I’m as happy for the obscene profits by Messrs. Goldman, Sachs, Morgan, and Chase as the average person, but if I may just point out a few counterexamples:
The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.
The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year, according to a report released Thursday by foreclosure listing service RealtyTrac Inc.
The data show that, despite the Obama administration’s plan to encourage the lending industry to prevent foreclosures by handing out $50 billion in subsidies, America’s housing woes continue to spread. Experts don’t expect foreclosures to peak until the middle of next year.
Foreclosure filings rose more than 33 percent in June compared with the same month last year and were up nearly 5 percent from May, RealtyTrac said.
“Despite all the efforts to date, we clearly haven’t got a handle on how to address the situation,” said Rick Sharga, RealtyTrac’s senior vice president for marketing.
More than 336,000 households received at least one foreclosure-related notice in June, according to the foreclosure listing firm’s report. That works out to one in every 380 U.S. homes.
It was the fourth-straight month in which more than 300,000 households receiving a foreclosure filing, which includes default notices and several other legal notices that homeowners receive before they finally lose their homes. Banks repossessed more than 79,000 homes in June, up from about 65,000 a month earlier.
Wasn’t this among the first initiatives of the Obama administration, hence the one with the most time to take effect? What do you think, is F-minus too generous?
Also, how come the “experts” predict the foreclosures to increase for another year? What was this program for?
Redefault rates are near 50% after Fannie/Freddie loan modifications. Of course Fannie and Freddie can grant bigger loan mods (and probably will), but taxpayers will have to eat the cost.
Private loan modifications are redefaulting at a 58.1% rate 12 months after modification.
The best reaction to this dire news came from the brilliant investment advisor and blogger Michael Shedlock: “Can those people redeafulting can afford ANY payment? Even if they can the incentives to walk away are enormous.”
That’s the only positive side to this: all those deadbeat a**holes who voted for this un-American dictator will now be homeless and without a fixed address, hence unable to vote.
But they’ll have free health care, which they’ll treat with the same respect they treated their free homes.
BTW, I’m not against obscene corporate profits, if that’s what the market yields. But Obama rigged the market with the intention to punish big business and spread the wealth to freeloaders. So he’s either a liar (check) or an incompetent (check).