Reply #336: Yes! Good ole disaster capitalism once again. [View All]

[dixiegrrrrl]

I have read all the arguments here about how good it is for people, they can now rent.
But the truth is, people who can afford to rent are already doing so, there is a glut of rental houses available.
People who can afford to buy are doing so.
People who can afford to stay in their houses and pay the mortgages are doing so.
And there STILL are millions of now vacant homes, many of them were foreclosed on ILLEGALLY as the hundreds of lawsuits have proven.

Also, as people here have commented, and noticed, even when someone wants to buy a foreclosed property, they cannot do so.
Why?
Because the auctions are set up so that a buyer from the bank gets the home at a reduced price.
Why?
because the house can be valued on the bank's books at full mortgage owed value,
thus banks do not show "losses" from repos, or from foreclosures.
That also explains the stories of how some people have stayed in their homes for years before foreclosure.

Bank "profits" are fantasy paper.

Just as the Treasury moved electronic "money" around to banks, now they want banks and hedge funds to move "money" around in order to "buy back" the mortgages from Fannie and Freddie that Fannie and Freddie BOUGHT FROM THE BANKS in the first place.
Wayyy back when, there were concerns that Fannie and Freddie would be 'stuck" with worthless mortgages when they "rescued " the TBTF banks by buying the paper.
Turns out, sure enough, the mortgages were worth a lot less than had been stated.
So now the game is to move the black hole of debt from FAnnie and Freddie back to the banks.

Let's see who blinks.