Comments on: Ross Complains But Doesn’t Convince in NY Post Op-Ed on Homeowner Affordability and Stability Plan http://blownmortgage.com/2009/02/19/ross-complains-but-doesnt-convince-in-ny-post-op-ed-on-homeowner-affordability-and-stability-plan/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 07 Nov 2009 02:53:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: morganb http://blownmortgage.com/2009/02/19/ross-complains-but-doesnt-convince-in-ny-post-op-ed-on-homeowner-affordability-and-stability-plan/comment-page-1/#comment-71706 morganb Thu, 19 Feb 2009 22:06:16 +0000 http://blownmortgage.com/?p=2463#comment-71706 Sorry, Fielding I meant that if we're going to get in and financial engineer<br>something it has to address more than just what Mr. Ross mentioned. I agree<br>that the best solution is the natural course of markets to allow<br>foreclosures to happen, etc. But since the inevitable is that we won't see<br>that happen a simple cut and dry 50/50 split of the current negative equity<br>is not a realistic solution.<br><br>Thanks for calling me on it though!<br><br><br>--<br>P. Morgan Brown<br><a href="http://www.twitter.com/morganb" rel="nofollow">http://www.twitter.com/morganb</a><br><a href="http://www.linkedin.com/in/morganb" rel="nofollow">http://www.linkedin.com/in/morganb</a> Sorry, Fielding I meant that if we're going to get in and financial engineer
something it has to address more than just what Mr. Ross mentioned. I agree
that the best solution is the natural course of markets to allow
foreclosures to happen, etc. But since the inevitable is that we won't see
that happen a simple cut and dry 50/50 split of the current negative equity
is not a realistic solution.

Thanks for calling me on it though!

–
P. Morgan Brown
http://www.twitter.com/morganb
http://www.linkedin.com/in/morganb

]]> By: Fielding Mellish http://blownmortgage.com/2009/02/19/ross-complains-but-doesnt-convince-in-ny-post-op-ed-on-homeowner-affordability-and-stability-plan/comment-page-1/#comment-71705 Fielding Mellish Thu, 19 Feb 2009 21:49:32 +0000 http://blownmortgage.com/?p=2463#comment-71705 Sorry, Morgan, to have to disagree with your assertion that, "The mortgage mess is a complex one, it needs a complex solution". I think it already has a very simple solution: Whoever doesn't pay their mortgage according to the contract they signed gets foreclosed. They can move in with their sister for five years, by which time they should have had ample time to save some money and become halfway creditworthy. Banks that are made insolvent by their non-performing assets (which is to say most of the big ones) should be taken over by the government, with the stockholders wiped out, the management fired and the creditors' interests marked down to current market value. Unfortunately, our former "genius" Secretary of the Treasury, Paulson, and his co-conspirator Bernanke have already, in their infinite wisdom, backstopped not only a big chunk of Citi's obligations to its creditors but also Fannie's & Freddie's debts to their creditors. Where we once had a perfect opportunity to force foreign creditors to take their share of mortgage losses on their investments in the US mortgage market (a'la Iceland), Bernanke & Paulson put the US taxpayer on the hook in order to indemnify Chinese & Arabian investors (not to mention PIMCO and many American investors). Even though that bonehead move by Hank & Ben cost us hundreds of billions, we should still reverse course and stop giving away money to the banks. Rescind the TARP & nationalize the big banks. Never forget that another name for "falling home values" is "increasingly affordable home prices for would-be buyers". And never forget that if Bill Gross advises we "zig", we damn well better "zag". Sorry, Morgan, to have to disagree with your assertion that, “The mortgage mess is a complex one, it needs a complex solution”. I think it already has a very simple solution: Whoever doesn't pay their mortgage according to the contract they signed gets foreclosed. They can move in with their sister for five years, by which time they should have had ample time to save some money and become halfway creditworthy. Banks that are made insolvent by their non-performing assets (which is to say most of the big ones) should be taken over by the government, with the stockholders wiped out, the management fired and the creditors' interests marked down to current market value. Unfortunately, our former “genius” Secretary of the Treasury, Paulson, and his co-conspirator Bernanke have already, in their infinite wisdom, backstopped not only a big chunk of Citi's obligations to its creditors but also Fannie's & Freddie's debts to their creditors. Where we once had a perfect opportunity to force foreign creditors to take their share of mortgage losses on their investments in the US mortgage market (a'la Iceland), Bernanke & Paulson put the US taxpayer on the hook in order to indemnify Chinese & Arabian investors (not to mention PIMCO and many American investors). Even though that bonehead move by Hank & Ben cost us hundreds of billions, we should still reverse course and stop giving away money to the banks. Rescind the TARP & nationalize the big banks. Never forget that another name for “falling home values” is “increasingly affordable home prices for would-be buyers”. And never forget that if Bill Gross advises we “zig”, we damn well better “zag”.

