Paulson Dismisses Mortgage Rescue Plans

[ozymandius]

Source: Wall Street Journal

WASHINGTON -- The Bush administration is hardening its opposition to the chorus of Democrats, bankers, economists and consumer advocates calling for a big-money government rescue program for struggling homeowners.

In an interview yesterday, Treasury Secretary Henry Paulson branded many of the aid proposals circulating in Washington as "bailouts" for reckless lenders, investors and speculators, rather than measures that would provide meaningful relief to deserving, but cash-strapped, mortgage borrowers.

Mr. Paulson's comments came amid signs that the nation's housing market is getting worse, not better. Indeed, at a House hearing yesterday, Federal Reserve Chairman Ben Bernanke kept the door open to further interest-rate cuts to boost the economy, even as he warned that inflation pressures have intensified in recent weeks.
.....

In the coming days, a mortgage-industry alliance called Hope Now is expected to report on its efforts, backed by the administration, to expedite refinancing or rate freezes for as many as 1.2 million subprime borrowers whose adjustable interest rates are due to rise in the next two years. Mr. Paulson said he planned to keep the pressure on mortgage servicers to cut a deal with homeowners who are current on their payments but might slip into delinquency if their rates jump up.

Read more: http://online.wsj.com/article/SB120416823532298975.html?mod=hps_us_whats_news

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Paulson loves any plan that helps the banks over the borrowers.

Fucker

[slackmaster]

1. Banks are people too

When banks go down, people lose jobs. (It happened to me three times in the early '90s.)

[villager]

2. you're saying the homeless masses will all have bank jobs?

n/t

[slackmaster]

3. No, that's not what I'm saying

I'm no fan of bank bailouts. They really don't work in the long run, just delay the inevitable.

When banks fail, real working people who work for them lose jobs. The big-wigs are always the last to go, and they have golden parachutes.

[villager]

4. well, there's no question the big-wigs make sure they are last, rather than first,

out the door!

Hope you are ensconced somewhere other than a bank, in your current working life!

[arendt]

5. But, isn't this the "murderers have children" defense?

Besides, why is the choice always bailout vs. "business as usual"?

Why do the bums running the banks get to continue do so with no oversight? I mean, we have oversight boards for school districts that are in trouble. Why are we just supposed to let these corrupt crooks continue to cash out while we all get screwed?

They should put a court-appointed overseer in each bank officer's office. He does what's best for the community or he goes to jail. It would be like that Chappelle skit where they treated the drug dealer like a rich guy and the rich guy like a drug dealer.

arendt

[Kikosexy2]

6. Great Depression...

here we come....

[eilen]

7. Foreclosing on homes

that borrowers can't afford is corrective action, they will just have to rent. Bank accounts are insured by the FDIC. Not all banks made those loans, not all of them will close down in shameful bankruptcy. Overinflated home values are in need for correction. Communties who made sweetheart zoning changes with builders will have to pay the piper as well. For those that bought homes and live in them and are in them for the long haul and did not use them as personal ATM machines will be able to wait this particular blowback out. I don't think taxpayer money should be used to prop up irrational home prices, irresponsible and predatory banking companies nor people who borrow and spend beyond their means.

[Lars39]

8. Landlords are losing their property, too.

The fallout will be felt by the world.