Rush shared two stories about banks today - one, which I'll share below, that Obama's regime is working to force banks to arbitrarily forgive loans on the houses of people whose homes are worth less than the amount of money they owe on them. (Here's a tip - keep your house, and once we get rid of Obama, home prices will rise and your house will be worth what it should be again).
The second piece of news is that Fortune Magazine points out that the "Problem Bank" ratio is at a 23-year high. There's fewer banks in this country than we've had in the last 25 years, but one in nine of the remaining banks are at risk of failure. And of course the government will have to step in and rescue them with our tax dollars.
Why are they at a risk of failure, one wonders. Because they've loaned money to people who couldn't afford to pay it back?
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In the interests of Order and Method: My Schedule of Regular Posts*Monday through Friday morning - schedules of President, VP and Secretary of State and her diplomats
*Monday through Friday afternoon - List of topics Limbaugh discussed on his program that day
*Monday through Friday througout the day - My posts on anything that I feel like talking about. At least one or two a day, sometimes more.
*Saturday through Sunday morning - An addition to my booklist of political books - covering Democrats, Republicans and other interested parties.Story #5: This Will Cripple Economy: US Pushes Mortgage Deal
RUSH: The Wall Street Journal has a story running today, the headline: "US Pushes Mortgage Deal." Now, if you've been paying attention and you hear that headline, you say, "Uh, what mortgage deal? How many have we had?" "The Obama administration is trying to push through a settlement over mortgage-servicing breakdowns that could force America's largest banks to pay for reductions in loan principal worth billions of dollars." So this is mortgage forgiveness. This is the regime's way of dealing with the foreclosure problem. Punish banks for making loans by making them eat not just the interest but a good deal of the principle of some of these underwater mortgages. So once again you have the regime tearing up and making it impossible for a segment of the economy to do business. Punish the banks for making the loans in the first place and then eat the loan, not just the interest but a good deal of the principal of some of these underwater mortgages.
Now, the idea here is to ease credit, which is Obama's top priority, easing credit. Supposedly that will make it easier to get a mortgage and get housing prices up again. How could it fail? (laughing) Oh, we are so doomed. "Terms of the administration's proposal include a commitment from mortgage servicers to reduce the loan balances of troubled borrowers who owe more than their homes are worth." Well, ACORN ought to be very proud. This is the fulfillment of their mission, and of course it's easy when one of your own is president. I mean this is the subprime mortgage all over. In order to keep these people in their houses, reduce their loan payment. Bank, you eat it. Well, hello, that's what led us to the problem in the first place. The banks are not gonna eat it. They're gonna find a way to make what they're being forced to eat back. So the vicious cycle here just continues. Making banks eat these loans is gonna make loans harder to get. This is not gonna ease credit. It's the exact opposite of what the regime claims they want to accomplish here. This is gonna cripple the economy. It's gonna cripple the housing market. If this was the way to make it all work then we'd all have free houses. Folks, I don't care anymore. You talk about ignorance or naivete, good intentions or whatever, this is simply destructive, purely and simply destructive.
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