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American dream, American nightmare

By Owen Paine on Thursday February 19, 2009 10:56 PM

"Mr. Obama has unveiled a,,, plan to prevent as many as nine million Americans from losing their homes."

Translation: 9 million rubes hornswoggled into keeping the mortgage monkey on their back.

Here it is, Mr and Mrs Honest Godfearing Dumbcluck -- Uncle's helium rescue: re-fi credit balloons to lighten that nasty house on your back. Imagine! Up to 105% of market value!

Underwater never felt so good.

"Moody's Economy.com says nearly 27 percent of America's 52 million homeowners with a home loan owe more on their mortgages than their homes are worth."
"In the end, all of us are paying a price for this home mortgage crisis," sez honest BO our prez, "And all of us will pay an even steeper price if we allow this crisis to continue to deepen, a crisis which is unraveling homeownership, the middle class, and the American Dream itself."

Hmmmm. That's a big negatory, good buddy. What we job goons really oughta do is not pay as we go till we get relief, but walk away free now, all of us, and rent back each others "homes" from the foreclosure ghouls.

Free at last! Free at last! Thank God almighty, free at last!

Why continue this game of pass-it-along, anyway? " In whose pocket -- after all -- does the money end up?", as our dear backwoods troublemaker, Father Smiff, is wont to add.

Comments (5)

Damn, now I wish I could remember which Senatron/Congresscritter it was that called on people behind on mortgages and facing foreclosure to basically commit civil disobedience by blowing off their mortgage and squatting their own houses. I remember catching that story on AP and thinking how behind the curve she was, having seen that LA Times story last summer -- the one that inspired my real-estate ad parody cartoon -- about how many previously working, mortgage-paying upright middle-class folks were losing their houses and having to live in their cars as a result of job losses, and how so many people were being foreclosed on that the stigma was gone, and how this was scaring the fertilizer out of the mortgage-banker types because of the potential for people to either move out in the middle of the night and leave the keys in the mailbox, or else blow off the mortgage and squat the house as the speed of the mortgage banking bureaucracy would give them at least a year-ish of "free" living while they scraped up some cash so they could move into a decent apartment or something.

The banks, as I understand it, really really hate that, owing to the piss-poor sale prices that foreclosed houses get at auction -- nearly as much as they hate people like me, who don't put more on their credit cards than they can pay in a single check every month, because they can't hit me with their goddamn' ass-raping interest rate (muthafuckin' MasterCard kicked me up to nineteen muthafuckin' percent last year).

Btw, anybody here catch that CNBC dipshit who does that ranting shouting schtick from the floor of the NYSE today, calling all those people who've lost their jobs and houses and medical insurance "losers"?


Marcy Kaptur was the congressperson telling people to stay in their foreclosed homes.


In the UK plan, help is limited to those who have actually lost jobs, whereas in the US plan those who over-leveraged (or speculated)get help, too. Some Bloomberg radio guy yesterday created a storm when he ranted, a la Peter Finch in Network, he was "mad as hell" and wouldn't take it anymore that "losers" were being coddled while hard-working, prudent, rule-following citizens were ignored.

Calculated Risk points out that rescue plans that postpone interest payments for two or three years (charging interest on the deferred interest at the same time), are merely another form of poisonous ARM -- supporting your point here, OP.

Marcy Kaptur's floor speech might be what Mike F and Linda J are talking about? Maybe?

See this one:


From the latest _Business Week_:

1. Number of refinancings facilitated by Hope for Homeowners, the "program" created by Congress last July to "help" 1 million late payers: 25 (not a typo)

2. Findings of a study of 21,219 recent mortgage modifications:

Percent leading to lower monthly payments = 35
Percent leading to unchanged monthly payments = 18
Percent leading to higher monthly payments = 47

BW: "The reason for this strange result: Lenders and loan servicers are tacking on missed payments, taxes, and big fees."

"Strange" indeed...

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