Clinton proposes Greenspan lead foreclosure group

Source: Reuters

By Jeff Mason

WHITE PLAINS, New York (Reuters) - Former Federal Reserve Chairman Alan Greenspan and other economic experts should determine whether the U.S. government needs to buy up homes to stem the country's housing crisis, Democratic presidential candidate Hillary Clinton will propose on Monday.

Clinton, a presidential candidate and senator from New York, said the Federal Housing Administration should "stand ready" to buy, restructure and resell failed mortgages to strengthen the ailing U.S. economy.

"Just as it has in the past, this kind of temporary measure by the government could give our economy the boost it needs and families the help they need," Clinton will say, according to excerpts of remarks prepared for a speech in Philadelphia.

Read more: http://www.reuters.com/article/politicsNews/idUSN2430663920080324

---

This is the same man that recommended ARMs in 2004. The same man who's lax banking supervision led us to this problem to begin with.

With Clinton, we just get more of the same.

Group homes. How they would endear themselves to everybody on the block when they shove their federal lawyers down everybody's throat.

:dunce:

money. Our government, under the so-called conservatives, has gone on a wild spending spree and here it's said that both our nominees are proposing a continuation of this wild spree by having enough to buy that many homes up in addition to the bills the conservatives ran up with a continuation of this crazy war that doubles as a money pit. This just confirms we're screwed with the SMALL degrees of differences being between all candidates with all parties inclusive. wtf?
:wtf: :crazy:

Alan Greenspan, who led us in to this housing kerfuckle. Right?

Greenspan Is Concerned About 'Froth' in Housing

By EDMUND L. ANDREWS
Published: May 21, 2005

....Mr. Greenspan emphasized that he sees no sign of a nationwide housing bubble, but he acknowledged concerns over "froth" in the market and pointed to a big increase in speculation in homes - particularly in second homes. As a result, he said, there are "a lot of local bubbles" around the country.


.....

http://www.nytimes.com/2005/05/21/business/21fed.html

... of how we got into this mess. The guy who helped get us into this should NOT be anywhere near the solution, as he'd likely frame all his decisions and policies in a way to avoid accepting his own culpability.

Sorta like those who got us into Iraq being the least qualified to get us out.

Only lying under neath all the glitz was a disaster waiting to happen, which began with losing our government to the republicans and ended where we are today. 4000 dead soldiers & a recession.

... as to what's wrong with the economy, and how the Clinton administration does bear some responsibility.

What baffles me, though, is that I thought it has become common knowledge that Greenspan screwed the pooch, and is largely to blame for helping to create the housing bubble. And the guy who created the problem should be conflicted-out of participating in the solution.

Though rising, home values were still within historic norms in 2000. Robert J Schiller has a neat analysis on-line here,

Housing, adjusted for inflation (and on Schiller's index that baselines home values at 100 in 1890), Clinton left with housing prices below their 1980's peak. It was not until George Bush, our own personal Nero, that the bubble inflated beyond all historic comparisons. By 2006, prices index to 200, having never before risen above around 125. Again, by Shiller's analysis, housing is more than 50% overinflated and likely to fall by that and more over the next several years.

I can't figure which smilie to use.

:sarcasm:

or

:argh:

or

:rofl:

:eyes:

Don't seem to see how much the republicans really want her as the nominee! I mean if McCain wins, they are happy, but if by some miracle Hillary pulls off the nomination, and wins the whitehouse, what the hell will change? Nothing. Business as usual, with the same bunch of crooks Bush put in charge!:mad:

that jacked up the prime rate during the last year of the Clinton adminsitration chasing imaginary inflation????

yup

Democrats know full well Greenspan is mostly responsible for the housing crisis.

I wonder how many Clinton supporters are going to chime in and support this.

Another one of her great "committee" ideas.

Why make the person who aided this recession messin charge of cleaning up the problem?

BTW - expect Andrea Mitchell to skew heavily against Obama or more pro-Hillary if this goes through...which I doubt because it just a feeble attempt to get the Richardson endorsement out of the news.

