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Bush To Announce Sub-prime Plan

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http://news.bbc.co.uk/1/hi/business/6971746.stm

Not sure how this 90+ days in arrears loan is going to work???

I posted this link a few weeks ago. A bit conspiracy like but given this news from Bush, highly relevant.

http://www.bullnotbull.com/bull/node/20

Four or five years ago I began to wonder how economic globalization would work out. I figured that the long term goal would be for people around the globe to earn similar pay for like work. In order for this to happen either the industrialized west would have to have a sharp decrease in pay or the far east and third world nations would have to enjoy a sharp increase in pay. My initial inclination was that it would be a combination of both, the east would rise while the west’s earning rate would decline. Likewise the middle class of the west would experience a decline in their standard of living while the east’s middle classes standard of living would rise.
As early as five years ago I became convinced that the true economic leaders were looking for a way to take away the assets of the American middle class in a similar fashion. I thought that they would find a way to mire consumers in unrepayable debt and then forgive the debt in exchange for ownership of middle class assets.
What if the lenders and the owners of all the assets of the American middle class offered terms to forgive the debt? What if they offered to help you pay off your debt by garnering your wages? What if they said that they would allow you to stay in your home while they took 30% of your wages to pay off your mortgage and credit card debt? What if the condition were that once you payed off your debt your pay would stay cut by 30%? How many would take this deal? How quickly would that help close the wage gap between the industrialized and emerging middle class?

:ph34r:

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http://uk.biz.yahoo.com/31082007/325/debt-...prime-plan.html

Friday August 31, 08:06 AM
Debt markets tumble ahead of Bush subprime plan
Click to enlarge photo
HONG KONG (Reuters) - U.S. President George W. Bush will propose reforms to help subprime mortgage borrowers, which hit bonds and supported stocks on Friday, as financial markets also awaited a speech by the chairman of the Federal Reserve.

The fact that a HPC has caused the President and the Fed to effectively step in and attempt a bail out underscores the seriousness of the problem. Millions are about to lose their homes. 2 million were said to be at risk in the UK in a recent Money Mail article as resets commence this September. What is the government going to do when those people start walking the streets looking for a place to live and they have no money, no job and hundreds of thousands of pounds of debt?

If Merv and Ben bail the millions of foolish sheeple and their even more foolish bankers out we will have inflation on a grand scale and an even worse depression to follow on. The market has seen that a Greenspan "put" is not the way to go as today's predicament is the direct result of the Fed's (and Gordon's) decision to add liquidity to the market when it was due for a recession (quite apart from the precipitating event--9/11). Gordon is already printing at a gallop with M4 up 13% and he is dangerously close to the edge without more to save the housing market.

"Look at the mess you have got us into this time Ollie" comes to mind. You can also hear a ghostly voice from the grave coming from Uncle Miltie: "See, I told you there ain't no free lunch....."

Edited by Realistbear

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Probably another way to steal stuff and control the sheeple or more likely let the rest of the world pay for America. However, I cant see this working whatsoever, the market wont like this at all. Govt interference in how banks manage their debt, god help us. No doubt it will make things worse.

Also don't you think it will have the effect of, hey I dont need to pay my mortgage the govt will bail me out when i cant pay for 90 days. That threat of foreclosure is there for a reason so people are made to pay their bills and be responsible. Here we go again down that line of people not taking responsibility for their actions.

Edited by sunonmars

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http://news.bbc.co.uk/1/hi/business/6971746.stm

Not sure how this 90+ days in arrears loan is going to work???

Looks like an extension of Freddie Mac and Fannie Mae:

Combined, Fannie and Freddie finance or guarantee about two thirds of all American mortgages. They are seen as more cautious than the lenders catering to borrowers with poor credit that have collapsed this year.

http://business.timesonline.co.uk/tol/busi...icle2358099.ece

:o:o:o

Edited by South Lorne

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President Bush is also expected to discuss ways to prevent such a crisis happening again in the future.

"Not being reckless with lending", then.

Anyway, the only things that the government can do is either extend the terms of the loans (so people will have to postpone their retirement), or print money.

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What really annoys me is that they are advertising this bailout as some sort of charity act, when it's obvious that they're only concerned about the banks.

it makes irresponsible borrowing completely socially acceptable.

Rubbish!

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What really annoys me is that they are advertising this bailout as some sort of charity act, when it's obvious that they're only concerned about the banks.

it makes irresponsible borrowing completely socially acceptable.

Rubbish!

......a lot of it was fraudulent......add crime 'bail out'........ :ph34r::ph34r::ph34r:

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This is reported on Bloomberg as well. Surely not only will this creates huge Moral hazard, but because of the 90 day ruling any one with a high interest rate will go into default to get the better rate, this in turn could stave the Banks of income for 3 moths while everyone is defaulting?

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This is reported on Bloomberg as well. Surely not only will this creates huge Moral hazard, but because of the 90 day ruling any one with a high interest rate will go into default to get the better rate, this in turn could stave the Banks of income for 3 moths while everyone is defaulting?

Yep. The Perfect Storm is coming - they can't say they weren't warned.

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Perhaps this isn't about saving the lenders and the recovery of lost profits. Is it more about maintaining the reserve status of the USD? Is this one shower of cash from those notorious helicopters? Sounds like it to me. What now for the foreign holdings of USD? Are they between a rock and a hard place? Saying that, anyone with USD will be able to buy plenty of US assets at cheap prices. Acacia Avenue is clearly damned, but what about the essentials? Will they sell them?

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$16bn to shore up just 80,000 mortgages? One wonders if Congress is going to vote for this, and if they do, how Bush is going to raise the money. Only members of Congress from areas with large sub-prime populations will be likely to vote for it, surely.

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$16bn to shore up just 80,000 mortgages? One wonders if Congress is going to vote for this, and if they do, how Bush is going to raise the money. Only members of Congress from areas with large sub-prime populations will be likely to vote for it, surely.

They got the patriot act to pass by giving it a pretty name, the American congress are mostly sheep lead mostly by the lobbyists.

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