Parsing the Cacophony on Financial Crisis

Home mortgage battle between two speaking on Newshour:

Agree on helping individual mortgage holders: one claims FannieMae announcement of support is one key http://www.pbs.org/newshour/rss/redir/http://www-tc.pbs.org/newshour/rss/media/2008/11/11/20081111_housing.mp3

other says program rewards for being 90 days in debt before offering any help– which really is backwards reward. The program restructures payment to 38% of one’s income, which is still huge. Makes one wonder how anyone in their right mind would take a mortgage requiring them to pay so much more of their income prior to the restructuring!

The next segments pits two economists on issue of whether the bailout is working. Steiglitz makes the point that annoys me so much which is that the lenders of the debt to the AIGs and others are not taking on a portion of the losses that shareholders are shouldering and I fear, the taxpayers will have to bear.  Each agrees that bankruptcies for certain companies would be acceptable yet with great irony it is the economist who worked for Republican administrations that warns about the freezing up of the credit markets if the bankruptcy occurred.

However, bankruptcy might actually balance the load of the losses toward the responsible company and it’s foolish management!

http://www.pbs.org/newshour/rss/redir/http://www-tc.pbs.org/newshour/rss/media/2008/11/11/20081111_falling.mp3

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1 comment so far

  1. […] Daily Buzz Blog – Where the Buzz about anything and everything is Daily! wrote an interesting post today onHere’s a quick excerpt Home mortgage battle between two speaking on Newshour: Agree on helping individual mortgage holders: one claims FannieMae announcement of support is one key http://www.pbs.org/newshour/rss/redir/http://www-tc.pbs.org/newshour/rss/media/2008/11/11/20081111_housing.mp3 other says program rewards for being 90 days in debt before offering any help– which really is backwards reward. The program restructures payment to 38% of one’s income, which is still huge. Makes one wonder how anyone in their right mind would take a mortgage requiring them to pay so much more of their income prior to the restructuring! The next segments pits two economists on issue of whether the bailout is working. Steiglitz makes the point that annoys me so much which is that the lenders of the debt to the AIGs and others are not taking on a portion of the losses that shareholders are shouldering and I fear, the taxpayers will have to bear.  Each agrees that bankruptcies for certain companies would be acceptable yet with […] […]


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