Fixing a mess ... or more of a mess?
Banks may agree to plan to freeze ARM rates
Excerpt:
Federal authorities and major U.S. banks are close to an agreement under which interest rates on adjustable-rate loans will be frozen, a plan that would allow stretched homeowners to potentially avoid foreclosure, The Wall Street Journal reported Friday.
The newspaper said such an accord could reassure both investors and homeowners, helping to support home prices and provide liquidity for lenders. Moreover, the plan could help ease criticism aimed at the Bush administration over its handling of the mortgage crisis heading into an election year, according to the report.
While details still are being worked out, the heart of the plan is an agreement to extend so-called "teaser" introductory rates on loans for people who would default if their mortgage rates "reset" at much higher levels.
Freezing Mortgage Rates Is Not the Answer
Excerpt:
The problem with the bailout, and the reason I oppose it, is that there are no lessons learned when buyers (and the mortgage companies) are saved from bad decisions. Thus when the next boom arises, there will be little hesitation to do the same thing again. Do we want to encourage that sort of moral hazard? I don't think so. As my mom would tell me, though, the burned hand learns best.
I'm certain that there are a bunch of folks a-wishin' and a-hopin' for the deal to go through soon. And sure, it's terrible if someone's forced to go into foreclosure because they can't afford the home they bought. But the fact is, many people bought homes they had no business buying. Bailing them out is a temporary fix that does nothing to prevent it from recurring.
Sure, we're supposed to be charitable during the holidays. But charity can take many forms. Ensuring that understanding why this crisis happened so that we don't have to live through it again may be the best gift for future homebuyers.
Comments: The rationale for this is the old "Half a loaf is better than none"! The danger is that it really might make the mess worse than it is! Additionally any lending institution can already unilaterally offer a better rate to a homeowner to help them stay in their home.
I have been told in the past that if you think you are not going to be able to make your payments to talk with the bank. But you must do this before you start failing to meet your payments. From what I have heard, often times banks will help out by lowering interest or whatever. But the key is, before you start missing payments. I think it was in "Rich Dad, Poor Dad" that I read that. It's like people just stick their heads in the ground and hope the inevitable does not happen. I had a friend who did that with a credit card. He called them up before he missed the payment and told them his situation and they lowered the next like three payments so he could make the payments.
ReplyDeleteRe: "I have been told in the past that if you think you are not going to be able to make your payments to talk with the bank."
ReplyDeleteGood advice!
PRESIDENT BARACK OBAMA IS BRILLIANT!
ReplyDeleteSpeaking of Barack Obama—Barack Obama is a racial-minority individual and does not like racism:
And Michelle Obama is a racial-minority individual and does not like racism:
SCANDALS! SCANDALS!
SOME OF THE WORST CASES OF RACIAL PREJUDICE IN WORLD HISTORY!
CONSTRUCTIVE WORLDWIDE DISSEMINATION OF INFORMATION RELATING TO SCANDALS:
(I) I do solemnly swear by Almighty God that George W. Bush committed atrocious, racist, hate crimes of epic proportions and with the stench of terrorism which I am not at liberty to mention. Many people know what Bush did. And many people will know what Bush did—even until the end of the world. Bush was absolute evil. Bush is now like a fugitive from justice. Bush is a psychological prisoner. Bush often worries. In any case, Bush will go down in history in infamy.
(II) It is opined that Bill Clinton committed terrifying, racist, hate crimes during his presidency, and I am not free to say anything further about it. ‘Be sure your sins will find you out’ (Numbers 32:23).
(III) What if basically all racial-minority people would subscribe to the interpretations that George Herbert Walker Bush committed monstrous, racist, hate crimes while he was the President of the United States? It will eventually come out: it is only a matter of time.
(IV) I know it may be hard to believe. However, Ronald Wilson Reagan committed horrible, racist, hate crimes during his presidency.
Respectfully Submitted by Andrew Wang, J.D. Candidate
B.S., Summa Cum Laude, 1996
Messiah College, Grantham, PA
Lower Merion High School, Ardmore, PA, 1993
(There are thousands of copies on the Internet (by March 29, 2009) indicating the contents of (I), (II), (III), and (IV). For example, one can go to Google right now, type “George W. Bush committed hate crimes of epic proportions and with the stench of terrorism,” hit “Enter,” and readily find 1,000 or more copies indicating content of (I). For example, one can go to Google right now, type “Bill Clinton committed racist hate crimes, and I am not free to say anything further about it,” hit “Enter,” and readily find more than 310 copies indicating content of (II). For example, one can go to Google right now, type “George Herbert Walker Bush committed monstrous, racist, hate crimes,” hit “Enter,” and readily find more than 130 copies indicating content of (III). For example, one can go to Google right now, type “Ronald Wilson Reagan committed horrible, racist, hate crimes during his presidency,” hit “Enter,” and readily find more than 90 copies indicating content of (IV). And there are thousands of copies in very many countries around the world. For example, there are innumerable copies in Australia, Brazil, Canada, China, France, Germany, India, Japan, Korea, Russia, the United Kingdom, etc.)
“BAD NEWS FROM THE UNITED STATES: ON THE RACIST HATE CRIMES AND ETERNAL INFAMIES OF GEORGE W. BUSH, BILL CLINTON, GEORGE H.W. BUSH, AND RONALD REAGAN” BLOG OF ANDREW WANG
badnewsfromtheunitedstates.blogspot.com
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‘If only there could be a ban against invention that bottled up memory like scent & it never faded & it never got stale.’ Off the top of my head, it came from my Lower Merion High School yearbook.