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This Year's Ebenezer Scrooge

December 21st, 2008 9:09 PM

THIS YEAR'S EBENEZER SCROOGE

To date nearly half of the $350 Billion of the $700 Billion TARP (Troubled Asset Relief Program) fund, approved by congress and earmarked to "bailout" financial institutions, has been distributed. At week's end about $17B remained uncommitted, that is, until President Bush and Treasury Secretary Paulsen went on a pre-Christmas spending spree
Two things are certain: 1) If there is money in the bank, Washington cannot resist spending it and; 2) The Administration does not want the big three auto manufactures debacle to erupt on their watch - solution: to dish-out just enough to carry the big three through the inauguration and leave it on the desk of the new President and Congress.
On the latter, the Administration has acted over the objections of 26 House and Senate Republicans, who contest that the funds are specified for financial intuitions. Suggestions were made that diverting these funds could be both illegal and unconstitutional.
The Administration is undeterred and has committed to funding the remaining billions with vague conditions thus diverting a massive pre-Holiday layoff, an evitable confrontation with the UAW and a landside of allied business layoffs and closings.
President Bush postured his action as giving time for the auto firms to prepare for an orderly reorganization under chapter 11 bankruptcy rules. What he accomplished is to punt the problem to the Obama and a new congress that will be much more union-friendly.
What does this mean to the rest of us? We won't all be staring at a Bah Humbug holiday. But this does little for the housing industry or the greater economy. Washington's approach may relieve Wall Street and the Main Streets of Michigan; but elsewhere homeowners, mortgage holders and small business owners will continue to feel the sting of recession and tight credit.
This year's Ebenezer Scrooge - The legislation that offers relief to credit card holders, by preventing issuers from jacking up rates on consumers who have made their payments on time, does not take effect until 1010. In the meantime, many consumers will have their new debt service ratios excluding them from homebuying, refinancing and other purchases. The credit card companies are adding fuel to the credit crisis fire and Washington is their accomplice. Perhaps we have more than one Scrooge this season.

Posted by Joyce Riviere on December 21st, 2008 9:09 PMPost a Comment (0)

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LET THEM REFINANCE !!

December 1st, 2008 8:21 PM

Fannie, Freddie halt foreclosures for holidays

" Fannie Mae and Freddie Mac recently announced they will postpone foreclosure sales and evictions on occupied single-family residences that were scheduled to occur between Nov. 26, 2008 and Jan. 9, 2009. During this time, the companies will streamline their mortgage modification programs, scheduled to launch Dec. 15. Foreclosure attorneys and loan servicers will continue to contact borrowers who have defaulted on their mortgage loans owned or guaranteed by Fannie Mae or Freddie Mac, and continue to pursue workout plans. Whoo-Ahhhh! "

Ok, here's my take....let anyone, anyone at all, refinance their mortgage loan, any loan they have, into a fixed 30 yr loan at today's great rates! NO QUESTIONS ASKED! IRREGARDLESS of CREDIT, INCOME, or VALUE! ....AND NO PREPAYMENT PENALTIES!!

Posted by Joyce Riviere on December 1st, 2008 8:21 PMPost a Comment (0)

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