And they keep proving it every day

the guy needs to be tar and feathered not put on a God Damn commission to "study" the housing crisis

Jesus f'n christ! She wants the same guy who helped bring this country to the economic state it is in to help with the mortgage crisis. Fuck her!

The perverse Clintonian logic strikes again.

The idea of having the government bail out the economy at the consumer level --- the mortgage level, rather than at the other end, the Bear Sterns et al end, is not crazy. Were all the money that the Fed is clearly prepared to throw at investment firms, after their crazy criminal behavior, to be spent instead on stopping the housing free-fall, it seems to me a much larger segment of the economy and of society could be be salvaged. I am not particularly interested in Hilary's political career at this point, but I have been waiting for a proposal of this kind to be floated since last summer. To see the other end getting a free ride home instead is just effin galling. Here's someone else hopping mad: http://market-ticker.denninger.net/

proposal sucks. what are the chances that Greenspan would actually agree to do something for "us" -- the little guys. i'd much rather see someone like John Edwards or Bill Richardson in this position. someone i can trust to actually DO SOMETHING instead of "studying the problem and deciding it's better not to interfere," which is totally what i'd expect from Greenie.

She just doesn't learn. AUGH!

:sarcasm:

...can someone clear this up for me...

"Clinton, a presidential candidate and senator from New York, said the Federal Housing Administration should "stand ready" to buy, restructure and resell failed mortgages to strengthen the ailing U.S. economy."

Does she want to:
Buy the actual mortgage notes from the bank, make the loans where people can stay in the home, and then sell the loan back to a "trustworthy" bank?

Or...

Buy the homes/loans that have been forclosed to take them off the books of the failing banks, and then resell the homes on the market?

Either I'm tired or it's not quite clear??

.... Representative Barney Frank, Chairman of the House Financial Services Committee.


But, today, Hillary Clinton is talking up inserting Alan Greenspan back into the process, of all things.



Clinton proposes Greenspan lead foreclosure group

By Jeff Mason
March 24, 2008






Senator Clinton, Alan Greenspan is largely responsible for this debacle. To put him back in charge is making the same mistake and expecting a different outcome. In short, insanity.




THIS is why Greenspan should not be allowed anywhere NEAR the plan to repair the sorry outcome of his failed tenure:


What Created This Monster?

By NELSON D. SCHWARTZ and JULIE CRESWELL
March 23, 2008, NYT







By the way, since the subject is the economy, would Senator Clinton care to clarify her murky stance on mountaintop removal coal mining other than this comment:







We need a clean break from the lingering toxic fallout from the Clinton years.

This simply cannot be true....:puke:

What has Hillary been smoking? :smoke:

So what if Greenspan is overwhelmingly responsible for this fiscal nightmare? And so what if his bullshit Randian economic philosophy has led to an unambiguously disastrous financial environment?

You Obamacultists will attack Senator Clinton no matter what she does, even if she makes a blindingly foolish economic proposal.

If he the first guy you're going to ask to fix it?






I didn't think so.

Greenspan, the architect of ruin for so many millions of Americans, is uniquely positioned to dredge this fiscal shitstorm from the cesspool of Bushanomics! To say otherwise is to court madness!

What alternatives has Obama proposed? Not appointing an economic dinosaur to solve the problem? Sure, if that's your idea of sound policy!

Kind of like having botched surgery and then inviting the doctor back to finish you off.

April 1 is about two weeks away. Maybe HRC is starting her jokes a little early.

(And I find it ironic that in all the criticism of "Obamabast," or whatever the hell it is, even the poster seems to think this is a bad idea. I guess you could also say, "Never pass up a chance to piss on Obama supporters." :eyes: )

Maybe I should use "Obama 08" as my subject line in every posting and precede and follow the body of every post with the same?

There's subtle Wilde-style sarcasm, and then there's shovel-to-the-head sarcasm. I thought that I was pretty resoundingly going for the latter...

