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View Diary: McCain's Mortgage Bailout Plan Will Backfire (10 comments)

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  •  Thanks for the comment Pete... (1+ / 0-)
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    wa ma

    The diary went an hour and half without one, and I referenced it a half dozen places.

    For some reason this gets no interest, while the nature of the bill that emerges will have a profound effect on our housing policy for decades.

    There are many remedial regulations, such as requiring fiduciary responsibility towards lenders by mortgage agents that everyone agrees must happen.  But it is sinful that people like Greenspan and Bush, who if legally blind, could have seen the consequences of this balloon.  

    The problem, in my mind, is that our housing policy, in order to promote housing-which is populist, and promote the financial industries profit in this area, demands constantly rising home prices.  

    When a home can be purchased with zero down, as was the case, any decrease, any adjustment in prices, is an invitation to abandonment.  And this is what we are seeing.  The low fed rate for an extended time was actually giving money away, as it paid back with dollars worth less because of inflation.

    This is a very complex, but meaningful area.  I have learned something about it, and I am trying to present the problems of any bailout.  

    But the damage was done by the balloon, and any fix will create it's own problem.

    Read my reference at the end of the diary and it describes the Frank-Dodd proposals.  I don't actually know the current status.  The senate has passed a minimalist bill, with no mortgage bailout, but the house is still in committee.

    •  The Senate /Baucus Grassley giveaway. (1+ / 0-)
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      fake consultant

      That bill is an abomination, a sop to the lenders without any constructive use for anyone else. Companies get a "get out of jail free card" to use their bad year to recapture previous taxes paid for four years!. Do we taxpayers have anything like that?
      20 years ago or more,there was an income averaging provision in the Federal tax code to help itinerant artists, people who only made sporadic incomes but that got deleted.

       This Senate bill reminds me of the Henry Paulson Treasury speech of three weeks ago where "reforms of banking" were discussed, streamlining and more creative products for the banks...so we can have an even bigger and more vicious bubble somewhere down the road not too far away. Not a peep about genuine regulation or accountability. Not a peep about the current liquidity crisis.

       The Dems have been feeble here. There is not a bit of leadership from the Bush Cheney gang in any area, especially one as close and special to them as banking.

      He's a survivor, not a hero. Unlike most Republicans, he HAS dropped bombs on a people and country that did not attack America. It fits: Warmonger

      by Pete Rock on Sun Apr 20, 2008 at 11:50:22 PM PDT

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