The Government is now the Lienholder of your Mortgage!

WHAT!?

The only financial string the Government really had to hold over the heads of most private citizens was the IRS and we all know how crooked they tend to be. Now they are bailing out the failed mortgage companies which makes those mortgage companies now answerable to the Government.

Think of it this way, with the Patriot Act the Government can come in your house and take you away and there is nothing you can do about it.

Now with all these bailouts the Government can come in and take your house away and there is nothing you can do about it.

To me this is getting very scarey the amount power the Government is taking away from us every day. We were once under the "thumbprint" of power but now it has grown to "full body weight"

[edit on 19-9-2008 by jwstarry]

im from the uk and have been thinking the exact same thing.

over the last few months, and no doubt the month to come, the free markets of the world are turning into government controlled markets.

im fairly sure its completly wrong, and i dont see how any persons tax pounds or dollars should be used to stop the worlds evilist companies going out of business!

in uk, its just as bad, we have the government changing competition laws so banks dont go out of business!! i cant tell you how wrong i feel that is (and i dont care if im with HBOS, they are a complete bastard of a company and to make it worse ive never been allowed a bank by anyone else.)

we are heading to a world money system controlled by governments, and that can only be bad news!

(also, whats stopping this becoming a legal president in the world of business, if the governments going to bail one company out of going bankrupt, surely any company should be able to get this help !!!! just makes you think who is asking for the help and why oh why are the governments giving it out!!)




[edit on 19-9-2008 by boaby_phet]

Actually is the tax payer the one are now the lienholders as we are supposed to own the government but as usual we will not see a penny on this deal.

But rest assure that we are paying for that tab.

This is why we need to get active in contacting those in Congress. The action taken today was a long time in coming and is best for all parties involved. Everyone can win if this is done properly.

The financial system got overwhelmed. Banks had these defaulted mortgages on their books, that in the whole are probably only worth 50% through foreclosure. However noone had the capital to buy these loans so the market prices were 10-20% on the dollar if there was any intrest at all. This froze up the entire system to the point that all banks were in the position to fail.

Shorting a stock is selling it without have ownership of it. The loose enforcement of rules allowed big money hedge funds to short with impunity driving down the shares of these companies. The bad loans along with low share prices put all these companies at immediate risk. The banning of short selling was a neccesary step to stem the tide.

So basically waht is happening is the goverment through Freddie and Fannie will buy all the troubled mortgages. I imagine if they are worth 50% on the dollar, the they will sell to the goverment for 40% on the dollar. The goverment will then hold these loans and it will be left to future legislation what will happen to them. This is where it gets tricky.

1. Do you then resell the loans to private business so that they can make the 10% plus what will undoubtably be market appreciation, giving them the incentive to then foreclose on the original homeowner.?

2. Or do you go back to the original homeowner and renegotiate the loan for say 60% on the dollar. This lets the homeowner stay in house. Keeps foreclosures off the market. The Goverment makes 20% on the dollar less expenses. The banks get rid of their troubled loans for more than they can get now and before they have to declare bankruptcy. The market benefits as these will now be solid loans which can be sold to private investors. The economy benefits as all of America begins a new era of prosperity.

Make yourself be heard. Do you want those with lots of money to be able profit off of this at the detriment of the whole economy or to do you want the average american to get a bit of relief which will lead to economic propsperity for years to come??

reply to post by disgustedbyhumanity


You make a lot of good points, but I can't help feeling that this, like virtually everything economic, was engineered. And if it was engineered, we can write our congresscritters 'til the cows come home and we will not see a benefit.

The benefit will go to those who did the engineering.

Like I was just saying on another site this is too much like raganomics to me! And yes the governemnt now "OWNS" the entire finicial framework of this country, and WE the taxpayer are going to pay each and every penny back and then some!

The govenerment will get many of these houses that have already been forclosed upon and they will just unload them! The people in the surrounding homes are going to see thier home value plummet! This is going to help free up "credit"?!?! This is assuming that people are not buying homes because they can't get mortgages, I am not an economist or real estate person but from what I have seen personally that is NOT the case! People are not buying homes because they can not afford them or are worried they are going to lose thier jobs so are not even considering it. If they already own a home then they can't sell it so they can't move!

I don't think the american people need more "credit" right now??? Personally I want my 800 BILLION dollars back, cause you all need to remember this OUR money the fed is giving away to multi-billion dollar corporations here!

reply to post by disgustedbyhumanity


No I completely disagree!!! I get what is happening behind the current crisis and while a complete and catastrophic economic collapse would suck I feel like this is just postponing the invititable! Here is why...

1. This is not in the long run going to fix the dollar, if anything it has scared foriegn investors away... It does not bode well for this country when we have to "rescue" our economy!
www.time.com...

2. The government has never struck me as "having a great head for business"! the 100 dollar hammer, thing! they are going to sell at least the foreclosed homes for the lowest bidder the alternative is sit on them which NEVER works because the homes quickly fall into dis-repair-- either way what does that mean..... increased falling home prices!

3. Why do we need more "credit". We need to STOP assuming debit not take on more! Maybe unavailability of credit will be a good thing for a while, make us more self sufficent, yeah it will be harder to buy big purchases but we could try "saving" money for once!
www.americanprogress.org...

4. What is this going to do for me? Hey I pay my mortgage on time am I going to get rewarded? The answer is NO and while I should not expect to I also should not have to pay for this debt!!! THe S&L Loan scandle cost each and every taxpayer in the US for a total of 124 billion of the 150+billion dollars we gave out for a net loss of about 80%! How much are we going to lose here and we are going to lose, history tells us that! So lets say we get out of this for 1 trillion, which I think is a low estimate then that leaves us footing about 800 billion! Where are we going to get this money? Do we increase taxes? Or do we make some cuts, hey I know we will trim some off education or social security!
www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf

5. Finally and this is the most important thing there are so many things affecting this country right now high unemployment, gas prices that are most likely going to stay above 3.25 which are jacking up not just the price of an average person's commute but also pretty much EVERYTHING you buy! And guess what folks winter is right around the corner, adn feul costs typically go up!

6.Which bring me to my last point... Inflatation... what is this plan going to do about that?

reply to post by disgustedbyhumanity


If the lenders would have help those who needed modification to there loans we may have avoided this mess there all about profit and the hell with the rest yet they can get a bail-out but I cannot.