Senate Leaders Agree on Housing Relief

[thecrow]

Source: http://apnews.excite.com/article/20080402/D8VQ16F03.html

WASHINGTON (AP) - Momentum built Wednesday for a bipartisan Senate bill designed to ease the slumping housing market and help millions of families threatened by foreclosure, though economists are skeptical that it will help much.

The scaled-back proposal released by Majority Leader Harry Reid, D-Nev., and GOP leader Mitch McConnell of Kentucky contains an amalgam of ideas aimed at boosting demand for housing and helping homeowners saddled with subprime mortgages avoid foreclosure.

The plan contains $4 billion in grants to local governments to buy and refurbish foreclosed homes, new authority for states to issue bonds to be used to refinance subprime mortgages and a $7,000 tax credit for people buying new homes or properties in foreclosure.

snip


The measure also contains a provision dropped from February's stimulus measure that would permit homebuilders and other money-losing businesses to reclaim previously paid taxes, new disclosure requirements aimed at preventing unsophisticated borrowers from being duped by mortgage brokers, and additional money to provide counseling to people threatened with foreclosure and help them in negotiating with their lenders.


Read more: http://apnews.excite.com/article/20080402/D8VQ16F03.html

---

More at link!

[thecrow]

1. Another line from the article was most telling...

"Basically, you're giving money to builders that overbuilt and banks that issued bad loans," said Dean Baker, co-director of the Center for Economic and Policy Research. "It's giving money to the villains in this story."

[ananda]

2. The real news about this so-called relief is..

.. that it doesn't do much, way not
nearly enough in fact to make much
of a difference.

Typical.

[4dsc]

3. So ole fucking BAILOUT!!!

I'm getting real tired of folks getting bailed out in this housing mess..

[jaybeat]

4. Uh, how is this going to help?

"The plan contains $4 billion in grants to local governments to buy and refurbish foreclosed homes..."

Instead of preventing foreclosure, that reduces the impact on everyone *not* foreclosed. Nice. Makes it a lot easier to say, "Oh, well, tough luck for THAT guy."

"..new authority for states to issue bonds to be used to refinance subprime mortgages"

That might help, but by the time the state legislatures, governors, bureaucracies and lobbyists get through with it, how many people will have already gone under?

"...and a $7,000 tax credit for people buying new homes or properties in foreclosure."

Oh, that's GREAT. Just GREAT! REWARD the slimebag speculators who hover around foreclosure properties like vultures. ENCOURAGE the predatory scam artists who try to convince people to sell THEM their home at PENNIES on the dollar on the false hope of saving their credit, which has already been trashed anyway. PAY people to take advantage of others, as if the raw GREED and moral vacuum of their SOULS (assuming they have them, which I doubt) isn't ENOUGH motivation.

Hasn't at least one of our esteemed Democratic candidates for POTUS proposed things like a 6 month moratorium on foreclosures of owner-occupied properties, a freeze on adjustable rate loans from "adjusting," Fannie-Mae and Freddie-Mac-backed refinances to convert sub-prime adjustables to fixed?

Any chance our supposedly DEMOCRATIC-led Congress might actually DO any of these things that might remotely HELP???


:banghead: :banghead: :banghead: :banghead: :banghead: :banghead: :banghead:

[whathappened]

5. just what i was thinking

when you replyed to this , thanks for saying it , the poor who have been thrown out already will not benefit from this , just the greedy 1's with money to burn will will reap the harvest

[GOP_refugee]

6. Housing bailout

This is my first post here, so go easy. Also note from my login that I am a former supporter of this President. I am telling you this in the interest of full disclosure. You can rag on me all you want, but I need your help. I will gladly take your help anyway I can get it, frankly.

Like Saul on the road to Damascus, my eyes have been opened by the blatant corruption of not just this Administration but Senators Dodd, Schumer, and pretty much every Republican in the Senate.

