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Bait and switch folks, bait and switch. This is a robbery that both Obama an McCain supported. They're fronts for the banksters...the left wing and the right wing are both part of the same bird.
Paulson: Troubled assets will not be purchased
'Market ... has for all practical purposes ground to a halt,' he says
Susan Walsh / AP
updated 20 minutes ago
WASHINGTON - Treasury Secretary Henry Paulson said Wednesday the $700 billion government rescue program will not be used to purchase troubled assets as originally planned.
Paulson said the administration will continue to use $250 billion of the program to purchase stock in banks as a way to bolster their balance sheets and encourage them to resume more normal lending.
He announced a new goal for the program to support financial markets, which supply consumer credit in such areas as credit card debt, auto loans and student loans.
Paulson said that 40 percent of U.S. consumer credit is provided through selling securities that are backed by pools of auto loans and other such debt. He said these markets need support.
“This market, which is vital for lending and growth, has for all practical purposes ground to a halt,” Paulson said.
The administration decided that using billions of dollars to buy troubled assets of financial institutions at the current time was “not the most effective way” to use the $700 billion bailout package, he said.
The announcement marked a major shift for the administration which had talked only about purchasing troubled assets as it lobbied Congress to pass the massive bailout bill.
Paulson said the administration is exploring other options, including possibly injecting more capital into banks on a matching basis, in which government funds would be supplied to banks that were able to raise money on their own.
The bailout money also should be used to support efforts to keep mortgage borrowers from losing their homes because of soaring default levels, he said.
A proposal to have part of the bailout funds used to guarantee mortgages that have been reworked to reduce monthly payments for borrowers is an approach the administration continues to discuss, but Paulson did not announce that it would be adopted. Federal Deposit Insurance Corp. Chairman Sheila Bair has pushed for that approach.
Speaking of the first-ever summit of leaders of the Group of 20 major industrial and developing countries, Paulson said this weekend’s meeting needs to focus first on how to repair the financial system as a way to bolster the global economy.
Paulson praised a new set of guidelines issued Wednesday by the Federal Reserve and other bank regulators, saying that they addressed a crucial issue of making sure that banks continue to lend at adequate levels.
This is a good bate and switch if that is what you want to call it. Instead of the Gov purchasing worthless assets as originally intended they are injecting it into the banks and making the banks use the money for new quality loans and forcing them to "restructure" all the bad loans they have on their books.
Those who are currently in default will get a restructured mortgage NOT a handout. These details were touched on yesterday on CNBC in an interview with... I can't remember off hand.
From what I gathered from it, those in default and that fall within a certain debt to income ratio will get a rewritten mortgage to a longer 40 year term and/or deferred principal/interest with a balloon due in the end ect. This is a pretty good idea aside from just forgiving mortgages. It seems to me that the banks are going to make a FORTUNE from this deal as in anyone that gets a rewritten mortgage with a balloon due at the end will probably NEVER own their home. One simply doesn't live long enough to make all those payments...
What congress passed was a check with no designation on who and how the maonry would be used. I imagine they have alot to do with teh switch of waht was said the prupose was. That the trouble with these type bills;thier cash with no dirstuon and politics talkes over.I am sure alot of congressamn had a big voice looking at what the changes are.It reads liike a democratic congressional wish list.
From what I have heard about the refi for mortgages, it will not be what many home had hoped for...no walking away so easily, and they will bestuck in their homes. They have to payfor either 40 years or options and only for primary homes, so all the greedy investors are left out as it should. (by the way I'm an investor as well, but not as stupid as many of the other investors are)
The people who thought they can just walk away due the values gone down....surprise...not happening so easy!
Those who are currently in default will get a restructured mortgage NOT a handout. These details were touched on yesterday on CNBC in an interview with... I can't remember off hand.
Why can't responsible home owners get a free refinance? I'm sure there are plenty of homeowners that would love to refinance their existing mortgage to 6% with no fees. If they can get a couple months' grace period on their mortgage payment as well, that's fantastic!
Why can't responsible home owners get a free refinance? I'm sure there are plenty of homeowners that would love to refinance their existing mortgage to 6% with no fees. If they can get a couple months' grace period on their mortgage payment as well, that's fantastic!
NONE of it is free... Where does that idea come from ?
I'd stick with a current 7.5% 15 or 20 year mortgage and end up OWNING a home rather than signing a restructured one at 6% for 40 years with a giant balloon payment due at the end (that you will most likely not have) due to the deferred fees/interest/principal and have to refi again for another 15 to 30 years...
Are you going to live that long? Do you know how much interest the bank just added to that original note ???? Not only that but most likely they get another bite at that same apple after 40 years !
Now I ask you, why would you want to refi under these conditions ?
From what I have heard about the refi for mortgages, it will not be what many home had hoped for...no walking away so easily, and they will bestuck in their homes. They have to payfor either 40 years or options and only for primary homes, so all the greedy investors are left out as it should. (by the way I'm an investor as well, but not as stupid as many of the other investors are)
The people who thought they can just walk away due the values gone down....surprise...not happening so easy!
Funny sh*t isn't it . And just when everyone thought the golden egg got laid...
NONE of it is free... Where does that idea come from ?
I'd stick with a current 7.5% 15 or 20 year mortgage and end up OWNING a home rather than signing a restructured one at 6% for 40 years with a giant balloon payment due at the end (that you will most likely not have) due to the deferred fees/interest/principal and have to refi again for another 15 to 30 years...
Are you going to live that long? Do you know how much interest the bank just added to that original note ???? Not only that but most likely they get another bite at that same apple after 40 years !
Now I ask you, why would you want to refi under these conditions ?
Because most people don't think any further than tomorrow or their next pay check......
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, and they will bestuck in their homes. They have to payfor either 40 years or options and only for primary homes, so all the greedy investors are left out as it should. (by the way I'm an investor as well, but not as stupid as many of the other investors are)
. And just when everyone thought the golden egg got laid...