:spray:

I want so much to shop at your store! Pay day is next week and there are 3 shirts I want to buy for my six year old. She is very tall (52 inches) and thin, do you think the kids medium or large would be better? Thanks!

You must love Bush's policy in Iraq.

Oh, right> You're a Hilbot. Of course you Like Bush's policy in Iraq.

:)

IMO it's pretty rare that someone speaks favorably of a policy by describing part of it as a cesspool.


Jeez--how obvious do I have to be?

There's some that consistently think Onion pieces are true too.

:applause:

Who's with me?!?!

If they don't see it, they automatically assume your being serious.

At least get Robert Reich from that era.

Or better Ravi Batra:
"Greenspan's Fraud: How Two Decades of His Policies Have Undermined the Global Economy "

All this wailing about Greenspan, no one noticed she proposed TORT REFORM in the middle of that?
Yeah, we need to save the corporations! They are endangered by these lawyers!

Alan Greenspan almost single handedly created the asset bubble driving this "recession/depression" or whatever you want to call it.

Putting him ANYWHERE other than "out to pasture" is foolhardly at best, reckless at worst.

Stupid, stupid, stupid move.

FHA needs to be involved.

upon for words of wisdom?

it was his low rates that caused the housing Boom

HRC '08 "it's my stupid economy!"

she is soooooo bought and paid for.

she is moron* with boobs.

I mean, if you're going to bring back Bush Rejects, who better to understand the situation in Iraq?

She's really working my last fucking nerve.

http://my.barackobama.com/page/community/post/samgrahamfelsen/gGBnCJ

One Year Ago: Obama proposed the summit Clinton is offering today
By Sam Graham-Felsen - Mar 24th, 2008 at 11:28 am EDT

Almost one year ago to the day, Barack Obama sent a letter (below) to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson urging them to convene a homeownership preservation summit. Today, Clinton is proposing essentially the same thing.



One key difference, however, is the diversity and representation that Obama called for – not just some of the same people who helped to create these problems or have a direct financial industry stake in the outcome: “I urge you immediately to convene a homeownership preservation summit with leading mortgage lenders, investors, loan servicing organizations, consumer advocates, federal regulators and housing-related agencies to assess options for private sector responses to the challenge.”



Here's the letter Senator Obama wrote to Bernake...

March 22, 2007

The Honorable Ben Bernanke
Chairman
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, D.C. 20551

The Honorable Henry Paulson
Secretary
U.S. Department of Treasury
1500 Pennsylvania Ave, NW
Washington, D.C. 20220


Dear Chairman Bernanke and Secretary Paulson,

There is grave concern in low-income communities about a potential coming wave of foreclosures. Because regulators are partly responsible for creating the environment that is leading to rising rates of home foreclosure in the subprime mortgage market, I urge you immediately to convene a homeownership preservation summit with leading mortgage lenders, investors, loan servicing organizations, consumer advocates, federal regulators and housing-related agencies to assess options for private sector responses to the challenge.

We cannot sit on the sidelines while increasing numbers of American families face the risk of losing their homes. And while neither the government nor the private sector acting alone is capable of quickly balancing the important interests in widespread access to credit and responsible lending, both must act and act quickly.

Working together, the relevant private sector entities and regulators may be best positioned for quick and targeted responses to mitigate the danger. Rampant foreclosures are in nobody's interest, and I believe this is a case where all responsible industry players can share the objective of eliminating deceptive or abusive practices, preserving homeownership, and stabilizing housing markets.

The summit should consider best practice loan marketing, underwriting, and origination practices consistent with the recent (and overdue) regulators' Proposed Statement on Subprime Mortgage Lending. The summit participants should also evaluate options for independent loan counseling, voluntary loan restructuring, limited forbearance, and other possible workout strategies. I would also urge you to facilitate a serious conversation about the following:

* What standards investors should require of lenders, particularly with regard to verification of income and assets and the underwriting of borrowers based on fully indexed and fully amortized rates.

