23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

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John
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23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

Post by John »

23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

William Black: Despite massive fraud by bankers, no one is being charged

** 23-Oct-10 News -- Foreclosure crisis will cost $10 trillion
** http://www.generationaldynamics.com/cgi ... 23#e101023




Contents:
Prof. William K Black dereliction of duty by FBI

vincecate
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Re: 23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

Post by vincecate »

Looks to me like the government (including the Fed) is going to end up paying for this $10 trillion. I see 4 options:
1) Fraud results in bogus mortgages being put back to banks which go bust and government is insuring bank depositors, so Gov takes the bullet.
2) Pension funds have toxic debt so they go bust. Government steps in to take care of people who no longer have a retirement fund, so Gov takes the bullet.
3) Fed/gov buy up the toxic debt. Gov takes the hit.
4) The government is found at fault because they were guaranteeing the banks but not watching them. Everyone knew they were "liars loans" and regulators did nothing. So they created the "moral hazard". Gov takes the bullet.

Are there other options? How will the government handle $10 trillion hit? It will print $10 trillion, right? Is there any other way things can go?

John
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Re: 23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

Post by John »

Dear Vince,

The other option -- and the option that I believe is the only one
that's possible -- is that most of the $10 trillion will simply
disappear as the deflationary spiral continues.

John

vincecate
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Re: 23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

Post by vincecate »

Gonzalo lira has another option. He says banks are getting people to sign a new mortgage by offering lower monthly payments. He is calling these "Mulligan Mortgages". Sort of a friendly "do over". This might just work in most cases.

http://gonzalolira.blogspot.com/2010/10 ... .html#more

Higgie

Re: 23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

Post by Higgie »

"People have forgotten the lessons of the 30's" --Chris Whalen

http://www.kingworldnews.com/kingworldn ... halen.html

guest

Re: 23-Oct-10 News -- Foreclosure crisis will cost $10 trillion

Post by guest »

John wrote:Dear Vince,

The other option -- and the option that I believe is the only one
that's possible -- is that most of the $10 trillion will simply
disappear as the deflationary spiral continues.

John
Along with this option is the real possibility that millions of unoccupied houses and buildings will get bulldozed as they become eyesores and
hazardous deteriorating wrecks. There is certainly no shortage of housing. Property values are dropping almost everywhere.
In my area housing starts are basically zero and sales are 50-75% below the peak, property values have dropped a minimum of 25% across the board.
No one is buying houses or other properties unless they can get them at rock bottom prices. I agree with John in the sense these $trillions will evaporate just like the "stimulus" money they pumped into the economy. of course the bankers will still reap preposterous rewards once more.
But on November 3, all will be solved, just like "hope and Change" and "The recession is over."
My only hope for change is that all incumbents get handed pink slips and completely unskilled non party affiliated people get voted into office as write-ins.
Never gonna happen. The Sheeple just keep voting for the same dyed in the wool crooks year after year.

at99sy

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