Loanowner bailouts were designed to benefit banks, an insider’s view


By golfplan18   Follow   Mon, 5 Nov 2012, 6:37am   347 views   5 comments
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http://ochousingnews.com/news/loanowner-bailouts-were-designed-to-benefit-banks-an-insiders-view?source=Patrick.net

The bubble collapse was rife with denial caused by false rumors of homeowner bailouts. Many homeowners held out hope that if they could just keep current on their mortgage long enough, the government would come to their rescue in the form of a mandated bailout program. Many such programs were attempted, but if their stated goal was to keep loanowners in the properties they occupied, these programs were a dismal failure — thankfully. If they had succeeded, the moral hazard would have served to inflate an even more massive housing bubble in the future.

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  1. upisdown


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    1   7:40am Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Nope, it wasn't ever going to happen. The NAR has lobbyists, and so does the MBA, and that's just one sub-section of the baking sector that has lobbyists.

    Where's the lobbyists for homeowners? There isn't any.

  2. The Professor


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    2   9:04am Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected  

    From the article:

    "On one side of the ledger, we see that the big banks are bigger than ever, more than 90% of the gains in GDP in the past four years have accrued to those in the top 1% of the income distribution, and total Wall Street pay is still near record highs despite a sharp drop in employment.

    Those statistics are shocking and disturbing. A crony system that rewards incompetence with largess is doomed, but not before the perpetrators loot our economy and the government coffers for their own personal gain."

    Less players making more money. Monopoly people forgetting that when you win, the game is over.

  3. CaptainShuddup


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    3   9:09am Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    What are you talking about, Obama personally helped 50,000 homeowners from going in foreclosure, it was an accomplishment. He got a Noballs Piss prize for it. It was in all of the Papers, Iwog cites it as his crowning achievement.

  4. upisdown


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    4   9:10am Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    Those statistics are shocking and disturbing. A crony system that rewards incompetence with largess is doomed, but not before the perpetrators loot our economy and the government coffers for their own personal gain."

    But was it really incompetence? Their own actions before and after shows that it wasn't.

  5. upisdown


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    5   9:11am Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    CaptainShuddup says

    What are you talking about, Obama personally helped 50,000 homeowners from going in foreclosure, it was an accomplishment. He got a Noballs Piss prize for it. It was in all of the Papers, Iwog cites it as his crowning achievement.

    Who appropriated the program, and why did they do it?

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