* How to facilitate and encourage appropriate intervention by loan servicing companies at the earliest signs of borrower difficulty.

* How to support independent community-based-organizations to provide counseling and work-out services to prevent foreclosure and preserve homeownership where practical.

* How to provide more effective information disclosure and financial education to ensure that borrowers are treated fairly and that deception is never a source of competitive advantage.

* How to adopt principles of fair competition that promote affordability, transparency, non-discrimination, genuine consumer value, and competitive returns.

* How to ensure adequate liquidity across all mortgage markets without exacerbating consumer and housing market vulnerability.

Of course, the adoption of voluntary industry reforms will not preempt government action to crack down on predatory lending practices, or to style new restrictions on subprime lending or short-term post-purchase interventions in certain cases. My colleagues on the Senate Committee on Banking, Housing and Urban Affairs have held important hearings on mortgage market turmoil and I expect the Committee will develop legislation.

Nevertheless, a consortium of industry-related service providers and public interest advocates may be able to bring quick and efficient relief to millions of at-risk homeowners and neighborhoods, even before Congress has had an opportunity to act. There is an opportunity here to bring different interests together in the best interests of American homeowners and the American economy. Please don't let this opportunity pass us by.


Sincerely,


Barack Obama
United States Senator

:wtf:

This is the guy that put us in this mess.

...

Fookin' brilliant!

Greenspan caused the crises and privately makes big profits from this disaster.

http://dailybriefing.blogs.fortune.cnn.com/2008/01/15/greenspans-masterful-timing/

So, he illustrates how our system works and he proves, that he really understands how this nation works. Taxpayers pay for the 'mistakes' the men at the top made and they keep cashing in.

He's the right man to take this position, just like Kissinger was the right man for the 9/11 commission!

:sarcasm:

How stupid does she think the public is, exactly?

From the lies, to her economic plans, and her delusional thought that she has any respectable way to win. Totally without class.

has been a disaster. How anyone of sound mind and a true democrat can support this woman is beyond me and yes I know about her vote (one of the last to be cast) after the bill had safely passed to mollify her supporters and having first voting for the bill.

:banghead: :crazy:

Greenspan? Only in America would the Randian douche who destroyed the housing market be put in charge of fixing the economy. Everywhere else has public education, I guess.

Why not Greenspan since he and Mr. Hillary Clinton created this mess with the "low interest is good for the economy" policies of ten years ago that set all of this in motion. Good for the banks who were loaning to the corporations. Corporations like Enron.

The crooks got rich. Everyone else got poorer. But bought houses just the same. After all, with low interest rates, everyone can afford a house. The problem was they created "creative financing" so everyone could. Knowing that eventually the interest rate would go up and people would be foreclosed on - there is no middle class left in this country. That is what happens in oligarchy. The Clintons and the Bushes and Alan Greenspan believed in oligarchy. And still do.

She wants to buy these mortgages and then sell them again? With or without the homeowners?

They're bailing out the crooks. Why not bail out the victims? Instead of buying the homes, why not just cover the difference on the interest rates on these fraudulent loans. And that's what they were and are.

Mortgage brokers and real estate brokers knew perfectly well the majority of these people could not afford homes. But, well, they were nice and easy commissions.

Hillary Clinton does not represent the people. She represents the crooks.

in the Clinton administration, using the same reasoning. He knows the most about how we got into this mess, right?

Who advises Clinton? Bush?

http://www.nytimes.com/2008/03/24/us/politics/24text-clinton.html?_r=1&adxnnl=1&oref=slogin&pagewanted=all&adxnnlx=1206381777-tBSVqfF5U8DuVXDCQSw6bQ

"That's why I'm proposing this emergency working group on foreclosures. It could be led by a distinguished nonpartisan group of economic leaders, like Alan Greenspan, Robert Rubin, Paul Volcker. It's the kind of proactive step that would help reestablish confidence in our economy, by showing that the president and the administration is taking our economic crisis seriously."

