An August Surprise from Obama?

An August Surprise from Obama?

blogs.reuters.com

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion.

The key date to watch is August 17 when the Treasury

(visit the link for the full news article)

ALL WITHOUT CONGRESSIONAL CONSENT.

I'm sorry for those who are underwater in their mortgages, but this is not the right thing for the American economy. This is HORRIBLE news. The only, and I mean ONLY reason Obama is doing this is because he KNOWS he and his fellow lackies in Congress are in DIRE political peril because of his total ineptitude as a President. There is NO altruistic goal here nor will the outcome be positive in the long run.

Keep in mind the political and economic context. The nascent recovery is already running out of steam. Wall Street economists just downgraded the government’s second-quarter GDP estimate of 2.4 percent to around 1.7 percent. And as even Treasury Secretary Timothy Geithner is warning, the unemployment rate may well begin to rise back toward the politically toxic 10 percent level given such sluggish growth. Many in the White House thought the unemployment rate would be dropping sharply by this point in the recovery.

But that is not happening. What is happening is that the president’s approval ratings are continuing to erode, as are Democratic election polls. Democrats are in real danger of losing the House and almost losing the Senate. The mortgage Hail Mary would be a last-gasp effort to prevent this from happening and to save the Obama agenda. The political calculation is that the number of grateful Americans would be greater than those offended that they — and their children and their grandchildren — would be paying for someone else’s mortgage woes.

"Many in the White House thought the unemployment rate would be dropping sharply by this point in the recovery... What is happening is that the president’s approval ratings are continuing to erode, as are Democratic election polls."

We all know that Obama is the consummate narcissist, and there have been many, many cases of Democrats distancing themselves from their dear leader out of their own survival mechanisms.

Ga. Democratic candidate dodges Obama

Georgia's most prominent Democrat will be nowhere near Barack Obama when the president comes to Atlanta on Monday.

The article says that our children and grandchildren will be paying this debt but I beg to differ... there is absolutely NO WAY that even they will be able to. This man is using taxpayer money which can NEVER be paid off in an attempt to stave off a GOP upset in November.

The word that comes to mind... RAPE!


blogs.reuters.com
(visit the link for the full news article)

[edit on 5/8/2010 by Iamonlyhuman]

I really... really, really, really want to know how he can do this without congressional approval. I really do... Anyone have any insight on this?????

It was the governments lack of regulation on the banking sector that allowed this to happen in the first place.

So I think the government is doing the right thing (if this does manifest into reality), by giving people a second chance for something the government (passively) caused.

They should have just gave the bail out to homeowners with the agreement that they pay it on their homes in the first place. The money would have went to the banks.

reply to post by Iamonlyhuman


The same way Bush was able to become a virtual dictator - with executive orders.

Originally posted by ghostsoldier
It was the governments lack of regulation on the banking sector that allowed this to happen in the first place.

So I think the government is doing the right thing (if this does manifest into reality), by giving people a second chance for something the government (passively) caused.

I'm sorry, I have to totally disagree with you. This is NOT the right thing to do when THE UNITED STATES IS BROKE! So some people will get some relief from their mortgages being upside down... what about paying that 700 BILLION back on top of THIS! What happens when, after relieving them of their upside-downedness (lol, sorry), they lose their jobs and aren't able to pay the rest of the mortgage?

Will you be able to afford taxes at 40% of your income (assuming middle class)? Will our children? Will our grandchildren? Will low income families be able to afford 25%? Is this what will bring back jobs???? Somehow, I think that gigantic tax rates will NOT stimulate the economy...

WE NEED JOBS... THIS, is not going to create ONE SINGLE JOB... AND, I would go so far as to say that it literally could diminish job availability. How many small businesses will be able to pay the increased tax burden? How many medium and large ones will LEAVE THE COUNTRY because of the tax burden???

reply to post by Iamonlyhuman


Don't worry about where the jobs are coming from..... all the unemplyed will be getting jobs designing & manufacturing weapons for the military and other related military jobs... and the rest will be using those weapons fighting terrorists in far away lands in more endless wars.....

[edit on 5-8-2010 by john124]

Today's New York Times lead story:

Private Growth Is Tepid as U.S. Economy Sheds Jobs Overall

The unemployment rate held at 9.5 percent as private employers added 71,000 jobs in July, fewer than forecast, while governments cut their payrolls by 221,000.

If this only applies to Fannie Mae and Freddie Mac, then I am wholeheartedly against it. It would not be fair to all of us who have mortgages through other lenders. This must be an "across-the-board" bailout, or no bailout at all.

Beyond mortgages, its still showing classism. What about people who already lost their homes to these criminals? What about people who never had the opportunity to buy a house yet still paid their taxes...what they dont count? Total and utter BS. It seems like theyre trying to insight riotous behavior..is that the plan? Is martial law in America at the conclusion of all this idiocy?

Im afraid this president decided to stick his head right up the same arse his predecesor was investigating

I just thought about this video from right after the election. I wonder if this lady has a mortgage that's upside down... somehow I doubt it. Anybody want to tell her about Obama paying someone else's bills and not hers?



Sorry for laughing but, well...

[edit on 6/8/2010 by Iamonlyhuman]

Once again the govt is trying to be the answer. The govt is not the answer, it's the problem.
It needs to stop propping up insolvent banks and let all the housing inventory that's being hidden on their books come on the free market. Price discovery will then take place, which will make housing affordable, and the system will correct itself.
The reason this will not happen is that the banks own the govt through the 'federal reserve'. Private banks = federal reserve pure and simple. The banks do not want to take their losses and go out of business and since they own the govt........
This stunt is just more monetizing debt, quantitative easing, printing money, whatever you want call it. They will play this game until confidence is lost in the dollar, and it ain't far off. Hyperinflation will be the end result.

Originally posted by hadriana
They should have just gave the bail out to homeowners with the agreement that they pay it on their homes in the first place. The money would have went to the banks.

Stole my thunder. I was just going to write that if the $11,000 per household was actually given to the American people and not to Pelosi, etc to spend for us, things might be different.

But then again, you'd have that percentage that would have spent the money on tattoos, boob jobs, booze and other stupid things.

Originally posted by Aggie Man
If this only applies to Fannie Mae and Freddie Mac, then I am wholeheartedly against it. It would not be fair to all of us who have mortgages through other lenders. This must be an "across-the-board" bailout, or no bailout at all.

Doesn't Chris Dodd and Barney Frank have something to do with Fannie Mae and Freddie Mac??