The following post from the Mark to Market forum at Capitalstool.com probably expresses the frustrations that so many have toward this government deal to delay the resets on subprime mortgages for 5 years. It was posted last night by Hausbare. Here it is, in its full unexpurgated, glory. By the way, neither I, nor the other writers or staff of The Wall Street Examiner, necessarily share in this opinion. They are those of the writers only. We’d love to see your comments too.
Aren’t we lucky to live in a Democracy where Free Mkt Capitalists can
lobby for Communism?!
Shrub is turning into a “Compassionate Socialist” and Christ only knows
what Hillary is turning into. Suddenly, they’re conceptually aligned.
Both are wanting to interfere with said free markets and change deals in mid stream. Hillary is good at this — remember White Water?
And let’s not forget our collective guilt as racists and welcome the most unabashed
free marketer — or should I say — extortionist to Wall St on the 10th, none other than the REVEREND JESSE JACKSON. He will be marching on Wall St in protest
of his disenfranchised minions demanding Mortgage Reparations!
So Shrub is leaning toward Communism, Hillary toward…. Theocracy or maybe Sheocracy, and Jesse toward organized crime… HEY kinda like Wall St!
Supposedly, Shrub has reached an agreement with U.S. Bankers of some sort.
Hillary’s plan — not to be out done — is “voluntary”. Wonder if Shrub’s is “voluntary.”
And will he/she/they decree that this is a Marshall Law thing so that law suits cannot be filed in time of national emergency or some such thing?
And supposedly this will not effect anyone monetarily — in a bad way.
Maybe they’ll use the half billion dollars they gave to Hurricane Katrina victims
for emergency relief, which said victims squandered on booze, smokes, tattoos, and gambling. (Uncle Sam is trying to track down the miscreants and get his money back, so he can give it to the Mortgage Victims, who will HONESTLY represent themselves as victimized and traumatized when they apply for the Teaser Rate Relief.)
I guess they’ll have to set up a new bureacracy to run this thing, and won’t they have to have hearings on this in Congress? Or will it be where Shrub can shoot first and be asked questions later.
And just think, its all happening around Christmas time. (I don’t mean to offend anyone by saying Christmas)…. er … around Winter Solstace Time.
Is this a great country or WHAT?
I have previously made my opinion known that the deal is much ado about nothing. It should fall apart within days. It’s unenforceable, will result in additional writedowns, trigger countless lawsuits, and the simple announcement of the deal will reduce the mortgage market to a shambles. The secondary mortgage market will cease to function. How do you price this stuff if the government can force a change of terms at will?
Liquidity moves markets!Follow the money. Find the profits!
I would just add this. Anyone who sold mortgage paper that carried a coupon escalating to 13% obviously knew that they were fleecing the borrower.
Anyone who bought this paper deserves whatever losses they suffer. The whole process of suckering weak credits into this toxic garbage was a crime. Mass theft on the greatest scale in history.
The mortgage bankers who created, sold and packaged this crap should all go to jail.
Morally, modifying the terms to reverse the devastating effects of this crime may be the right thing to do. The creators and holders of this toxic junk deserve whatever losses they suffer. Willful ignorance is not an excuse. The practical effect–everybody loses and the markets have been and will continue to be devastated– is simple proof of the maxim, “What goes around, comes around”, or even better, “You get what you pay for.”
Let the prosecutions begin. Hopefully, the banker/criminals who originally created this stuff will not get off scot-free.