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2009-07-30 Home Front: Politix

Frank threatens banks to stop foreclosures

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Posted by Fred 2009-07-30 00:00|| E-Mail|| Front Page|| [11137 views ] Top

#1 This is HUGE, banks are used to making money first by riiculous interest sand fees (Especially fees) and then making even more by forclosing, reselling the home and doing it all over again.

It's NOT in the bank's best interest to allow homeowners to keep their homes.

This will make Lawyers very rich, as the banks Stuck Piggy Squealing will be heard on nearby planets.
It also accounts for the bank's ignoring laws and forclosing anyway, often while stringing the owners along as long as possible and lying abiut "Helping them".

Posted by Redneck Jim 2009-07-30 00:44|| 2009-07-30 00:44|| Front Page Top

#2 Shit I need to go to bed, and remember SPELL CHECK, dammit.

Posted by Redneck Jim 2009-07-30 00:46|| 2009-07-30 00:46|| Front Page Top

#3 Such court-ordered cramdowns will be only a very short-term solution. If those become common, look for mortgages to become even more expensive & harder to get. Barney's next step will be to offer free McMansions for everyone!

Posted by Anguper Hupomosing9418 2009-07-30 06:13|| 2009-07-30 06:13|| Front Page Top

#4 Karl Denninger on his blog Market Ticker has a more extreme view on this:
he desperately wants you think he cares about you.
He does not.

Here's the math:

There are about ~13-15 million homes that are underwater in this country - that is, the mortgage outstanding exceeds the current market value.

The average home that is underwater is at helium depth to the tune of about $75,000. Some much more ($300,000) and some significantly less (e.g. $20,000.)

Now let's modify them all so they're no longer underwater! That is, simply forgive principal down to current market value.

Ok: That's 975 billion dollars, or damn close to a trillion.

Guess who eats it? The banks. What happens if the banks are forced to recognize a trillion dollars in losses that they have (so far successfully) managed to shove under the carpet and pretend that they do not exist?

Any questions?

The banks are not modifying these loans in that fashion not because they want to be "mean", but rather because on a market value basis for these loans they are all insolvent right now and have been for over a year...

This sort of "book-cooking" is outrageous and it is in fact exactly what Japan did when their banks got in trouble doing the very same thing - blowing an asset bubble by lending into it at Warp 9 with no prayer of being able to recover anything close to the lent value on a foreclosure.

The banks' only hope is to keep "extending and pretending", falsifying the claimed "value" of these loans, praying that they can get away with it for literally a decade or more (much as they did in Japan) while they charge you 30% interest on your credit card to "earn their way out" of the hole, thereby avoiding self-immolation.

Any action that forces them to recognize the market value of these properties causes all of them to blow up instantly as it reveals that the value of their assets are vastly less than liabilities.

That is the definition of insolvency.

As such unless Barney Frank is prepared to send in the FDIC to close Citibank, Wells Fargo, Bank of America and dozens of other large and midsize banks right here and now this is just more hot air out of the well-used pie-hole of a guy who has never met a banking interest he didn't serve and protect.

Posted by Anguper Hupomosing9418 2009-07-30 06:33|| 2009-07-30 06:33|| Front Page Top

#5 unless Barney Frank is prepared to send in the FDIC to close Citibank, Wells Fargo, Bank of America and dozens of other large and midsize banks

And THERE you find the true motivation of Barney the Socialist! Force the rest of the banking industry into open insolvency and government takeover! End Capitalism!

Posted by Glenmore 2009-07-30 08:53|| 2009-07-30 08:53|| Front Page Top

#6 Courtesy of Paul Shanklin, I give you Barney Frank (D-MAD), The Banking Queen.

Posted by Black Bart Ebberens7700 2009-07-30 09:27|| 2009-07-30 09:27|| Front Page Top

#7 Just great. He caused the meltdown with freddie mac and fannie mae, and now will force banks to accept more debt burdon?

F-you franks. And F-you congress.

Someone burn that town down before we all collapse.

bunch of bastards.

Posted by newc">newc 2009-07-30 11:05|| 2009-07-30 11:05|| Front Page Top

#8 Frank remains one of the most dangerous men in Washington today.

Posted by Richard of Oregon 2009-07-30 11:24|| 2009-07-30 11:24|| Front Page Top

#9 Bawney Fwanks. Public Enemy No. 1. Far more dangerous than Osama bin Laden ever dreamed of being. Only question is: Does he really have his head up his butt or is he doing it on purpose to bring about the final destruction of the United States of America?

Posted by Ebbang Uluque6305 2009-07-30 12:03|| 2009-07-30 12:03|| Front Page Top

#10 I don't think it's Barney's head that's up his butt.

Sorry I couldn't resist.

Posted by Hellfish 2009-07-30 12:29|| 2009-07-30 12:29|| Front Page Top

#11 I love the irony of Mr. Fwank's inability to articulate "foreclosure". Reminds me of Tom Brokaw and "Jeff Gillooly"

Posted by Frank G">Frank G 2009-07-30 19:46|| 2009-07-30 19:46|| Front Page Top

#12 Barney Frank deserves a guillotine. I hope he gets a virulent form of aids and rots away in great pain.

Posted by OldSpook 2009-07-30 22:15|| 2009-07-30 22:15|| Front Page Top

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