‘Nother Bailout

Posted: October 29, 2008 in Economy, Politics

That’s right boys and girls, we are sliding down the rabbit hole at breakneck speed. Why bother holding on?

Treasury, FDIC working on $500-billion mortgage workout plan


Federal officials are moving closer to a plan that would provide government guarantees for as much as $500 billion in troubled mortgages, helping millions of people stave off foreclosure.

The Treasury Department and the Federal Deposit Insurance Corp., are working on details of a plan outlined last week by FDIC Chairwoman Sheila C. Bair (pictured). The plan, which would cost $40 billion to $50 billion, would be modeled on mortgage modification programs being implemented by Bank of America Corp.’s Countrywide unit and by the FDIC for mortgages serviced by the failed IndyMac Bank.

The idea is to use loan guarantees and other enhancements to encourage lenders to modify mortgages, lowering monthly payments to a point that borrowers could afford them. (more…)

This commentator on television said it best: “This sounds like they (the government) is going to go out and buy a bunch of bad lottery tickets”.


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