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December 31, 2007
Bill Would Temporarily Halt Foreclosures
Shades of the Great Depression: Assemblyman Jim Brennan is introducing a bill that would impose a one-year delay in court-ordered foreclosures, according to an article in the Brooklyn Eagle. During the Depression, New York also had a foreclosure moratorium law. Brennan is introducing a separate bill that would allow the State of New York Mortgage Agency to issue $3 billion in bonds to buy out subprime mortgages. “The dramatically rising number of foreclosures has led to declining property values and threatens New York State’s economy. New York City alone faces 15,000 foreclosures with national rates in November 2007 up 68 percent from the same month last year,” said Brennan.
Brennan Bill Would Impose Moratorium on Foreclosures [Brooklyn Eagle]
Photo by mortgage_foreclosure_solutions.
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Comments
No. Adding 3 billion dollars in debt to our overtaxed residents threatens New York State's economy.
Let the market take care of this. It happened in the early 90's, when coop prices collapsed by 50% or more. There were thousands of foreclosures. So what happened? The buyers got a great deal. Over several years, the foreclosures stopped, and prices rose to even higher levels. The same thing will happen today.
KEEP THE GOVERNMENT OUT OF IT!
Posted by: guest at December 31, 2007 9:27 AM
"Foreclosure rates are staggering in some parts of New York City. In Bedford-Stuyvesant, foreclosure rates are 51 percent of subprime mortgages; and in Bushwick, 43 percent."
There goes gentrification for a while...
Posted by: guest at December 31, 2007 9:31 AM
“The root of this crisis, as with past financial and economic crises, results from federal government intervention into the economy, not to anything endemic to the market, nor to the actions of market participants.
“The collapse of the housing market has served as a catalyst for the economy's latest bust. Various federal mortgage programs through the FHA, Fannie Mae, and Freddie Mac have distorted the normal workings of the housing market.
“The Federal Reserve's loose monetary policy and lowering of interest rates were a major spur to the housing boom. Low interest rates influence marginal buyers, those who are sitting on the fence, and encourage them to take on a mortgage that they otherwise would not."
“It is time for the federal government to get out of the housing business.”
-Dr. Ron Paul
Posted by: guest at December 31, 2007 9:36 AM
“The root of this crisis, as with past financial and economic crises, results from federal government intervention into the economy, not to anything endemic to the market, nor to the actions of market participants.
“The collapse of the housing market has served as a catalyst for the economy's latest bust. Various federal mortgage programs through the FHA, Fannie Mae, and Freddie Mac have distorted the normal workings of the housing market.
“The Federal Reserve's loose monetary policy and lowering of interest rates were a major spur to the housing boom. Low interest rates influence marginal buyers, those who are sitting on the fence, and encourage them to take on a mortgage that they otherwise would not."
“It is time for the federal government to get out of the housing business.”
-Dr. Ron Paul
Posted by: guest at December 31, 2007 9:36 AM
No government intervention. Let the market correct itself.
Posted by: guest at December 31, 2007 9:52 AM
This is typical liberal policy seeking to further a socialist agenda. The less government the better, allow the free market to dictate the economic future.
Posted by: guest at December 31, 2007 9:58 AM
Since the "slicing and dicing" involved in transforming mortgages into securities has destroyed the "normal" incentive of lenders to avoid forclosure whenever possible, this bill seems entirely justified to me.
As to 9:58's claim that "this is typical liberal policy seeking to further a socialist agenda"--on the contrary. It is ironic that during the cold war the west successfully presented a relatively humane alternative to Communist totalitarian. Now so-called conservatives seem hell bent on proving Marx right by advocating the most ruthless side of capitalism. I wonder who is actually acting to further a socialist agenda.? "Conservatives" like 10:58 would do well to learn a lession from Disraeli.
Posted by: Bob Marvin at December 31, 2007 10:13 AM
There Will Be Blood.
Posted by: guest at December 31, 2007 10:13 AM
Ron Paul Rocks!
Posted by: guest at December 31, 2007 10:34 AM
Low interest rates put moore people into houses, true. But more people buying houses didn't cause this. Predatory lending that went unchecked by the DOJ was partly to blame. As was the so-called free market turning mortgages into derivatives.
Since this thread has already got political . . .
When it comes to social policy on choice, contraception and the adoption of fundamentalist christianity as the state religion, Ron Paul's certainly calling for more government.
Posted by: Johnny at December 31, 2007 10:36 AM
Ruthless side of capitalism? The borrower's who cashed out on the equity their property's generated was wonderful as they spent that money, capitalism at it's best and most appreciated. Then reality to pay back on that money they happily were spending sets in. Then capitalism is no good and socialism (liberal) is the preferred agenda. Individuals must take responsibility for their actions.
Posted by: guest at December 31, 2007 10:39 AM
i'm as liberal as the day is long but halting foreclosures is not the way for the government to get involved here.
