Here’s why Senator Bayh had “reservations” about the cramdown legislation which went down in flames yesterday:
“My concern about this is that in our appropriate zeal to help the four or five percent of Americans who might be faced with bankruptcy, we don’t unduly raise the costs of homeownership on the 95 percent who never will.”
Apparently Bayh (and anyone else sharing his sentiment on this) is so stupid he doesn’t realize that adding to the already hundreds of thousands of foreclosures this year will further drive down the value of real estate- worse than now.
Of course if his goal is to destroy the value of real estate to the point big developers and speculators can get tons of land on the cheap, then he’s doing a great service for the wealthy class.
Tester is the BIG disappointment here… he campaigns on the premise of being a good ol’ boy.. ya know.. just one of the people.. then as soon as he gets elected he kicks people in the head when their down.
http://www.huffingtonpost.com/2009/05/01/in-their-own-words-why-de_n_194589.html
Bayh’s a Republican circa 1955. That’s the most charitable thing I can say about him.
Compared to Evan, even Lugar is beginning to look like a lefty sometimes.
You either cram down the loan mod, and the debtor stays in the house making the new payments, or the stay is lifted, the house is foreclosed on, and there’s one more dislocated family and one more REO dumped on the market. I wonder which option he figures has the higher cost?
“special circumstances”.. the irony here is when the wealthy class needs something pronto (billions to cover their stupid/risky investments) the senate is all over it.. done within 24 hours, and with no transparency or conditions.
but when WE the little people need help in extraordinary times.. well, we’re on our own. with 50 millionaires in the senate and nobody wanting to vote them out, representational gov’t is a farce.
with cramdown a non-starter, they’re trying to get their “concerned” act together and garner some positive spin out of expanding an existing program called “Hope for Homeowners“, a misnomer if ever there was one:
Senate easing mortgage terms?
but to make it more palatable, they’re going to throw $2b of the wall street bail out money at it, and let the FHA pick up the tab for the rest, increasing, permanently, the FDIC’s borrowing limit by 333% from $30b to $100b, and reducing the premiums banks pay to inure deposits.
hell of a deal, for the banks…homeowners and taxpayers?…no so much.