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View Diary: Obama's Presser Video & Transcript Plus Response to McCain (289 comments)

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  •  A little help?? (1+ / 0-)
    Recommended by:

    Will you explain how govt buying mortgages directly would accomplish trickle up? I'm not trolling. I'm in the midst of an online discussion and really want to know how this would benefit homeowners and the over all economy.

    Thanks in advance!

    The suspense is terrific. I hope it'll last...

    by JeremiahRosemont on Tue Sep 23, 2008 at 04:11:58 PM PDT

    [ Parent ]

    •  Jim Cramer on MSNBC... (4+ / 0-)

      is talking about this right now on Matthews' show. It sounds like he believes the "security" of the government holding the actual paper (mortgage) will boost confidence and thus reduce volatility - leading to a stabilization of home values and potentially value growth. That's how it would "trickle up". Maybe the video will be up soon??

      •  Jim Cramer has made a living (8+ / 0-)

        off of being wrong, time and time again.

      •  Cramer and other talking heads are full of shit (6+ / 0-)

        The $700B is to buy nucclear waste mortgage paper from Friends of Hank. In the process of filling their pockets with taxpayer money, there will be a new, ABOVE MARKET PRICE for this nuclear waste. This will help all banks and hedge funds avoid taking losses on the paper they hold.

        So, the taxpayer is going to pay premium price for garbage paper, and banks get to avoid paying for their sins.

        Do a google search on financial/market blogs for "hold-to-maturity price"

        McCain/Palin - Worse than Bush, crybabies to boot.

        by MAORCA on Tue Sep 23, 2008 at 04:36:04 PM PDT

        [ Parent ]

      •  Yes, but Kramer and Perlstein of WaPo (2+ / 0-)
        Recommended by:
        Kitty, Losty

        are making claims I'm not buying about how irrationally undervalued these mortgage-backed securities are.  They're also acting like real estate prices themselves can bounce back up quickly when in fact they're still overpriced in many markets.  These guys are at least admitting that a lot of risk would be taken on--all the more reason to insist on equity warrants.  They're wrong that Paulson's plan is the best solution out there.  Defintiely wrong.  Dems need to hold out for something like the Dodd plan.

        McCain/Palin = Unstable/Unable

        by DrFitz on Tue Sep 23, 2008 at 04:38:01 PM PDT

        [ Parent ]

    •  With Obama's plan, the mortgages would be (1+ / 0-)
      Recommended by:

      renegotiated so that the homeowners are able to make the mortgage payments meaning there would be less foreclosures.  Many many people have $300,000 mortgages on homes that are now worth only $200,000, so fix the mortgage and the banks now have someone who can make their payments and their mortgage paper is now realistically valued.  Why bailout the banks by giving them money for worthless paper when if you gave that same money to the homeowners, it would stabilize the house markets and help everyone.  The money would trickle up from Main Street to the banks, not trickle down because you know damn well the banks aren't going to share their money with ordinary people.

      He's not an African American candidate, he's and American candidate. - Jean Weiss on CNN

      by vernonbc on Tue Sep 23, 2008 at 07:22:29 PM PDT

      [ Parent ]

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