Clinton rebuke mortgage lenders

B

belmondo

Hi,
since I!m not living in US I don't get what is going on now with all the freeze of rates and stopping foreclosures. and sorry for my english.

why Clinton and others wants to freeze rates, establish some fund to help people, make wall st. responsible for all this. I understand that there were/are banks that lend mortgage for no credit etc. so these banks respectively investors who bough CDO etc. having trouble, but if I am not able to pay my dues than I will loose my home and foreclosure is inevitable. So why to rescue these people? That is their problem if they are so stupid. You live in free country, you don't have communism like we had.
Or Clinton wants to win election and promises to help?

thank you for explanation
 
Politicians are just not going to clamp down on the banks/lenders because there's now no difference between governments and big business.

In fact many would suggest that big businesses now pretty much own the governments.

Financial service companies are (no surprise) the biggest spreaders of cash in washington. Very powerful, very rich etc.
 
Quote from gurucandidate:

They are basically bailing the financial institutions out under the guise of giving relief to the overextended homeowner.

GC
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And "they" are doing so on the backs of all US Citizens and holders of US debt... it will be reflected in the currency.
 
Quote from gnome:

And "they" are doing so on the backs of all US Citizens and holders of US debt... it will be reflected in the currency.
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Oh really? How so? How am I as an individual going to be negatively impacted by mortgage lenders agreeing not to raise the interest on their adjustable mortgages to above market rates?
 
I would guess that if the gov't requires lenders to freeze rates or limits the market flexibility of rates, we will have a supply/demand imbalance. Credit will be harder to come by for any purpose if banks feel that they can't set risk appropriate rates. A market solution seems superior to me, but when people lose their homes it becomes politically untenable for our leaders not to act. Longer term the consequences could be much harsher as a result of the actions they take.
 
Your dollars will be worthless.

Quote from wareco:

Oh really? How so? How am I as an individual going to be negatively impacted by mortgage lenders agreeing not to raise the interest on their adjustable mortgages to above market rates?
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Quote from bc303:

I would guess that if the gov't requires lenders to freeze rates or limits the market flexibility of rates, we will have a supply/demand imbalance. Credit will be harder to come by for any purpose if banks feel that they can't set risk appropriate rates. A market solution seems superior to me, but when people lose their homes it becomes politically untenable for our leaders not to act. Longer term the consequences could be much harsher as a result of the actions they take.
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Their setting of "risk appropriate rates" is exactly what is causing the problem. The restructuring of loans is for people who can afford their home at their current rates, but who will be unable to afford it when rates re-set. You're a lender, would you rather, (A) let your loan re-set higher, and shortly thereafter, file for foreclosure when the borrower can't pay; take possession of the house, and sell it for a loss, or (B), re-negotiate the loan at a rate that is on par with current market rates for mortgages, which would allow the borrower to afford to continue making the mortgage payments, and which keeps the loan from being listed as in default on your books, and your continue receiving the income stream from that loan?
 
Quote from Pro_Trader720:

Your dollars will be worthless.
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They won't be "worthless", at least not for 50 years or so. But they will be "worth less"... the Baby Boom generation will experience currency debasement. The $USD currently is 75. I wouldn't be surprised to see it at 25 or even <10 before the Boomers die off.
 
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