Posted by: guest at December 31, 2007 10:41 AM
Ruthless side of capitalism? Not at all. Those being foreclosed will be walking away from properties that are mortgaged well beyond their actual value. Those who have been renting and have been priced out of the market will be able to buy properties for what they are worth.
Why would you want someone to continue to make payments on a $400,000 mortgage for a property that is worth only $300,000? They are much better off renting.
Posted by: guest at December 31, 2007 10:42 AM
"When it comes to social policy on choice, contraception and the adoption of fundamentalist christianity as the state religion, Ron Paul's certainly calling for more government."
Do you even know anything about Ron Paul?
Fundamentalist Christianity as the State Religion? Where do you get that from?
Posted by: guest at December 31, 2007 10:45 AM
"Fundamentalist Christianity as the State Religion? Where do you get that from?"
I wonder how many of them know he is solidly anti-abortion and he thinks "evolution is a theory" and he "doesn't accept it":
http://www.youtube.com/watch?v=V4af9Q0Fa4Q
I don't think his rabid upper middle class libertarian internet fan base realizes he is just another bible thumping wacko.
Posted by: guest at December 31, 2007 10:57 AM
Preditory lending didn't do this. Aggressive lending along with borrowing greed did this. People that were buying TOO MUCH HOUSE because they thought they could refi with a higher appraisal etc.
Let this market correct itself. You're supposed to buy low and sell high. People that bought AMZN in 1999 were buying high with the hopes of selling higher. So they got caught in the collapse.
If you bought a house that you couldn't afford with a fixed rate, and got an ARM to help you afford it because you thought you'd get a raise, or a new job or a refi, then that was your mistake!!!!
During the great depression, people were without jobs almost instantly. That was a different scenario.
If any help should come, it should be on a case by case basis.
Posted by: guest at December 31, 2007 10:58 AM
Not a single "politician"(read: Suck-up scam artists)from eiother party running for president has any real message, leadership, or appealing platform. They are all pandering to whomever they think may vote for them without actually revealing their actual position on any real issue.
At least Ron Paul is clear and definitive, he is telling you exactly what he will do (or not do, like expand the government, invade foreign countries, raise taxes, etc.)
If he is against abortion-so be it. The President has no real power to determine this anyway, it would take a constitutional ammendment - Which he at least has respect for.
Posted by: guest at December 31, 2007 11:45 AM
I had a few minutes to spare. These are some of my favorites, but please feel free to google "Ron Paul" and "fundamentalist whack-job" or visit christiansforronpaul.com to find more -
"The notion of a rigid separation between church and state has no basis in either the text of the Constitution or the writings of our Founding Fathers."
"The Founding Fathers envisioned a robustly Christian yet religiously tolerant America."
Posted by: Johnny at December 31, 2007 11:45 AM
""The notion of a rigid separation between church and state has no basis in either the text of the Constitution or the writings of our Founding Fathers."
"The Founding Fathers envisioned a robustly Christian yet religiously tolerant America."
So what's so crazy or whack-jobish about that? Its true afterall. The Foundinf Fathers wanted to protect religion from the state not keep religion and religious persons out of gov't.
And no, I am not a Ron Paul supporter.
Posted by: guest at December 31, 2007 12:21 PM
OK, so let's say some foreclosures get halted. If the home owners are not making payments, it still means the mortgage backed securities, and all of the various elaborate debt-backed "assets" piggybacked on them lose value, and the banking system continues to suffer billions more in write-downs. This accomplishes precisely nothing except delaying the inevitable and much-needed price corrections.
PS: Ron Paul is insane. Absolutely bugsh*t crazy.
Posted by: guest at December 31, 2007 12:36 PM
Wow! First FOTD's, then ROTD's and now Brownstoner says the GD phrase? Shit must really be hitting the fan. I'm with 9:27. Nothing will get us through this mess faster and more efficiently than the free market. A futile bailout will exacerbate.
Posted by: guest at December 31, 2007 12:37 PM
"$3 billion in bonds"???
That only saves one brownstone.
Posted by: guest at December 31, 2007 12:40 PM
The bottom line here is that a lot and I mean a lot of people who should of never gotten a mortgage, got one. But the corporate pigs at the banks and brokerages and builders hurried up financed these people and sold these mortgages off to others and they all got screwed in the end. Mortgage brokers are crooks, thier predatory lending practices put the country into this tailspin. There needs to be a lot of people going to jail over this one. People who were bambozzled into these mortgages should have them refinanced and some of these companies involved need to be shut down.
Posted by: guest at December 31, 2007 12:44 PM
Dig this! Nothing will save housing, NOTHING!!!!!!!!!!!!!! Enjoy today take the wife out or go to church. 2008 you will know we have a problem. Remember if someone can't borrow money, they cant put 'new' money into the system. This causes deflation and will bring down prices. I went shopping yesterday and the bargains were out of sight. 30%, 40% and 50% in some places. Find out about how money works and you will understand that nothing will save housing. Happy New Folks.