I've frankly had enough. These clowns are going to reward the same idiots that got us into this mess, namely the investment banks, homebuilders, and greedy mortgage lenders like Countrywide.

Today's Senate hearing was a joke. Not one question about the illegal (as in violation of the US constitution) transfer of risk from Bear Stearns/JP Morgan to U.S. taxpayers. Folks, nowhere does the US constitution give the Executive Branch the right to do what just happened. They claimed authority under the Federal Reserve act, but this too is a lie. The supposed "loan" to Bear Stearns was NOT a loan. By definition, it is non-recourse in that JPMorgan is not on the hook for anything. That's a bribe, plain and simple. Essentially the power to levy taxes on the American people was just given to private, financial institutions. This is a precedent, folks, you'd better wake up. Your kids future just got sold out to JPMorgan, Citibank, and whatever other corrupt corporations are deemed "too big to fail."

I've just finished faxing a 14 page letter to House Judiciary Chairman John Conyers outlining the basis for Articles of Impeachment to be brought against not just Bush, but Treasury Secretary Paulson as well. This is where I need your help. To all those who called for the impeachment of Bush, I see now that you were right. This administration is psychotic in it's trashing of the US constitution. They need to be brought to justice. PLEASE contact your representatives in the US House, I believe they are our only hope. The Senate is a lost cause, though it wouldn't hurt to let them hear your outrage as well.

Especially if you live in Michigan ... contact Rep. Conyers. I believe he is an honorable man who just might have the courage to do what is necessary here. Ask him to immediately convene an emergency meeting of the House Judiciary committee.

And one last thing, please unite soon behind Obama. As someone from "the other side" I can see how happy the disgusting pigs like Paulson are to see you guys divided and preoccupied with a brutal nomination fight. It is taking away attention from the whole scale pillaging of the US Treasury right before our very eyes.

[Robbien]

7. Welcome to DU GOPRefugee

A mighty fine first post.

Yes, you are right. This bill is a huge farce. That tax credit they put back into this bill will give BILLIONS to the exact same people who benefited the most from the whole financial system mess.

My representative has been emailed with my request for her to vote AGAINST this huge homebuilder giveaway.

Nice to see you here at DU.
:hi:

We are happy to give you refuge.

[aquart]

9. Not psychotic. Fascist. Which is a form of parasitism, not psychosis.

And I can understand your problem with the Democratic nomination process as the Republicans have never been comfortable with the cumbersome slowness of democracy and that nasty "consent of the governed." Tyranny is so much swifter and has less paperwork.

Oh, and WE TOLD YOU SO. Next time, dammit! Listen.

[KingOfLostSouls]

10. great post

welcome to DU

glad to have you aboard.

[aquart]

8. So it fails to keep people in their homes?

But rewards speculators? Aren't we clever.

[girl gone mad]

11. Builders Get Breaks From Congress

Source: AP/Yahoo

Builders Get Breaks From Congress
Thursday April 3, 2:13 am ET
By Alan Zibel, AP Business Writer
Builders, Mortgage Companies Get Additions, Subtractions They Asked for in Senate Housing Deal

WASHINGTON (AP) -- Homebuilders and the mortgage industry are emerging as big victors in a bipartisan agreement reached by Senate leaders on legislation designed to limit the housing crisis.

The $15 billion measure, announced Wednesday by Majority Leader Harry Reid, D-Nev., and GOP leader Mitch McConnell of Kentucky, contains a $6 billion emergency tax break that would let companies use losses from 2008 and 2009 to offset profits earned over the previous four years, instead of the usual two-year timeframe. That's good news for big homebuilders such as KB Home and Pulte Homes Inc., which have been saddled with massive losses over the past year.

(snip)

Homeowners facing bankruptcy, however, won't find relief in the proposal. The mortgage industry fought fiercely to spike a provision to let bankruptcy judges rewrite the terms of distressed mortgages. It won that battle; the provision was left out.

