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85 Billion a month

Discussion in 'Politics, Elections & Legislation' started by Setterman, Sep 14, 2012.

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  1. Setterman

    Setterman Well-Known Member

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    The Feds will buy 85 billion in bad debt per month for an undetermined time until unemployment reaches 6%.

    They will also keep mortgage loans at near zero percent.

    Sounds like a stimulas plan without approval of Congress?
     
  2. jimrich60

    jimrich60 Member

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    I think reports said it was actually "only" 40 billion dollars a month (480 billion per year) until the Fed thinks its enough (totally open ended). But in a way, it's even worse than a Congressional stimulus, since the money for this is not even borrowed (that would be bad enough), but will have to be simply printed. Lots and lots of new paper printed up, with nothing backing it, which will lead to major inflationary pressure. Think hyperinflation, kind of like Germany in the 20's.
     
  3. TinMan88

    TinMan88 TS Member

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    Is "buying MBS" A MISREPRESENTATION AS WELL? And who holds these mortgage backed securities?

    PS, Your savings will now be made worth-less.
     
  4. ImpalaBob

    ImpalaBob Member

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    Those of us smart enough to not be in debt are penalized AGAIN!

    Gee .... my mortgage started at 14% then down to 12% then down to 8%.
    I worked hard, paid extra, and paid it off in 15 years.

    I bought what I could afford .... not what I dreamed of owning!!
     
  5. Setterman

    Setterman Well-Known Member

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    This will be paid with freshly printed money, so yes the value of the dollar will be affected, and fuel, food, and other necessities will cost more.

    Consumables will increase in cost. The "Middle Class" can thank the Dems for jumping right on National Health Care instead of working on JOBS and the ECONOMY the first 2 years of Maobama's reign when they controlled the House and Senate.

    Did I mention the Democratic led senate has not passed a budget in over 5 years?

    It's Bush's fault.

    Bumper sticker: Poor President Obama, If he's re-elected, Just think of the mess he'll inherit!


    setterman_2008_0303182.jpg
     
  6. Rick Barker

    Rick Barker Well-Known Member

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    Mr. Setterman,

    Just another one of your biased attempts to slander our beloved President.

    He told us a few months back, "the private sector's doing fine."

    He would not lie to us. If this story was true as reported by the lying Right Wing media, then the Federal Reserve is undermining the great work of our beloved leader.

    Have a great day sir, you lying &@%#€£+~!!!!!!!
     
  7. stokinpls

    stokinpls Well-Known Member

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    "Is my Kobi beef ready yet? My tee time's coming up in a few minutes."
    stokinpls_2008_0303133.jpg
     
  8. Stl Flyn

    Stl Flyn Well-Known Member

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    Hmmm...

    I would think that a major drop in the market is going to occur, if there is not a budget passed before the end of the year. Why, because all profits will be taken in this year before the tax rates increase, because of automatic policies that will take affect. Then again, if the top 5% of the people in the above article have their tax havens in place, it may not matter. I guess we will see what happens.
     
  9. Setterman

    Setterman Well-Known Member

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    Hmmmm..

    And here I thought it was just the Feds living up to their promises to the Banks to bail them out of those pesky FannyMae/FreddyMac loans they forced on them?
     
  10. Rick Barker

    Rick Barker Well-Known Member

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    Hmmm.....

    Wonder what I should have lunch?
     
  11. Stl Flyn

    Stl Flyn Well-Known Member

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    Setter,

    I live in a county that is, I am thinking 95% Republican. We have 92 active forclosures that will be closed in the next two months. Are you sure there is not some greed, and living on credit beyond their means, to blame instead of the forced loans you speak of? Looking at the totals of the majority of these mortgages, click above, I am thinking they where not forced because of the Fannie Mae/Freddie Mac guidelines you speak of.

    Any idea of what the percentages are of the dollar totals involved in these bad loans, of what are, and are not the "Forced Loans"?
     
  12. Setterman

    Setterman Well-Known Member

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    Flyn, It was too easy for everyone. When they lowered the bar, more people attempted to live like the Jones'. Lots of young couples over invested in their houses thinking they would make big bucks over time on a resale (just like their parents). One of them loses their job, and surprise...they can't make payments.

    That is totally different than giving a mortgage to a part time worker, and then giving them an $6,000 "first time home owner" credit to boot, and applying it to the downpayment.

    That was just plain stupid.
     
  13. Rick Barker

    Rick Barker Well-Known Member

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    Yes, Janet Reno forced lending insitutions to make loans to people who would not have other wise been qualified.


    When I bought my first home rates were about 6% and you needed to put down a minimum of 5% of the loan, and they wanted to know every sorid detail of your income. They were really dubious when a relative gave or loaned money to the home buyer to make the down payment.

    Then the rule in stone was your house payment should not exceed 33% of your montly income.

    I doubt any of those guidelines exist anymore.
     
  14. crusha

    crusha TS Member

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    And then again...there were also a good number of older folks who were trying to make a living off being landlords, who stretched themselves too far and then walked away ("strategic default"). It takes all types. The Seasoned Citizens with 10th grade educations aren't blameless in this, either.
     
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