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Wednesday, August 16, 2006

 

Dispatches From The Bush/Castle War on the Middle Class:

Mission "Foreclosure" Accomplished

Bargain-hunting bloggers are calling it the perfect storm: the combination of rising interest rates, variable-rate mortgages and a soft housing market is resulting in a wave of foreclosures that could turn tidal. Banks started foreclosing on 173,579 homes in the first quarter of 2006, about 5 percent more than in the same quarter last year, reports the Mortgage Bankers Association of America. Delinquencies--which foreshadow foreclosures--were up 7 percent, with 1.6 million loans showing past due. Last week 570,000 houses were in a stage of foreclosure, according to research firm Realtytrac.com , which said its listings--which include categories bankers don't--have grown 39 percent in the last year.

- Newsweek.

If you are super liquid (like this guy) then - this could be a good thing. If you got an ARM - not so much.

Comments:
we have been raped by the Bushco hedgefunders alliance.
get out you rape kits and go vote DEMs for DC office....Too bad Carper is not really a DEM.
 
Why does that Newsweek link go to DE Liberal?
 
The links's are messed up I'm just going to put the whole URL.
 
People aren't responsible for buying too much house?

Bush and Castle made people get a trick mortgage to buy more house than they can afford?
 
By your logic, why is loansharking illegal? nobody makes you borrow from a loan shark.

Bush is guilty of allowing the trick mortgages to create an illusory credit-based "wealth effect" that concealed the decline in real wages and distracted the middle-class from the tax cuts for the rich.

The Fed should have been all over the banks that issued the ARMs and interest-only loans up to 125% of the asset value, beyond the borrower's ability to repay.

I know the faux "personal responsibility" crowd would like to pin everything on the homeowner. But the banks are about to find out that when they foreclose on the home they are the ones who will lose; the mortgage will be upside down and they will take a loss. The banks would be better off to renegotiote the mortgage, or not to have issued it at all.
 
So, is it Bush's fault, or the Feds? You haven't properly assigned the blame, anon. Or maybe there's a few other people you can throw in there. You forgot to mention Castle. I'm sure he did something wrong, too.

I know the faux "personal responsibility" crowd would like to pin everything on the homeowner. But the banks are about to find out that when they foreclose on the home they are the ones who will lose; the mortgage will be upside down and they will take a loss. The banks would be better off to renegotiote the mortgage, or not to have issued it at all.

That's called the free market. The banks deserve what they get.

I don't know about anon, but I am not "faux" anything. You are responsible for what you do. Period.

Anon - are you saying adjustable rate mortgages are equivalent to loan sharking?
 
So, is it Bush's fault, or the Feds?

Both. Bush had every opportunity to identify shaky mortgages as a problem, but he never mentioned it, because he profited politically. Without the illusion of wealth, the middle class would have experienced a noticable decline in their standard of living and turned against the GOP long before the 2004 elections.

And yes, it is Bush's responsibility - through Treasury - to protect the value and integrity of US money and the banking system, weakened by risky loans.

Yeah, I know the Fed is technically independent, but Bush didn't even try to jawbone them to protect homeowners. And he had that creepy empty suit Snow in Treasury who didn't do squat.

The shaky loans juiced the housing market and gave the Fed room to keep interest rates lower than they should have been, given the amount of US debt outstanding, and concealing the true impact of the tax cuts for the rich.

That's called the free market. The banks deserve what they get.

Yeah right. Ask Neil Bush and his pals about that.
 
Silverado? That's a wee bit of a stretch, don'cha think?
 
Silverado? That's a wee bit of a stretch, don'cha think?

Same s**t, different decade.
 
AMEN Anony!!!!!!!!!
And for shame the DE DC DEMs are in this as deep as anyone.
 
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