How many bad mortgages does 700 Billion dollars buy?

Originally posted by Niall197
And the government/taxpayer will cover much of their monthly mortgage interest & pay it directly to their lender on their behalf until such time as the homeowner gets back on their feet.

Sounds like socialism to me.

We're doing just fine here without free market capitalism.

[edit on 23-9-2008 by In nothing we trust]

reply to post by Niall197


We're not like that here (this is the anonymous poster from earlier--I haven't gotten around to registering yet)

We pretty much say they're screwed until they go into default--30+days past due in our book...then we offer them some options...all of which damage their credit and many of which also cost money. We're changing our policies, though. At least at my workplace. We're starting to cut people some slack since times are harsh.

Sucks I'm indifferent though. I've kind of got a harsh outlook on it now, since I've worked there for so long. I cant tell which mortgagors are lying to me or who's being honest, and it's made me kind of calloused to the situations. Especially since when I started struggling with my bills and energy costs I manned up and got a second job. It just kills me that I know half the people I talk to are lazy and live off government checks...and that so may people are liars that I can't even tell the ones who are actually struggling apart from the moochers anymore.

not only is it 'How Many', but let's also look at 'What Kind' will the Treasury buy.


first the banks etc who own mortgages will only sell the Gov't their really, really bad mortgage loans.
the mortgage paper holders will keep all of the 'upsidedown' loans because the bailout plan does not allow the Gov't to buy them.


there are several other types of mortgages the holders will sell the Gov't,
like most of the ALT A, and many of the ARMS, along with those really feeble & exotic mortgages with 'teaser rates' that balloon several years out.
These are the mutant mortgages that the conmen & shysters created for the purpose of duping the working poor that were entranced with a unrealistic notion that the housing deals were a way to get rich the easy way.
These mutant, chimera mortgages looked good on the surface but as time went by, the mortgages began to stink. It is these types of paper that were not processed thru 'regular channels' such as the FHA or HUD or Freddie-&-Fannie...because these exotic, hybrid, frankenmortgages,
were nowhere near being 'conforming' or traditional....
these mortgages were cooked up in the backrooms, and pushed through the financing screeners....which lo & behold turned up some outfit that was marginally legal and barely solvent, who agreed to take the risk of the mortgage...(most likely for some $$ kickback disguised as a promotion fee?)

all in all, the Gov't will keep busy with restructuring all those mortgages (which should never have been allowed to be created)~ but generated sales fees & bonuses for layers of management ! The bailout of just the mutated mortgages will likely freeze up, as even the restructered & compliant mortgages won't get sold to Freddie/Fannie because their cash allotments will have long been spent on the millions of under stress conventional/compliant mortgages.

but i'm more worried that the $7800Billion is not all about just the mortgages ~which is the focus of the 'sales pitch' by Treas. Sec. Paulson~
because there is another multi-Trillion $$ problem with mortgage-related-debt-paper... and the wording of the bailout bill does not exclude all those debt instruments from being included in the bailout program.



scratching-my-head

The 700B number is a sham. I couldn't even watch the finacial news yesterday, because all the banners kept referring to it as the 700B bailout.

The number IS A FLAT OUT LIE! It is a floating 700B, the draft of the legislation we do have clearly states 700B at any one time [/q].

Don't worry, this number is not the cost of the proposal by a long shot. Depending on how quickly they can pass the absorbed debt onto other vehicles, this number could repeat again and again, how many times is anyone's guess.

[edit on 9/23/2008 by Relentless]

Ignorance and lack of responsibility the worse sins of all time.
700 billion plus a trillion from Social Security, where do you think the money is coming from???? Your packet, your children futures!!
Take action write your senator, congressmen, please remember they work for you, they get pay with your money, your taxes, your elected them.
If a company made a wrong decision, well let them take responsibility and absorb the lost. In this case, let the government take over these companies at 50% of its value, fire all those greedy executives and do extensive audits. If there is any wrong doing put those responsible in jail and reposes all their assets.

Originally posted by Anonymous ATS
... where do you think the money is coming from???? Your packet, your children futures!!

Only if we agree to pay for it.

All who want to pay more tax to support the current government raise thier hands.

Opps - I already said this - nevermind -

Carry on!

[edit on 9/23/2008 by Relentless]

in these very historic times

i wonder if anyone tipping off people about possible false flag attacks

could be labeled as anti-govt "enemy combatents" or some other B.S

i know the enemy combatent thing hit a snag for bush due to a court ruling against him but i wasn't sure if it was held up in the supreme court yet.

I know this is a little off topic but just wondering

i guess we may find out soon enough .........

www.foxnews.com...

[edit on 23-9-2008 by cpdaman]

Guys The 700$ billion bailout plan is not to buy all the bad assets, this is to free "some" bad assets from the balance sheet and start the banks to lend, now there is no lending at all money market got freezed the bank need a start with some capital, the big guys cant give blank checks so they are asking them to give some assets the assets will be surely valued more in 1-2 years. they are starting the vehicle lets see how much distance soes it runs.............