Archive for February, 2009
The latest “good idea” to come out of DC regarding solving the housing crisis and credit crisis would be to allow a government fund to buy troubled mortgages from the banks. Funding would be done jointly from Uncle Sam and Vulture/Hedge Funds. Thus, rewarding those entities for taking the risk and effort to recover value and make fortunes on the backs of the troubled homeowners!!!!
No one is a bigger capitalist and supporter of the free markets than me, but the perversity of the ideas coming out of DC and celebrated by those still with cash is absurd.
A Wall Street Journal article this week indicated that these funds would by the mortgages at $0.05 to $0.20 on the dollar of “face value” thus putting a market value and theoretically some liquidity into a market that has had a dearth of players (folks willing to buy or sell at a mutually agreed upon price). The thought is that by adding government dollars and some guarantees against loss to these vultures and speculators, that things would then get better for all!
This is inane! Once again, the most aggressive investors/institutions will be treated as rolyalty and “protected” by those suffering under situations created to make money from them!
The best idea still and one that I have discussed in the past and will continue to support is the following:
Allow the borrowers to buy back their outstianding mortgages and outstanding credits at the same rate as Uncle Sam is proposing they be sold to Vultures. Provide government financing and guarantees to allow the refinancing of the principal and accrued interest at “pennies on the dollar” to those suffering, with deferrals on payments until income levels have rebounded to facilitate repayment of the reduced amounts.
Why should the Government entice vultures to buy on the distress of the public, and then profit on their further distress? Why not have the Government be the instrument for settlement of the sources of distress? Why not have the individual families receive the benefit from their own recovery? Reduce the levels of sources of profit to 3rd parties and institutions? Foster a benevolent solution, rather than dumping the paper in the hands of vultures and collection agencies to further harass those facing hardship and eviction?
Enough raping of the populace by the Wall Street Titans and Banking Giants!!! We have see that quarterly profits and earnings for shareholders rewarded by temporarily higher stock prices is a recipe for disaster!
A change is needed. A reason for hope! Let us hope the new administration sees the light and makes positive things happen for our society!
Also check out http://alphainventions.com/ a great website for all new posts!
<a This is the coolest dragon picture I have ever seen!!!!
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Sorry that this is not even close to the subject of the blog, but I thought it cool enough and a great distraction from the chaos of the world!!!
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