Tuesday, Oct 16, 2007
US: Running out of options on foreclosures
Bloomberg: HUD's Jackson Says Foreclosure Rescue Options Are `Exhausted'
The U.S. government has run out of options to stem foreclosures and must rely on Congress to enact legislation to prevent people from losing their homes, Alphonso Jackson, Secretary of Housing and Urban Development said today
Posted by alan @ 09:11 PM (527 views) Add Comment
6 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. stillthinking said...
Curious that this is called legislation to keep homes when really this is a law to extend the repayment of debt. I think that most of the American people who have unfortunately been scammed, as the UK people have been scammed, with 25 year heavy debt obligations, would be far happier to declare bankruptcy and move to rented accomodation and pretend the whole disaster never happened.
Unfortunately, in the US as well as the UK, quite a few are just going to be paying down their debts for 12 years if they are lucky. Fortunately we can bring in fully grown foreigners to replace our own workforce. Which is quite right considering couples both have to work for 25 years. Not an amazing strategy but doubtless good for some.
Was the feminist movement about the right to work to pay off debt?
While I am on the subject, the move by the US government to set up the "superconduit" seems to be indicating to my self (ignorant) that CitiBank is scared of a Northern Rock run.
1) CitiBank has a lot of SIVs ( bad don't buy assets).
2) If they are sold at market price then they are marked to market
3) As the value is so low CitiBank has to increase its reserves
4) They don't have the reserves
5) Run on CitiBank or the US government prints money to save their case.
5) a) They set up an independant company to buy at a high price a few of the duff assets to keep the values. This keeps the market value up. This absolves them of the requirement to increase their reserves(which they can't). This stops the run on CitiBank.
Banks are all about confidence to be fair, none of them have enough cash to pay back the depositors in an emergency. However, not having enough money but having enough for anybody who wants their cash back is totally different from not having enough cash for even that.
The UK government just supplied an additional 12 billion sterling into the economy from nowhere, I wonder what the US will do.
Please criticise this post as really I am guessing.
2. deepak said...
Still thinking, I have a very small point to make.
Could all this speak remember its just speak and no action be, because of upcoming US election in late 2008 or early 09.
Any such speak will get you a lot of votes to win as so many people are affected (225,000 to 300,000 foreclosures a month)
even though you might not do anything there after.
3. whiteknight said...
Its a cards face up time between certain institutions isn't it. (at least in "behind closed doors" session).
This is the size of the over-run buffer they figure they need to avoid having to panic sell (against each other as the prices are falling).
.. and what a buffer.
4. whiteknight said...
is Chuck Prince still in charge at Citi?
5. whiteknight said...
.. dont see what they can do with all the hedge fundie type people holding the same and similar though..
$1,400 billion was a starting estimate of these types of vehicle wasnt it?
all too complicted for me.
doesnt look nice at all.
6. David Smith's Sub Prime. . . said...
Feminism wasabout Wandsworth and Westminster parlour-speak, oh, and improving the lot of the chattering baby boomer generation, not improving the lot of working people...