Federal Reserve Chairman Ben Bernanke (2nd from left) speaks to colleagues the Federal Reserve Bank of Chicago's Annual Conference on Bank Structure and Competition May 15, 2008 in Chicago, Illinois. The three-day conference called "Credit Market Turmoil: Causes, Consequences, and Cures" runs through tomorrow.
(Photo by Scott Olson/Getty Images North America)
Six years of Republican Rule with Bush and Cheney running the show was a complete fiscal disaster for the USA. This is some of the most hideous debt that has ever been engaged by the USA. How many more days of these idiots? This is a lot of risk taking for any Fed Chairman to embark on considering the future of America rides on it. The Fed isn't suppose to gamble with the assets of this country, they are suppose to insure from the disaster that could beset the country.
Fed Takes a $3 Trillion Gamble to Spur Lending: John M. Berry (click here)
Commentary by John M. Berry
Dec. 5 (Bloomberg) -- Federal Reserve officials are throwing everything they have into the fight to stabilize financial markets and restore economic growth. In the process, the Fed balance sheet is ballooning to $3 trillion, if not more.
It's a risky approach because all the cash piling up in the banking system might spark rising inflation down the road. The alternative -- just relying on traditional interest-rate cuts -- might leave markets and the economy mired in the mud for years.
Fed Chairman Ben S. Bernanke and his colleagues know that when the markets stabilize and the economy turns around, they will have to move fast to take back the extra cash and shrink the central bank's balance sheet....
There is only one way that foreclosure serves the market and that is if there are actually buyers from within the USA ready to purchase property. The Federal Reserve and USA Treasury is in such trouble, they are demanding Americans be put of their homes to make room for ANYONE, including foreign purchasers to 'bailout the bailout.'
US Fed demands foreclosures push (click here)
US Federal Reserve chairman Ben Bernanke has called on the government to take action to stem the increasing number of home foreclosures.
He said banks should consider reducing existing mortgages by writing down negative equity in people's homes.
The Fed chairman said the government had several options, all using public funds, that could reduce foreclosures.
"Weakness in the housing market has proved a serious drag on overall economic activity," he added.
"Despite good-faith efforts by the private and public sectors, the foreclosures rate remains too high."
Mr Bernanke said several solutions were being examined, which would allow borrowers who fell behind with their mortgage payments to stay in their homes....
Bernanke is "W"rong and running scared. There is a model that is working. It was developed by the FDIC, you know the folks that have FOREVER insured the deposits of Americans that bank within the federal system. It is called the IndyMac Model and it is known to benefit Americans already in their homes.
FDIC pushes IndyMac model for troubled mortgages
November 20th, 2008, 4:10 pm The Federal Deposit Insurance Corp. is encouraging private lending institutions to emulate the agency's program for helping distressed borrowers at IndyMac Federal Bank, which the FDIC seized in July. Under the FDIC's program, distressed borrowers can arrange loan modifications with a goal of 38 percent of gross income going to house payments through the use of interest rate reductions, amortization term extensions, and in some cases, principal deferments."I would encourage all industry participants to adopt the FDIC Loan Modification Program as the standard approach in dealing with the grave problems facing us with continued mounting foreclosures," said Sheila Bair, the FDIC chairwoman.Last week, Bair proposed a $24 billion federally-backed bailout program for distressed homeowners, which has been opposed by other members of the Bush Administration.As of today (Nov. 20) IndyMac has completed more than 5,300 loan modifications in response to mailings sent to more than 23,000 eligible borrowers, the FDIC said. Thousands more modifications are in the pipeline....
http://mortgage.freedomblogging.com/2008/11/20/fdic-pushes-indymac-model-for-other-troubled-mortgages/3366/
The FDIC were the folks who bailed out Bush, Sr. oldest idiot, Neil, Silverado and the S&L failure. Everywhere there is a Bush there is fiscal failure. All the time. H.W. even tanked the economy when he was in office. The problem this time is that "W." is the worst of the bunch thus far. He not only bankrupt every company he was ever affiliated with, along with Cheney, now they have the USA economy to add to their resume. When are Americans going to realize they don't need Bushs on God's side they need to speak to their ministers.
The FDIC is the only entity in this mess that can be trusted at this point and they are worth taking recommendation from. Treasury is talking about a lower interest for securities purchased from Freddie Mac and Fannie Mae, but, that was supposed to have happened months ago. So, what has taken so long? Paulson had to make sure, Goldman-Sachs had enough latitude that even Obama can't sink them? I mean for real already !
Financial industry pushes for lower mortgage rates
Under the proposal, the Treasury Department would purchase mortgage-backed securities from Fannie Mae and Freddie Mae to lower the rate on a 30-year loan to 4.5%.Associated PressDecember 4, 2008Reporting from Washington -- Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates in hopes of stabilizing the housing market.
Under the proposal, the Treasury Department would seek to lower the rate on a 30-year mortgage to 4.5%, Scott Talbott, a vice president at the Financial Services Roundtable, said Wednesday. That's about 1 percentage point below the current rate of 5.6%.
http://www.latimes.com/business/la-fi-mortgage4-2008dec04,0,6502961.story
