I’M OUTRAGED.

THE OUTRIGHT FREAKING NERVE!

First the financial industry has lobbied congress over the years to rid the nation of restrictions on the banks ability to make money. We’ve done away with all the laws that derived from mistakes leading up to the Great Depression. Now, the mortgage mess that was created by the FED, Congress, the SEC and the banks, is threatening the economic well being of the nation and Bank of America wants Congress’ help.

A confidential proposal that Bank of America (BAC) circulated to members of Congress this month …

…warns that up to $739 billion in mortgages are at “moderate to high risk” of defaulting over the next five years and that millions of families could lose their homes.

To prevent that, Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates.

WHO BENEFITS FROM SUCH CRAZINESS? THE BANKS!

There’s no help for the mortgagees. Not that they should have any. There’s just a relief from the consequences of the banks’ risk taking.

Bank of America (BAC) Mortgages Mover Mike

Update:

In a piece in the Washington Post by David Ignatius, Wall Street Bank Run, he seems to be arguing for just what (BAC) is angling for, a federal bailout:

The answer to Wall Street’s bank run may be a version of what saved Main Street banks during the Great Depression. President Franklin Roosevelt created the Federal Deposit Insurance Corporation in 1933 to reassure the public that there was an insurer of last resort for the banks — and that people’s money was safe even if they couldn’t see it or touch it or put it under a mattress.

ONLY THIS TIME IT WOULD REASSURE THE BANKS THAT THEIR MONEY IS SAFE!

Ignatius does one good thing. He calls “Hillary Clinton’s proposed moratorium on home foreclosures…one of the truly bad ideas of our time.

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