{"id":189451,"date":"2010-03-26T18:51:00","date_gmt":"2010-03-26T23:51:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/03\/26\/another-whack-at-the-foreclosure-epidemic\/"},"modified":"2010-03-26T18:51:00","modified_gmt":"2010-03-26T23:51:00","slug":"another-whack-at-the-foreclosure-epidemic","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/03\/26\/another-whack-at-the-foreclosure-epidemic\/","title":{"rendered":"Another Whack at the Foreclosure Epidemic"},"content":{"rendered":"<p>And once again, it&#8217;s a <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aBnkFkb93CR4&amp;pos=8\">swing and a miss<\/a>, because once again, it&#8217;s an attempt to use the carrot on banks, a rather generous payout for principal reductions, along with giving banks an incentive to shovel their most toxic mortgages to the FHA, as opposed to a stick, in the hope that house prices somehow recover.<\/p>\n<p>They won&#8217;t <span style=\"font-weight: bold;\">ever<\/span> that is what &#8220;post bubble&#8221; means.<\/p>\n<p>But once again, Larry Summers<sup>*<\/sup> and His Evil Minions<sup>\u2122<\/sup>bailing out the banks, not the homeowners.  The goal is to keep the toxic nature of the mortgages off of the banks&#8217; books.<\/p>\n<p>Little things, like banning prepayment penalties, which lock people into bad mortgages, and allowing mortgages to be modified in bankruptcy (cram down), would give lenders the incentive to deal fairly.<\/p>\n<p>But that&#8217;s not gonna happen.<\/p>\n<p><sup>*<\/sup><span style=\"font-size: 78%;\">But remember, <a href=\"http:\/\/www.google.com\/search?hl=en&amp;as_q=&amp;as_epq=the+cossacks+work+for+the+czar&amp;as_oq=&amp;as_eq=&amp;num=100&amp;lr=&amp;as_filetype=&amp;ft=i&amp;as_sitesearch=delong.typepad.com&amp;as_qdr=all&amp;as_rights=&amp;as_occt=any&amp;cr=&amp;as_nlo=&amp;as_nhi=&amp;safe=off\">the  Cossacks work for the Czar<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>And once again, it&#8217;s a swing and a miss, because once again, it&#8217;s an attempt to use the carrot on banks, a rather generous payout for principal reductions, along with giving banks an incentive to shovel their most toxic mortgages to the FHA, as opposed to a stick, in the hope that house prices somehow &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,1088,985],"tags":[],"class_list":["post-189451","post","type-post","status-publish","format-standard","hentry","category-finance","category-real-estate","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189451"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=189451"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189451\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=189451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=189451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=189451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}