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View Diary: UPDATED!! Urgent: House to Consider New Cramdown Legislation This Week (110 comments)

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  •  Interesting analysis but... (4+ / 0-)
    Recommended by:
    RunawayRose, route66, Einsteinia, Mayfly

    ... since banks aren't lending anyway, what's the difference?
    Besides, I kinda like the idea of consumer relief. Since the banks are operating from a "moral hazard" stance in not allowing people relief from toxic mortgages, then they should have the same standard applied to them.
    Unclean hands deserve no reward.

    (1) D.I.E.B.O.L.D.: Decisive In Elections By Ousting Liberal Democrats.
    (2) R.A.T.S.: Roberts, Alito, Thomas, Scalia.
    (3) -8.75, -8.10

    by Archangel on Tue Dec 08, 2009 at 08:11:09 AM PST

    [ Parent ]

    •  Consumer relief is more negative than positive (0+ / 0-)

      Few people will have their mortgage principles reduced through cramdowns.  

      Those most likely to benefit will be those who purchased homes with little or no money down (i.e., little or none of their own money was at risk when they purchased the home).  So when they get their principle reduced by 20-25% - they get the equivalent of 3-4 years of no mortgage payments, and lower payments thereafter.

      Because of the changes in the mortgage market, far more people will have their home values reduced, pay more for new mortgages, be unable to borrow against their home equity for a child's college, and no longer qualify for mortgages when they would have qualified under earlier conservative lending rules.

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Tue Dec 08, 2009 at 08:46:03 AM PST

      [ Parent ]

    •  precisely. (1+ / 0-)
      Recommended by:

      I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's. - Mark Twain

      by route66 on Tue Dec 08, 2009 at 09:02:28 AM PST

      [ Parent ]

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