brucefan
EOG Dedicated
Folks, we have a revenue problem:shoot:
Obama Administration To Extend Mortgage-Free Living For America's Unemployed To One Year<sup></sup>
Submitted by Tyler Durden on 07/07/2011 10:31 -0400
Last week it was discovered that the means by which various big banks are dealing with the Option ARM cliff is by enforcing outright mortgage debt forgiveness, in some cases as large as 50% of the total principal. Which is why it should come as no surprise that the administration, in dealing with the lack of an unemployment cliff, has decided to extend foreclosure-free living for unemployed homeowners from a few months to a year. From USA Today: "The administration today will announce that two programs providing unemployed homeowners a few months' forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible. The action is being taken as part of the administration's effort to help prevent foreclosures while unemployment remains above 9% and the economy struggles to rebound." What would be great if in addition to such openly socialist policies the administration would enforce the implementation of sinking funds for said unemployed workers, who instead of taking unemployment benefits from the government and converting it into less than edible iPads, would actually set aside money for that eventual mortgage payment. Of course that will never happen: after all why redirect freshly issued fiat from being recycled into the economy and do the responsible thing when nobody in America expects to pay their mortgage payments ever again. And some wonder why retail sales in June came as blistering as they did. Simple: when the US consumer no longer has to spend any money on the biggest traditional use of capital, housing, the alternative is everything else. And for those attempting to figure out just how this is deflationary (for everything but housing of course, but that's one deflation that will only hit the pocket of Uncle Sam), we would kindly request an explanation as well when someone has an answer.
Obama Administration To Extend Mortgage-Free Living For America's Unemployed To One Year<sup></sup>
Submitted by Tyler Durden on 07/07/2011 10:31 -0400
Last week it was discovered that the means by which various big banks are dealing with the Option ARM cliff is by enforcing outright mortgage debt forgiveness, in some cases as large as 50% of the total principal. Which is why it should come as no surprise that the administration, in dealing with the lack of an unemployment cliff, has decided to extend foreclosure-free living for unemployed homeowners from a few months to a year. From USA Today: "The administration today will announce that two programs providing unemployed homeowners a few months' forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible. The action is being taken as part of the administration's effort to help prevent foreclosures while unemployment remains above 9% and the economy struggles to rebound." What would be great if in addition to such openly socialist policies the administration would enforce the implementation of sinking funds for said unemployed workers, who instead of taking unemployment benefits from the government and converting it into less than edible iPads, would actually set aside money for that eventual mortgage payment. Of course that will never happen: after all why redirect freshly issued fiat from being recycled into the economy and do the responsible thing when nobody in America expects to pay their mortgage payments ever again. And some wonder why retail sales in June came as blistering as they did. Simple: when the US consumer no longer has to spend any money on the biggest traditional use of capital, housing, the alternative is everything else. And for those attempting to figure out just how this is deflationary (for everything but housing of course, but that's one deflation that will only hit the pocket of Uncle Sam), we would kindly request an explanation as well when someone has an answer.