I also agree. Govt should not have a role in picking winners and losers on wall street. They are deliberately deciding which sectors and/or companies or equity holders should be ok to lose their investments. Every time they leak a rumor, someone's stock is affected (seems to be mostly negatively). Note that Mr. Ben indicated that the reduced rate was to those "current" on their mortgages but under water on the value of their home. And in another breath Mr. O indicated their "idea" was to get mortgage financing back into the hands of private capital. Fannie and freddie are not owned by the government and they say they would lose too much money doing this and in turn the taxpayers would take another hit because it would cause them more debt. What about all the people who can't pay cuz they don't have or cant get jobs? Are we to assume they were all derelicts who should not have had a chance to own a home? Are only the well off supposed to have the opportunity to own a home? Where do these people come up with such crazy ideas. They need to get more sleep and quit dreaming.
We bought a great foreclosed home in very nice older well established area fo 30K and put $20K into it. Our grandson and his wife moved into it, pay the expenses and when it is sold we will all have some profit. Would have bought probably a couple more if the mortgagors weren't being so stupid as to what they wanted for the homes. In our area anyway there is almost no inventory of foreclosures left but the govt has to realize that a lot of them are not livable let alone rentable. Who is going to pay to fix them up to that point? They would do far better I think if they would just lower the prices. All kinds of speculators and investors would buy, fix up and rent. Again, the govt thinks they can do a better job than private enterprise just so they can show they have less housing inventory. Are they gonna set up a new housing dept to collect rents? Another problem is that the cities will not lower the taxes on these houses drastically to reflect the actual amount paid. Why would they. The banks and/or Freddie and Fannie are paying those high taxes, and individuals don't want to pay such high taxes on homes they must totally renovate before they can get any return. Thanks for listening to my two cents.