Comments on: SF Fed’s Yellen Troubled by Economic Data, Pushes Mortgage Aid http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html Mon, 23 Nov 2009 00:58:00 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: River http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23888 River Fri, 31 Oct 2008 14:08:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23888 Fresno Dan...<br/><br/>It is not a 'bailout of home owners' that is being sought. It is a another bail out for the clowns that caused this financial disaster...the banks.<br/><br/>If recourse provisions are placed in 'mortgage work out loans', who benefits? The banks suddenly have 'money good' mortgages that will make some of the level 2 and 3 garbage they are sitting on look better, perhaps even good enough to sell to some other fool.<br/><br/>I have seen no plan yet that is beneficial to home owners. Fresno Dan…

It is not a ‘bailout of home owners’ that is being sought. It is a another bail out for the clowns that caused this financial disaster…the banks.

If recourse provisions are placed in ‘mortgage work out loans’, who benefits? The banks suddenly have ‘money good’ mortgages that will make some of the level 2 and 3 garbage they are sitting on look better, perhaps even good enough to sell to some other fool.

I have seen no plan yet that is beneficial to home owners.

]]> By: eh http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23872 eh Fri, 31 Oct 2008 12:56:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23872 <i>As Bernanke pointed out last spring, preventable foreclosures are what we need to focus on above all else.</i><br/><br/>I would like to see a definition of 'preventable foreclosure', and also an explanation of exactly how it can or should be prevented. <br/><br/>And Bernanke has pointed out a lot of things <a HREF="http://www.forbes.com/2007/05/17/bernanke-subprime-speech-markets-equity-cx_er_0516markets02.html" REL="nofollow">that turned out to be completely wrong</a>. As Bernanke pointed out last spring, preventable foreclosures are what we need to focus on above all else.

I would like to see a definition of ‘preventable foreclosure’, and also an explanation of exactly how it can or should be prevented.

And Bernanke has pointed out a lot of things that turned out to be completely wrong.

]]> By: fresno dan http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23855 fresno dan Fri, 31 Oct 2008 10:53:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23855 I agree with the predominant view that bailing out homeowners is a bad idea. <br/>Government operates by written rules at the consumer level. Who will actually get refinanced and what will the benefit be? If by missing a few payments you can knock 200K off your mortgage, or 300$ a month off your monthly house payment, lot of people will be inclined to do that. People do not want to be played for suckers. <br/>What criteria should be used? Should any house over 750K be in the program? Should any family with income over 200K...150K... 100K be eligible??? I agree with the predominant view that bailing out homeowners is a bad idea.
Government operates by written rules at the consumer level. Who will actually get refinanced and what will the benefit be? If by missing a few payments you can knock 200K off your mortgage, or 300$ a month off your monthly house payment, lot of people will be inclined to do that. People do not want to be played for suckers.
What criteria should be used? Should any house over 750K be in the program? Should any family with income over 200K…150K… 100K be eligible???

]]> By: eh http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23847 eh Fri, 31 Oct 2008 09:30:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23847 If she thinks people need mortgage aid, she's free to choose a borrower -- at random even -- and start making their payments for them. Just don't start asking me to join in. If she thinks people need mortgage aid, she’s free to choose a borrower — at random even — and start making their payments for them. Just don’t start asking me to join in.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23837 Anonymous Fri, 31 Oct 2008 08:30:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23837 All of the proposed 'work outs' so far have included a provision to make the reworked mortgage a recourse loan.<br/><br/>No sane person is going to sign such a loan agreement when they are waaaay underwater on their home.<br/><br/>All the government is seeking is the insurance of recourse loans to help bolster the banks balance sheets. With recourse loans on the books the banks will suddenly have money good mortgages to replace the worthless garbage that they are now sitting on. The Fed doesn't give a damn about home owners or they would not be including rediculous recourse provisions to loan work outs proposals. All of the proposed ‘work outs’ so far have included a provision to make the reworked mortgage a recourse loan.

No sane person is going to sign such a loan agreement when they are waaaay underwater on their home.

