Freezing foreclosures? Doubt it. The government has already shown it's willingness to

[jtuck004]

bail out the banks for bad behavior. What makes anyone think they are going to stop now?

We just watched as trillions of taxpayer dollars were handed over to the people who brought us the financial crisis. Now it sounds like the latest solution to our continuing economic problems is a whole lot more of the same? What is the fed thinking?

People are talking about shutting down the housing market because the trail of titles is broken, that "mortgage executives" (don't tell me that America is not a land of opportunity - these folks were car wash attendents and barkeepers only last week) were illegally signing paper which shows that the title was never properly transferred. This would leave the banks that sold what amounts to stinky garbage holding or having to take it back. They would likely be insolvent, and in danger of being taken over by the FDIC. (I apologize if you were drinking coffee and this made you snort it out your nose).

The economy is sick. Ben Bernanke is an expert on the Great Depression, and when money was used to heal the banks back then, he says, the Depression was over, wasn't it? Maybe we could fix the Great Depression II Recession by flooding the banks and their wealthy investors and owners with cheap money? That is one of the things that helped us blow up the housing bubble, and everything was just all right then, wasn't it? We need to send those same banks more money, LOTS more money, to make the economy better. So here is the NEW plan. Bernanke wants to buy trillions of dollars of treasuries from the banks, because if they and and their rich shareholders and investors are richer it will trickle down upon the rest of us. He just knows it will...

But there is one small problem. he has programs on the books that have loaned these same banks about $15 trillion, (they are supposed to pay back all but $3.4 trillion - you didn't expect them to get bailed out for nothing, did you?). He sold this idea to the little people by telling them that credit would flow freely again after this wholesale transfer of trillions of taxpayer dollars to rich people, that business lending would re-start. Instead, of course, the banks bought treasuries and other investments that paid them smaller but sure returns (seems this is not a good economic environment to risk giving loans :().

But how can give them MORE money if they are going under from the weight of the crappy real estate deals they are having to eat? No, no, no, that would never do. We can't very well send money to people who are undergoing criminal investigation by 50 states attorney's general, or who are failing under the weight of billions of dollars of derivatives they are having to take back because THEY DID NOT DELIVER THE TITLES TO THE UNDERLYING PROPERTIES LAWFULLY.

How then to send a whole boatload of new money to the people Timothy Geithner filled his lunch calender with for the past 6 years?

Maybe we could figure out a federal solution to the mortgage issue. Make it legal to have the car wash attendents and barkeepers who are now mortgage experts with no training to sign what are now titles with legal continuity.

Punch in the zeroes, Timmy. Now, let's go to lunch...

The Automatic Earth states it much more eloquently...

The Foreclosure Crisis

What foreclosure crisis? The US government has been bailing out banks for three solid years now, and there's still anyone alive who believes they’re going to drop them over mere technicalities? I like idealism up to a point, but....

<snip>

If Obama et al. would go after the banks for the foreclosure fraudulence, QE 2, coming up in a matter of days/weeks, simply couldn’t work. How are you going to get liquidity back into the financial system if you’re suing the well-deserved heebees out of the banking system at the same time? Hey, it would shatter the entire illusion. And yes, that's what it is.

All those people who claim that QE doesn't work, that QE 1 didn’t, 2 won't, yada,yada, you don't get it. QE works like charm. Just not for you, or for the purpose it's advertised for.

It won't get banks back into lending, nothing will, and it won't get anyone a job or a home or anything else. What it WILL do, though, is transfer another inordinate amount of money from the public to the private sector. QE 2 isn't meant to alleviate YOUR problems, it never was nor will be. Come on, be honest, what government program in the past 3 years has done anything for you?
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More here...

[dixiegrrrrl]

1. My fear is you are correct.

If they can keep this thing together until after the election, then it is lame duck rubber stamp time.

[girl gone mad]

2. k & r