http://market-ticker.denninger.net/
Looks like another "fix" is in the works.
And no it can't work either
This is starting to remind me of the TV show "House". How many procedures can "WE" try before "WE" finally narrow it down to the "Right symptoms" and gain the collective understanding that there is only one way to fix "the patient", who by now by the way, is always on his last leg and laying in his death bed, waiting to pass over.
Obama's fix is just another eppi to the heart, yours mainly, he wants you to know how much he cares by giving you this compassionate gesture, that can't and won't go anywhere.
It will not start the beat of the heart, because the banks don't have one, as well as legs to stand on if "the patient" is actually fixed. The banks are nothing but the value of their paper, and if their paper (your house) is worth less than so is the bank. Now multiply that times millions and you can really see how piss poor the banks really are.
The Obama administration plans to announce programs to help homeowners avoid foreclosure, including subsidies for borrowers who owe more than their home is worth.
This sounds like homeowners will get some "free money" gifted to the banks so as to make them "not underwater" and thus avoid foreclosure. Well, it is - to a point. (If you were one of the people who put down 20% during the boom and was prudent in your use of debt, are you angry yet? You should be!)
The new plan would increase payments to lenders that modify second mortgages, an official said. Banks’ unwillingness to write down second liens has helped block efforts to prevent foreclosures, said Josh Rosner, managing director at Graham, Fisher & Co. The Washington Post reported earlier on the administration’s plan.
Banks aren't unwilling, they're unable. Look, this has been true since this crisis began - the banks - especially the big banks with lots of these loans - are insolvent if they recognize the "value" of this paper.
Absolutely none of the attempts made thus far have had a damn thing to do with helping Americans, and this "new program" is no exception. They have all - each and every one - been aimed at one and only one thing - allowing banks and the GSEs to LIE about the "value" of the home loans they hold.
