Tuesday, March 4, 2008

Forgive us lord, for we have sinned

Bernanke Urges Banks to Forgive Portion of Mortgages

Federal Reserve Chairman Ben S. Bernanke, battling the worst housing recession in a quarter century, urged lenders to forgive portions of mortgages held by homeowners at risk of defaulting. ``Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,'' Bernanke said in a speech to bankers in Orlando, Florida, today. ``Reductions of principal that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.''

Posted by little professor @ 06:07 PM (754 views)
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8 thoughts on “Forgive us lord, for we have sinned

  • Sorry, what? He MUST be short of stocks!

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  • At this rate, even those who are solvent will be praying they get into trouble!

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  • A social move from the Archdukes of Capitalism. This is a Desperate Manoeuvre to avoid a Meltdown. How things change !

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  • it_is_going_with_a_bang says:

    It just won’t work on a large scale. Lenders lent the money to make money not as a gift.
    Forgive debt? It’s third world country talk now.

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  • Surely this is a call for everyone to stop paying their mortgages, or to try and swindle another loan?
    Isn’t this equating money with nothing?
    Can’t pay, don’t worry is the message from the head of the federal reserve!
    Hello hyperinflation, inflation tax the whole country to insolvency for bad bank practices.

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  • Bernanke’s very soon going to run low on monetary policy ammunition (in fact he’s already fuelling the economy with negative real interest rates). The markets brushed off the fiscal policy stimulus drafted by the increasingly desperate Bush administration. Now it’s apparently time for the private sector to act. I don’t think this is desperate 🙂

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  • Actually this is a bluff.
    The banks have sold these mortgages over to others so they can’t forgive them anyway.

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  • Good point deepak, we forgot. There was a time when securitisation was possible. The good old days.

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