(snip)

Earlier this year, the builders' trade group was so dissatisfied by lawmakers' actions -- notably not including the tax provision in the economic stimulus bill-- that it snapped shut its political purse. NAHB said it would stop making contributions to congressional candidates "until further notice."

Since 1990, the trade group has given nearly $20 million to federal candidates, with 35 percent going to Democrats and 65 percent to Republicans, according to the Center for Responsive Politics.

(snip)

Other big beneficiaries would be Wall Street banks such as Citigroup Inc., Merrill Lynch & Co. and Morgan Stanley. In fact, any company now struggling after years of healthy profits that pumped up their tax bills could benefit.

Read more: http://biz.yahoo.com/ap/080403/homebuilders_congress.html

---

This is more outrageous corporate welfare. We are living in some sick, twisted times. Harry Reid needs to be thrown out with the rest of them.

[TomInTib]

12. And Bobby Jack Perry laughs all the way to the bank.

That's what the Boy gets for all of those donated dollars.

Fuck H. Reid...

He should be dragged out and lined up at dawn with all the rest of them.

[WCGreen]

13. If they limited the loss right offs to 3000 a year like they do for most of

the rest of us mortals, then I would say have at it...

You do realize this is all trickle down economics at it's best...

Instead of limiting the loss to the company, they spread it out so all of us can reap the benefits of business ethics...

Ah, I'm so glad we had an MBA president for the last few years...

all that bidness training did a world of good...

The bad part about all of this is this generation of bidness leaders are use to getting everything they want from the DC crowd...

They couldn't survive if they weren't sucking on that handout teat ...

[asteroid2003QQ47]

14. The system works! n/t

[GOP_refugee]

15. Builder tax breaks

Don't take this lying down. There are more people angry about this than you may think, so call your congressman and demand that they strip this out.

Also anyone in Michigan, please call John Conyers office (202-225-5126) and ask that he initiate impeachment proceedings quickly against President Bush and Treasury Secretary Paulson over the unconstitutional transfer of funds from the treasury to Bear Stearns/JP Morgan.

I'm tired of these corrupt punks.

[BadgerKid]

16. Homeowners told to take a hike.

Saw that coming from a mile away. Big Finance wins again.

[RC]

17. Everybody but the victims seem to be making out like bandits.

There should be people in prison over this. Why are they being rewarded instead?

[natrat]

18. they could at least require builders to use low energy, sustainable materials-benefits for the few

[Doctor Cynic]

19. Homebuilders Win Big in Senate Bill

Source: ABC

Senate Democrats and Republicans have agreed on a plan to resurrect a dismal housing market. But, before a vote can even be taken, many are questioning if it will work and if the plan unfairly helps some of the big companies whom they blame for the housing mess.

One of the biggest provisions — costing taxpayers an estimated $6 billion — would allow builders and others in the housing business to count their losses this year and in 2009 against the big profits they made as far back as 2004.

Read more: http://abcnews.go.com/Business/Economy/story?id=4583317&page=1

---

Oh, yes. Yet more profit at public expense.

I have an idea: if the banks are at risk of failing, then the government could bail them out, but only in exchange for a large share in the bank at below-market prices. The government would act exactly like any private investor, and the purpose is to ensure that taxpayers benefit next time they post multi billion dollar profits. The shares could be sold once the bank is fully recovered.

This approach was used by the Hong Kong government in 1998 during the Asian financial crisis, when they bought huge stakes in failing companies and profited when the markets rebound. In 2003 Air New Zealand was bankrupt, and the New Zealand Government nationalized it by bailing them in exchange for an 80% share. Now it's a successful and profitable airline. Clearly this cannot be called imposing communism given that other countries have done so successfully.

[Duke Newcombe]

20. ...and Homeowners thrown under the bus...again

<sheesh>

Duke

[boilinmad]

21. And so,....

...GREED prevails again.