Clinton could manage to piss off one of her best apologists with this move.

:wtf:

Perhaps Rummy can council HRC on Iran:shrug:

This seals it.

That's it. I'm done.

Not only did Mr. Greenspan help engineer the housing bubble, he profited from it. He's gone to work for a hedge fund that made something like $15 Billion off of betting on the bubble bursting. This is the same guy that "fixed" Social Security under Reagan. I've been more than patient, but this takes the cake.

:banghead:
http://www.youtube.com/watch?v=rKr8QzjixJ4
To paraphrase Tom Hanks: HILLARY! you need to start using your head, that's your lump that's three feet above your ass.

After all, she's married to Alan.

There was a time that conmen/criminals/incompetents like Greenspan would be tarred and feathered (i.e., stripped naked, dunked in hot tar and then had feathers dusted all over them, and then ridden out of town on a rail). But that was when Americans had gumption.

does her scumbag campaign actually believe people have not caught on to greenspan's coruptness, apparently no -screw you hillary

*dumbass appointing Kissinger to the 9/11 Commission!

Hell, Hillary could just have cost herself the election with this one. Putting the guy in charge who put us in this mess is like giving the alcholic the key to the liquor cabinet. :mad:

911 Commission! Excellent anology if I do say so myself!

just like the war has gone well for Bush and Cheney.

Great idea, Hillary!! :sarcasm:

Why would we want two of the neoliberal conspirators to find a "solution?"
:mad:

after all, we all know how the media likes to spin and extrapolate.

So I checked her website, and read the press release about it. Link is http://www.hillaryclinton.com/news/release/view/?id=6693

Quote:
The Working Group should be headed by a non-partisan group of eminent leaders like Alan Greenspan, Paul Volcker, and Bob Rubin—each of whom supports one of the remaining candidates in the Presidential race.

OK, there it is. It's even in her official press release, in black & white. This is not a wild media story.

SICK!

I can see the freedom medals being handed out now.

I can't believe Obama is behind in the Pennsylvania polls!

Bail out my friends on Wall Street. Screw the homeowners. And fully privitize SS by investing the SS trust fund into "safe" stocks.

There, now I've saved you the time and money from forming a commission with Alan Greenspan.

eom

Just when you think you've heard it all....now this. :crazy:

Alan Greenspan....The man whom history will hold most responsible for the current "epic" financial crisis?

I think this is a bad idea and the effects would be CATASTROPHIC! Just think of the implications of it! If the government pursue such a thing, they would heckle the banks to drop prices as low as possible so it could buy the houses for little as possible. Not only that, but just the fact that the government would own these homes is bad. Thus, it would worsen the epidemic of plummeting property value. To make it worse, who is capable to afford purchasing the homes from the government? If families already lost their jobs, ruined credit, and lost their home to foreclosure, how will they be able to afford purchase a home, even from the government? The only people who are capable to purchase the homes are rich investors. They would buy these homes from the government at dirt cheap prices and jack up the prices to unfordable prices. This plans would only continue the never ending cycle


We must not allow the government to do this, but instead ACTUALLY HELP the families who have lost or close to losing their homes.
My solution to the problem is to offer a one time housing credit and work with lenders to reduce interest rates and affordable payments for families who are at risk losing their homes. My solution would also evaluate the family's income and the reality if they're able to afford their home even with the housing credit.....(Let's face it, some of the foreclosures are due to families who bought homes that cost more than they could afford.)

So basically, the structure of my plan would look like this:

Families who are about to lose their homes, earning less than $30,000, own one home, AND the cost of home is within the family's range of affordability would receive a housing voucher of $10,000 to help defray the home loan and up to $10,000 low interest loan to help cover severe home repairs.

Families who have already lost their homes and earning less than $30,000 would receive a housing voucher of $10,000. Families may use this voucher toward renting an apartment/home or purchase a home within the family's means of affordability. In addition, the plan would include banks who have contracts with the government to provide loans to the families who decide to purchase a home and up to $10,000 low interest loan to help cover severe home repairs.