The What
Someday this war is gonna end.
BTW Here is a primer, please read it!
http://market-ticker.denninger.net/2007/12/year-in-review-and-look-ahead.html
Posted by: guest at December 31, 2007 12:49 PM
The nut is back
Posted by: guest at December 31, 2007 12:51 PM
"During the great depression, people were without jobs almost instantly. That was a different scenario."
Wrong. Same scenario - just earlier stage. There will be massive job losses. Housing = Economy = Recession = Greater Depression. Ben's helicopter will soon run out of fuel.
Posted by: guest at December 31, 2007 12:52 PM
The What is really Ron Paul
Posted by: guest at December 31, 2007 12:55 PM
One, I don't see it as a bailout. I see it as a breather to prevent more of the panic-driven "run on the bank" that we're seeing now. Institutions have just plain left the mortgage market and the lack of liquidity has made the problem even worse. The free market sometimes needs a (visible) hand.
Two, arguing with fundamentalists and their apologists is very, very boring, but becoming more necessary every day. Contrary to what Ron Paul thinks, the earth is not 6,000 years old. Evolution is a reality. And America was not founded as a Christian state. Our boy TJ said it best:
Christianity neither is, nor ever was a part of the common law.
-Thomas Jefferson,
Posted by: Johnny at December 31, 2007 12:57 PM
"Remember if someone can't borrow money, they cant put 'new' money into the system...Find out about how money works and you will understand that nothing will save housing."
Priceless video on the subject.
http://tinyurl.com/27jppm
Posted by: guest at December 31, 2007 1:01 PM
Last time I testified in court I had to take an oath on the bible - Is that not part of the law?
Posted by: guest at December 31, 2007 1:02 PM
Ocular Penetration Act of 2007
http://www.youtube.com/watch?v=3VZF-_-E73o
Happy New Year!!!!!
The What
Someday this war is gonna end..........
Posted by: guest at December 31, 2007 1:18 PM
Double Penetration Act of 2007
http://twoonone.com
The Twat
Someday this orgy is gonna end.....
Posted by: guest at December 31, 2007 2:02 PM
1:02,
Most courts do not use a bible or other religious book and atheists can use an alternate affirmation instead of a religious oath
Posted by: Bob Marvin at December 31, 2007 2:17 PM
2:02 - You are hysterical!
Posted by: guest at December 31, 2007 2:38 PM
I think there someone should introduce a bill putting a halt to all investment losses - stocks, bonds, property, rare coins. Everything. As Marlon Brando said in the Freshman "I only like it when it goes up."
Posted by: Brooklynnative at December 31, 2007 2:58 PM
I want a love child with Ron Paul!
Posted by: guest at December 31, 2007 6:25 PM
Bob Marvin wrote:
"Since the "slicing and dicing" involved in transforming mortgages into securities has destroyed the "normal" incentive of lenders to avoid forclosure whenever possible, this bill seems entirely justified to me."
Nonsense. The "slicing and dicing" has no connection to the homeowner who bought the house and subsequently stopped paying his mortgage. If he can't pay his mortgage, he can't pay it. Therefore, he faces foreclosure.
The critics fail to understand that "securitization" of mortgages has led to a huge increase in credit, which is the factor that has allowed many more people to become homeowners.
The lenders have taken more chances with less reliable borrowers. At the moment, it looks as though lenders were too generous.
Rather than focusing on the failures, look at the vast increase in the number of homeowners. Also take note of the increase in home ownership among blacks and hispanics. Without easier credit, many of them would have remained renters rather than becoming homeowners.
Subprime mortgages have been a net benefit to homeowners.
Posted by: guest at January 1, 2008 2:16 PM
Ron Paul.
Whether you love him or hate him, he's not getting elected.
The US does not elect third-party candidates. However, as Bloomberg might prove and Perot did prove, a third-party candidate can change the outcome of a presidential election -- but he can't win it for himself.
Bill Clinton owes Perot everything. By extension, Hillary is deeply indebted to Perot as well.
However, the US is not ready to elect a female or a black president. The US will never elect Hillary to the presidency. Obama might get a second shot. But his candidacy is about to wind down -- even if he wins Iowa.
Posted by: guest at January 1, 2008 2:22 PM
Nonsense 2:16? What planet are YOU living on?
On my planet there have been numerous newspaper articles about how the once commonplace practice of lenders working with borrowers to avoid forclosure has virtually stopped, in part because, due to securitization of mortgages has left no one with the authority to undertake such negotiations. The other, more sinister part, is that those originating mortgages have already made THEIR profit and foisted the risk, and loss, off to others leading to the recent dangerous disconnect between creditworthyness and ability to receive loans that may hamstring our economy for a long time to come.
Posted by: Bob Marvin at January 1, 2008 2:51 PM
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