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BlogsTom BukacekMain Street Bailout

Posted almost 16 years ago

Main Street Bailout

The following are excerpts from an article on Reuters.com:

"Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth...   The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011...  Morgan Stanley is pushing a mortgage relief plan directly to Congress. On August 3, a top Morgan Stanley economist recommended to the Senate Budget Committee that Fannie and Freddie ease their lending standards to allow millions of Americans to refinance their mortgages."

I understand that this is a blog post, but I am curious to see what the reaction is of people to this news.  Is this a real bailout for homeowners or just a well veiled bailout for the banks? 

Comments (3)

  1. I thought lowering the lending standards was one of the main reasons we are in this mess now.

    Greg B., almost 16 years ago


  2. If a note is worth $500k and is refinanced through FNFM for $300k, the homeowner gets the write off and the bank gets $200k. And the tax payers who aren't in this predicament get stuck with the bill. In my opinion, this is a bailout for the banks more than the homeowners. Readjusting the principal doesn't do anything for the person who can't find a job.

    Tom Bukacek, almost 16 years ago


  3. Hasn't the government done enough tinkering around with our economy. It we would have just been a capitalist country (like we were for so long) we wouldn't have to keep putting these patches in the holes. Ugh!!

    Kevin Kaczmarek, almost 16 years ago