Other homeless/jobless families and individuals will also be eligible for the $10,000 voucher toward purchase of home or rent apartment, but only under certain conditions. The conditions include the families/individuals must have/get a job, if they're under the influence/convicted of drugs, alcoholic, and other illegal substances, they must enroll AA/NA courses / help centers. These families and individuals must hold the same job(or get a higher paying job) and remain in the AA/NA courses/help centers for a period of at least six months before eligible for voucher. The families/individuals must hold the same job (or get a higher paying job) and remain in the courses/help centers for a period of two years to sustain eligibility for the voucher. If the family/individual fail to meet the requirement will lose the remaining money left in the voucher.


Families who are about to lose their homes, earning between $30,001 - $50,000, own one home, AND the cost of home is within the family's range of affordability would receive a housing voucher of up to $5,000 to help defray the home loan and up to $10,000 low interest loan to help cover severe home repairs.

Families who have already lost their homes and earning between $30,000 - $50,000 would receive a housing voucher of up to $5,000. Families may use this voucher toward renting an apartment/home or purchase a home within the family's means of affordability. In addition, the plan would include banks who have contracts with the government to provide loans to the families who decide to purchase a home and up to $10,000 low interest loan to help cover severe home repairs.

Families who earn more than $50,000 will not receive a housing credit. However, families who earn between $50,000 - $75,000 will receive up to $5,000 low interest loan to help cover severe home repairs.

Lastly, if it is deemed a house costs more than what a family can afford, even with the housing credit AND the family refuses to move to a more affordable home, the family will not be eligible for the housing credit nor the loan to help pay for home repairs. The only way the family is eligible for the housing credit is if they move into a home that costs at least 10% less than what is currently owed for the current home.

NOW. In the event the families move out of their current home and into a more affordable home, the government or home investors may step in to take over/purchase the home to relieve the families from the home they couldn't afford. I know this statement contradict to what I said above about the implications of the government purchasing foreclosed homes, but this route would be less devastating than the government purchasing already foreclosed homes, rather than purchasing them to prevent foreclosure.


There are other details I didn't include, but this has been my idea for a very long time and I think it is a very realistic proposal.

the solution he is the f-----g problem. He presided over the NAZDAQ crash in 2000-1 where I lost 47% on my 401k, it took me 5 years to climb out of that hole. Then he helped create the mortgage crisis now she wants the old SOB to help us get out of it. He is the dip-shit that sat up there in 2001 and went along with all the Bush tax cuts too.

Wall Street guru not Cosmo!

Even if that was good policy (which it isn't) approinting Greenspan to ANYTHING is horrible politics with the base of the party she hopes to represent.
It is statements like this, and her idiocy on the war, that lost the nomination for her.

I'm sure President Obama will get her tickets to next year's Easter Egg roll.

she must be drinking toilet to tap water.

Greenspan has created and abetted this crisis!

the mess in Iraq. As others have posted before me..more of the same.

I guess the following really applies:

A vote for Hillary or McCain is really a vote for Bush's 3rd term!

;(

Michael Jackson to look into child welfare and the need for a national bedtime.

Brittany Spears to chair a commission on improving parenting skills.

Scott Petersen to organize a program combating violence against women.

Hospital Corporation of America to plan a program of national health care.

The board of directors of Wal-Mart to figure out how to bring the trade imbalance with China back into line.

I wish the last two were as silly as the first three, but unfortunately, they are probably 100% spot-on true. :puke:

"Fair and Balanced"

I'm just waiting for her to announce that she will make Dick Cheney her Defense Secretary.

What she MEANT to say is that Greenspan should be burned at the stake.

Why am I not surprised by this......................

poor financial institutions?

I was told that supporters of my candidate of choice don't like to discuss issues. Isn't the economy one of the biggest issues that we have to discuss today?

We need to move on with our nomination process and Barack Obama.