]]> By: morganb http://blownmortgage.com/2009/02/19/ross-complains-but-doesnt-convince-in-ny-post-op-ed-on-homeowner-affordability-and-stability-plan/comment-page-1/#comment-28614 morganb Thu, 19 Feb 2009 21:06:16 +0000 http://blownmortgage.com/?p=2463#comment-28614 Sorry, Fielding I meant that if we're going to get in and financial engineer<br>something it has to address more than just what Mr. Ross mentioned. I agree<br>that the best solution is the natural course of markets to allow<br>foreclosures to happen, etc. But since the inevitable is that we won't see<br>that happen a simple cut and dry 50/50 split of the current negative equity<br>is not a realistic solution.<br><br>Thanks for calling me on it though!<br><br><br>--<br>P. Morgan Brown<br><a href="http://www.twitter.com/morganb" rel="nofollow">http://www.twitter.com/morganb</a><br><a href="http://www.linkedin.com/in/morganb" rel="nofollow">http://www.linkedin.com/in/morganb</a> Sorry, Fielding I meant that if we're going to get in and financial engineer
something it has to address more than just what Mr. Ross mentioned. I agree
that the best solution is the natural course of markets to allow
foreclosures to happen, etc. But since the inevitable is that we won't see
that happen a simple cut and dry 50/50 split of the current negative equity
is not a realistic solution.

Thanks for calling me on it though!

–
P. Morgan Brown
http://www.twitter.com/morganb
http://www.linkedin.com/in/morganb

]]> By: Fielding Mellish http://blownmortgage.com/2009/02/19/ross-complains-but-doesnt-convince-in-ny-post-op-ed-on-homeowner-affordability-and-stability-plan/comment-page-1/#comment-20283 Fielding Mellish Thu, 19 Feb 2009 20:49:32 +0000 http://blownmortgage.com/?p=2463#comment-20283 Sorry, Morgan, to have to disagree with your assertion that, "The mortgage mess is a complex one, it needs a complex solution". I think it already has a very simple solution: Whoever doesn't pay their mortgage according to the contract they signed gets foreclosed. They can move in with their sister for five years, by which time they should have had ample time to save some money and become halfway creditworthy. Banks that are made insolvent by their non-performing assets (which is to say most of the big ones) should be taken over by the government, with the stockholders wiped out, the management fired and the creditors' interests marked down to current market value. Unfortunately, our former "genius" Secretary of the Treasury, Paulson, and his co-conspirator Bernanke have already, in their infinite wisdom, backstopped not only a big chunk of Citi's obligations to its creditors but also Fannie's & Freddie's debts to their creditors. Where we once had a perfect opportunity to force foreign creditors to take their share of mortgage losses on their investments in the US mortgage market (a'la Iceland), Bernanke & Paulson put the US taxpayer on the hook in order to indemnify Chinese & Arabian investors (not to mention PIMCO and many American investors). Even though that bonehead move by Hank & Ben cost us hundreds of billions, we should still reverse course and stop giving away money to the banks. Rescind the TARP & nationalize the big banks. Never forget that another name for "falling home values" is "increasingly affordable home prices for would-be buyers". And never forget that if Bill Gross advises we "zig", we damn well better "zag". Sorry, Morgan, to have to disagree with your assertion that, “The mortgage mess is a complex one, it needs a complex solution”. I think it already has a very simple solution: Whoever doesn't pay their mortgage according to the contract they signed gets foreclosed. They can move in with their sister for five years, by which time they should have had ample time to save some money and become halfway creditworthy. Banks that are made insolvent by their non-performing assets (which is to say most of the big ones) should be taken over by the government, with the stockholders wiped out, the management fired and the creditors' interests marked down to current market value. Unfortunately, our former “genius” Secretary of the Treasury, Paulson, and his co-conspirator Bernanke have already, in their infinite wisdom, backstopped not only a big chunk of Citi's obligations to its creditors but also Fannie's & Freddie's debts to their creditors. Where we once had a perfect opportunity to force foreign creditors to take their share of mortgage losses on their investments in the US mortgage market (a'la Iceland), Bernanke & Paulson put the US taxpayer on the hook in order to indemnify Chinese & Arabian investors (not to mention PIMCO and many American investors). Even though that bonehead move by Hank & Ben cost us hundreds of billions, we should still reverse course and stop giving away money to the banks. Rescind the TARP & nationalize the big banks. Never forget that another name for “falling home values” is “increasingly affordable home prices for would-be buyers”. And never forget that if Bill Gross advises we “zig”, we damn well better “zag”.

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