay for the health care of poor people; very neatly demonstrating that he has learned exactly nothing from the mortgage finance crisis. That's not really surprising considering the fact that all of the Democrats ideas were set in stone when Carl Marx published Das Capital.
In short, Obama is exactly the same as every Democrat Presidential candidate for the past forty years. So can someone tell me exactly how he is different (other than the color of his skin) and how he is the candidate for change? Sure sounds like the same ol' same ol' to me.
McCain mostly managed to pretend that he is a Republican.
GrinfilledCelt -
10/7/08, 11:33 PM
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Anonymous said...
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The next "wave" will be another round of foreclosures, now that the banks have funding, and they can afford to go after them, and the wave after that will be the collapse of commercial real estate (or one will precede the other...but who friggin cares?)...Rodge...I think you're right: Drinks and Chicken Wings are the answer.
I've been dutifully paying on my mortgage(s) for years... and now you tell me that had I stretched them out and waited long enough, I could have renegotiated? What a dumb shit am I.
I guess that holds true for the fact that I actually get my ass out of bed every day and go to work.
WASS
Cuzzin Rick -
10/8/08, 12:19 AM
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Anonymous said...
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My new amendment:
1. You work for the gummint, you can't vote.
2. You get money from the gummint, other than social security, you can't vote.
3. You advocate gummint stepping into private contracts, you can't run for president. Hell, you're a socialist, go to Sweden or some place colder. -
10/8/08, 12:29 AM
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Anonymous said...
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PS: Only reason I'm leaving social security alone is coz that grand socialist Roosevelt forced it upon you. Not your fault. Perhaps. Swear to give up the COLA's tho, and you'll retain the franchise.
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10/8/08, 12:35 AM
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Anonymous said...
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No where in the constitution dose it say home ownership is a right or health insurance, I have looked, read it several times can't recall it being in there. I hope the B-52's and helicopers are spinning up at BARN ARMY Head Quarters. Private ("Give me liberty! or give me Death") Spanky reporting for duty.After tonite we are in for a long long 4 years.
Spanky -
10/8/08, 1:17 AM
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Anonymous said...
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Seems to me that if renegotiating the terms of mortgages going into default were a good business idea, banks all over the country would be doing it and they would do it better than a bunch of government employees.
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10/8/08, 2:29 AM
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Anonymous said...
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If you think Mac is bad, read this from last week:
Biden -"Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe."
Adjust principle and interest... why bother with ink, a pencil will do.
ack.
tomw -
10/8/08, 5:51 AM
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Chuck said...
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My new amendment:
1. You work for the gummint, you can't vote.
2. You get money from the gummint, other than social security, you can't vote.
3. You advocate gummint stepping into private contracts, you can't run for president. Hell, you're a socialist, go to Sweden or some place colder.
Are you shitting me? #1 means I can't vote, a combat vet whose served this country for 16 years.
#2 is okay, and #3 limits the current constitution with regards to who can run. FDR was a socialist, but did good to bring us out of the depression.
Here's the shocker:
No one has the "right" to vote for anything. The constitution says that the president shall be elected based n the votes of the states, the states individual constitutions say that citizens can vote, and how those votes will be tallied, and how the electoral votes will be distributed.
Nowhere did the founders and framers intend for John Q. Public to elect the president.
Given that our public schools are idiot farms anyway, doesn't it seem smarter for the elected reps of the states, assumable educated and learned men, with educated and learned advisers, to be the ones who elect the president. At least they're likely to be aware when they are being pandered to. -
10/8/08, 6:59 AM
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Anonymous said...
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That looney liberal moonbat wasn't just talking about renegotiating interest rates, no. He said renegotiate the mortgage to the value of the home.
That means, if some asshole bought a home for $350k and now its only worth $250k, well, the government will pay the lender the $350k and renegotiate the asshole a $250k loan. Net loss to you and me, $100k.
Multiply that a couple few millions times.
What a disaster McCain is. -
10/8/08, 7:17 AM
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Anonymous said...
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Simpler set Of rules for voting.
Citizen, 18+, no felons, Pay taxes, No welfare recipients.
Representation without taxation leads to those who don't contribute spending the money of those that do.
Mark -
10/8/08, 8:01 AM
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Anonymous said...
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McCain truely does not know that he gets to wear a fine wool suit and work in an air conditioned office because of private property and rule of law. He seems to think that the US economy can be run like the Navy.
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10/8/08, 9:46 AM
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Anonymous said...
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Folks,
We got what we got as it relates to mortgage loans that should NEVER have been made. Makes me livid--I saw them being constructed and wondered what the investors could possibly be thinking!! Turns out they were counting on packing them up and selling them to rubes that believed in the rating agencies and the companies issuing the credit insurance.
That said, based on years of experience working out bad loan and real estate assets for a great big financial institution, IF the borrower can pay a renegotiated obligation, it is usually in the best interest of the owner of the financial asset to try to make something work--unless the loan is substantially over-collateralized--most of the problems are NOT.
Do the math. Take the discounted present value of a revised mortgage cash flow stream (be sure to use a decent market discount rate) versus the cost of foreclosure, management, rehabilitation of the property, maintenance and taxes and utilities. The proud owner of a foreclosed property that was over leveraged in the first place (that will be us taxpayers after the bailout) is better off redoing the mortgage loan and keeping the folks that want the house and can pay a reworked mortgage loan.
McCain may not have done a good job of articulating the message, but the above is the truth about what the gummint will need to do once it take ownership of all that "brown" paper.
Many of the loans will be found to be absolute trash because there is no income stream from the borrower available to pay ANYTHING! Us taxpayers will end up OWNING those properties, and at the end of the day, depending on what they are and where they are located, we will do very well to recover fifty cents on the dollar because of market depreciation and holding costs.
MHO, of course. -
10/8/08, 10:48 AM
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