All the government is seeking is the insurance of recourse loans to help bolster the banks balance sheets. With recourse loans on the books the banks will suddenly have money good mortgages to replace the worthless garbage that they are now sitting on. The Fed doesn’t give a damn about home owners or they would not be including rediculous recourse provisions to loan work outs proposals.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23825 Anonymous Fri, 31 Oct 2008 06:28:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23825 REOs and their sales continue to grow thus lowering existing home values. The excess housing will take years to assimulate. Plus you can't force consumers to spend. How's that for predictors? REOs and their sales continue to grow thus lowering existing home values. The excess housing will take years to assimulate. Plus you can’t force consumers to spend. How’s that for predictors?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23820 Anonymous Fri, 31 Oct 2008 05:10:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23820 I think it is deeply worrisome that Yellen states a "correlation" is a "predictor" I think it is deeply worrisome that Yellen states a “correlation” is a “predictor”

]]> By: Don http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23817 Don Fri, 31 Oct 2008 04:13:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23817 I'm assuming that the AIG move to have all its CDS's guaranteed is causing this move toward mortgage relief. We have already spent or promised billions to AIG, and we might well have to help them with their foreclosure losses. In other words, since we're already on the hook, why not try and halt the foreclosures. I'm not recommending that necessarily, but I think it's behind these moves to forestall foreclosures. Again, we might well end up dealing with them anyway. And that's just AIG.<br/><br/>Don the libertarian Democrat I’m assuming that the AIG move to have all its CDS’s guaranteed is causing this move toward mortgage relief. We have already spent or promised billions to AIG, and we might well have to help them with their foreclosure losses. In other words, since we’re already on the hook, why not try and halt the foreclosures. I’m not recommending that necessarily, but I think it’s behind these moves to forestall foreclosures. Again, we might well end up dealing with them anyway. And that’s just AIG.

Don the libertarian Democrat

]]> By: doc holiday http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23816 doc holiday Fri, 31 Oct 2008 04:07:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23816 Speaking of weird GDP tidbits related to PPP:<br/><br/>GDP includes the output of the multinational sector, which is very significant in Ireland (over 90% of Irish exports are made by foreign-owned firms), it is more useful to use Gross National Product - the total value of final goods and services produced in a country plus income from Irish capital held abroad set-off against transfers of net earnings of multinationals - in effect net income outflows from Ireland . In Other OECD countries, there is only a marginal difference between GDP and GNP.<br/><br/>Because exchange rates do not always reflect international differences in relative prices, The comparison of GNI per capita estimates into international dollars using purchasing power parity (PPP) rates, can be viewed here. <br/><br/>The PPP method gives Ireland a per capita income of $35,900 in 2006 compared with the Atlas method of $45,580.<br/><br/>Gross national income per capita 2007, Atlas method and PPP <br/>http://siteresources.worldbank.org/DATASTATISTICS/Resources/GNIPC.pdf<br/><br/>??? Speaking of weird GDP tidbits related to PPP:

GDP includes the output of the multinational sector, which is very significant in Ireland (over 90% of Irish exports are made by foreign-owned firms), it is more useful to use Gross National Product – the total value of final goods and services produced in a country plus income from Irish capital held abroad set-off against transfers of net earnings of multinationals – in effect net income outflows from Ireland . In Other OECD countries, there is only a marginal difference between GDP and GNP.

Because exchange rates do not always reflect international differences in relative prices, The comparison of GNI per capita estimates into international dollars using purchasing power parity (PPP) rates, can be viewed here.

The PPP method gives Ireland a per capita income of $35,900 in 2006 compared with the Atlas method of $45,580.

Gross national income per capita 2007, Atlas method and PPP
http://siteresources.worldbank.org/DATASTATISTICS/Resources/GNIPC.pdf

???

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic.html#comment-23815 Anonymous Fri, 31 Oct 2008 03:13:00 +0000 http://www.nakedcapitalism.com/2008/10/sf-feds-yellen-troubled-by-economic-data-pushes-mortgage-aid/#comment-23815 How about- America -Growing Wasteland? <br/><br/>California rationing water as dust-bowl rages.<br/><br/><br/>http://tinyurl.com/5axvtz How about- America -Growing Wasteland?

California rationing water as dust-bowl rages.

http://tinyurl.com/5axvtz

]]>