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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 03/04/2008 : 14:48:42
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Fed Chairman Ben Bernanke is urging lenders to "forgive portions of mortgage debt held by homeowners at risk of defaulting," says Bloomberg.
Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,'' Bernanke said in a speech to bankers in Orlando, Florida, today. ``Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.''
Bernanke's call goes beyond the stance of the Bush administration and previous Fed comments. By comparison, the central bank's Feb. 27 report to Congress called for lenders to ``pursue prudent loan workouts'' through means such as modifying mortgage terms and deferring payments.
The Fed chief highlighted the threat posed by home values falling below mortgage balances, something Treasury Secretary Henry Paulson played down yesterday. Bernanke said the ``recent surge'' in delinquencies has been ``closely linked'' to the slide of home equity.
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Think positive. |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 03/04/2008 : 14:49:25
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| To me, this just goes to show how serious this whole subprime mess has gotten. In all my 54 years I can't recall it even being suggested that the banks forgive a copper penny of debt. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
 Posted - 03/04/2008 : 17:21:39
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I read this at lunch and laughed.. (What else can you do?).I've been paying my mortgage regularly for almost 16 years. Over the last two years I've been throwing large chunks of extra money against the principle, and will have it paid off within 2 years.
Can I have my principle reduced please?
Here's a link to the same story at Bloomberg, with a little more detail:
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I particularly like the following excerpt:
``We're not going to dictate'' how lenders should alter mortgage contracts, Treasury spokeswoman Brookly McLaughlin said in an e-mailed response to questions.
How magnanamous of her!
Can you imagine the precedent this would set? You might as well tear up every business contract out there! Yeah, the lawyers would LOVE it!
This ranks right up there with El Presidente Jorge Bush asking king saud to lower oil prices, and the king said kiss my a$$?
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/05/2008 : 07:47:56
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Once again the irresponsible will be rewarded and the responsible will be punished. Saving for hard times, spending within your means, and paying your bills is for chumps.  |
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Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 03/05/2008 : 15:23:35
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Maybe we should follow the example of the lilies of the field, “they toil not nor do they spin.”
Then again the ants collect their stores and are ready come winter.
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Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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Fed Chairman urges debt forgiveness
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