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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsObama’s Refi Plan Is Another Bank Bailout, Stockman Says: 140% loan to value insanity(video + story)
http://finance.yahoo.com/blogs/daily-ticker/obama-refi-plan-another-bank-bailout-stockman-says-131457764.html(video at link)
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"This is ultimately at the end of the day a bailout for JP Morgan and Wells Fargo," and other big underwriters of second mortgages and home equity lines, Stockman says. "Those [second liens] are in great jeopardy because of homeowners way under water on primary mortgages and are likely to default or throw in the keys at some point down the road."
Furthermore, the plan would create "FHA-sponsored subprime slime" that refinances homes at up to 140% loan to value, "something even Angelo Mozilo never attempted," Stockman observes. "The White House proposed financing scheme is a lie because they will drastically underestimate the losses due to the amount of jingle mail the FHA will get from underwater borrowers who will default over the next 30 years."
Stockman isn't necessarily opposed to the government imposing fees on big banks but says it should be used for deficit reduction, not another scheme to artificially prop up the housing market. Obama's plan is "the worst kind of crony socialism," according to Stockman, who says it's time to end "government meddling" in the housing market, not to mention taxpayer-funded bailouts of the 'too big to fail' banks.
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TheWraith
(24,331 posts)"Crony socialism" wasn't a big enough tip-off that this was asinine bullshit? Or was it the complaint about "government meddling" in the banking market?
Obama3_16
(157 posts)LeftyMom
(49,212 posts)Seriously.
TheWraith
(24,331 posts)...that they'll turn to right-wing drivel like this, drank straight from the nipple of the free-market true believers.
Obama3_16
(157 posts)can avoid foreclosure by using this it will be a HELL OF A LOT BETTER use of money than bonues to the fucksticks at Goldman Sachs.
LeftyMom
(49,212 posts)Who gives a flying fuck what he thinks?
stockholmer
(3,751 posts)LeftyMom
(49,212 posts)SunsetDreams
(8,571 posts)"Former U.S. politician and businessman, serving as a Republican U.S. Representative from the state of Michigan (19771981) and as the Director of the Office of Management and Budget (19811985)."
WOW. No agenda there.
Tarheel_Dem
(31,234 posts)WilliamPitt
(58,179 posts)You used your 3,000th post to promote Reaganomics.
Old and In the Way
(37,540 posts)OT, did you get the HC newsletter today? Lead story is about Clarance Thomas...seems the school is honoring this POS.
WilliamPitt
(58,179 posts)Yeah.
stockholmer
(3,751 posts)re-inflate the housing bubble with such instruments as 140% to value re-fi's is utter madness. It will result in billions in fraud, and ultimately, hundreds of billions in further bailouts for the banksters, as they leverage up their new found 'gifts'.
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http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x584737
David Stockman Says US Has Run Out Of Runway On Debt, Compares The Treasury Market To A Roach Hotel
http://www.zerohedge.com/article/david-stockman-says-us-has-run-out-runway-when-it-comes-raising-debt-ceiling-endorses-tobin
David Stockman has become every major news organization's (and CNBC) go to critic when it comes to bashing each stupid idea currently preoccupying the DC C-grade soap opera artists. Obviously, at the current time this would mean the budget deficit and the debt ceiling. On both those issues, Stockman's position is well-known. Today, when asked by Bloomberg's Tom Keene to compare the current deficit with that of Reagan's, Stockman spares no praise: "The essential distinction is that we had a clean balance sheet then - $1 trillion of national debt. Today we have $14 trillion in national debt.
We have used up all the runway, so to speak. We have piled our national balance sheet with so much debt that the government is at the very edge of a huge solvency crisis that isn't going to be addressed unless both parties dramatically change their position, and I see no sign of it. So we're going to have a gong show." Stockman also opines on the Monetary Roach Hotel that the US debt has become: "We have not had a two-way bond market. We have had a rigged market that has been dominated by not just the Fed, but all the central banks. Today over half of the $9 trillion in publicly-held debt is in central bank vaults.
I call it the 'Monetary Roach Hotel.'" Lastly, on a proposal endorsed by Zero Hedge back in the summer of 2009, namely the introduction of a Tobin tax for Wall Street's high-frequency casino: "Wall Street needs to have a transaction tax. I know they won't like it. A tax on every trade, a small amount, would go a long way to putting money in the coffers." As usual: absolutely spot on recommendations, which have little to no chance of occurring before the final bond crash finally takes away the multiple-use heroin needle from both DC and Wall Street.
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"I think the more important thing is the annual deficit to GDP. It should be a balance over the cycle, but we have not had any balance over the cycle for decades We were petrified in 1982 when the deficit went to 6%, the highest ever seen. Reagan, although he is known as a great tax cutter, signed a huge tax increase bill in 1982 at the bottom of the worst recession that we'd had up until then and raised taxes by the tune of 1.5% of GDP.".............................................
sabrina 1
(62,325 posts)members seem to have seen the light over the years. Brb!
DevonRex
(22,541 posts)RW BS? Now, I know you're smart. So what's up with that, eh?
ProSense
(116,464 posts)Are people really trying to push an article with this title?
RW drivel? Really?