The BoA/Countrywide Bill
July 8th, 2008 by Peter SudermanThe Boston Globe (news section — not editorial) on the housing bailout:
The mortgage legislation would help lenders like Countrywide, which was acquired by Bank of America last week, by allowing them to transfer their distressed loans to the federal government, avoiding potentially huge losses if borrowers continue to default on their mortgages.
The bill also raises the size of loans that can be purchased by the government-backed mortgage companies Fannie Mae and Freddie Mac, funds a program for cities to buy foreclosed properties, and increases federal support for consumer credit counseling programs.
That’s all true. What it doesn’t mention is the effect of the program on the stability of Fannie and Freddie, both of which took major dives yesterday as the bill moved forward. Ostensibly, the bill was designed to help homeowners. But what sort of help is it if Fannie and Freddie are unable to perform their jobs?
July 9th, 2008 at 6:28 pm
It’s like most govt “services/dis-services” - you used to get what you paid for ±, but NO LONGER true! One of “our” pres. contenders said that it is the ‘responsibility’ of the govt - to be there to “help”! Just look at - N’awlins and the trailers! We don’t need this!
July 9th, 2008 at 6:37 pm
Governmentium: The Heaviest Element Known to Man!
by Anonymous
A major research institution has recently announced the discovery of the
heaviest chemical element yet known to science. The new element has been
tentatively named “Governmentium.”
Governmentium has one neutron, 12 assistant neutrons, 75 deputy neutrons, and 11 assistant deputy neutrons, giving it an atomic mass of 312. These 312 particles are held together by forces called morons, which are surrounded by vast quantities of lepton-like particles called peons.
Since Governmentium has no electrons, it is inert. However, it can be
detected as it impedes every reaction with which it comes into contact. A
minute amount of Governmentium causes one reaction to take more than four days to complete when it would normally take less than a second.
Governmentium has a normal half-life of three years; it does not decay, but
instead undergoes a reorganization in which a portion of the assistant
neutrons and deputy neutrons exchange places. In fact, Governmentium’s mass will actually increase over time, since each reorganization will cause more morons to become neutrons, forming isodopes.
This characteristic of moron-promotion leads some scientists to speculate
that Governmentium is formed whenever morons reach a certain quantity in
concentration. This hypothetical quantity is referred to as “Critical
Morass.”
You will know it when you see it
July 9th, 2008 at 9:14 pm
“Just look at - N’awlins and the trailers! We don’t need this!”
I just LOVE how “conservatives” use their complete & total failure in the aftermath of Katrina to then further their own “govt. is bad & needs to be cut back” Right-wing political mantra. Is this life imitating art or the reverse??
July 12th, 2008 at 1:19 am
One thing’s for sure… when you suggest in the press that we just let GNMA and/or FNMA collapse, you’re out of your gourd. It would suck if the taxpayer once again had to shoulder the burden for the idiot conservative regime of the last eight years’ failure to tighten regulation but, you know what?… if those agencies fall apart, who do you think is going to get wrecked.
Taxpayers. The little guys. The guys who have mortgages through the agencies.
What you’re ACTUALLY talking about is that you don’t want the rich to have to shoulder the burden when taxes on $250K+ incomes get raised. THAT is what you’re talking about. If we have to bail out the agencies, we’ll have to raise that bracket regardless of whether McCain or Obama is the next president.
You’re so self-absorbed… so consumed with self-interest… that you couldn’t care less if the economy goes in the toilet. That’s disgusting. You can’t see the forest for the trees. If Fannie and Freddie go down… we ALL go down.
Say “hello” to The Great Depression, Part II. What amazes me is that conservatives consider themselves “fiscally responsible.” What a joke! Inevitably, conservatives create the card towers that collapse and crush all of us… the little guys on the bottom first.
I love how conservatives talk about Milton Friedman and yet have never READ Milton Friedman. Friedman’s vision of free markets is brilliant. He was a real economist. The problem is really those who co-opt that vision and turn it into a nightmare. Friedman advocated some regulation, but only as much as necessary to keep free markets truly free.
The very same people who are crying foul right now when the government may be forced to bail these institutions out are the same people who cry foul when the government increases regulation. Hello? *knock knock*
I’m sorry for the tone of this comment, but I really find it disgusting when people speak out about things that they KNOW are impossible just to grandstand. You and I both know full well that the American people cannot afford to let the agencies collapse. What you’re trying to do is to make a point. You’re 100% behind the American people, alright; they didn’t create this and they shouldn’t have to clean it up.
Let’s say you throw a birthday party for a friend. At this party, you have a wet bar with every kind of wonderful booze that the mind can imagine. The guest of honor gets really hammered, throws up on your floor and passes out. Do you wait for him to wake up and make him clean it up, or do you just take off your skirt and clean it yourself?
You threw the party. Things like this happen. It’s your house. Clean it up.
July 12th, 2008 at 1:27 am
And by the way… I am referring to Matt Kibbe’s comments, not yours. I get your point. I just find it incredbly arch of this organization to suggest that, if FNMA and GNMA fail, that we ought to just sit back and fiddle as global markets go up in smoke! How ridiculous is that?
Drastic times call for drastic (yet responsible) measures. The responsible part, in this case, may come AFTER the fact. What other countries have done successfully is to take over financial institutions, fire any/all staff responsible for the failures (up to and including the board level), restructure them and then put regulations in place designed to keep such debacles from occurring again.
Japan’s stupid move was bailing out the banks and leaving the directorate in place. Along with the continued corruption.
So, my point had little to do with BoA/Countrywide and really dovetailed off of your comments on the agencies. Mr. Kibbe has a right to his intuition, however counterintuitive it might be.
October 12th, 2008 at 6:23 am
Just to try understand author… but better solution was read comments.
now all is clear.