Muuuuuhhuuuhaaaaaa. In 2 short months Obama will be able to hold the title for ‘UNPRECEDENTED’ loss of seats on his watch. And yeah it is a COLLAPSE.
The souffle has fallen!
Gallup: GOP Has All-Time Biggest Lead on Generic Ballot: http://snipurl.com/1103yi
Plus promo for Season Finale in 2 weeks!
Another update, courtesy of CR and Diana Olick, HUD says no talks underway for another FTHB tax credit. Good, it is useless:
Diana Olick at CNBC contacted HUD today: Another Home Buyer Tax Credit?
[A] HUD spokesperson … responded: “No news here…there are no discussions underway to revive the credit.”
Here’s a song for anyone suffering through HAMP or HousingHell-
Above the post update- from Sunday:
HENRY: But in May, you said we are beginning to turn the corner (on housing). Can you still say that? Are we still turning the corner when these numbers are so awful?
DONOVAN: Ed, compared to where we were — and I am talking about where we have been for the last 18 months, the housing market, no question was significantly better. The issue now and what we are focused on is the future.
Shaun Donovan, HUD Chief, was telling America Sunday that HAMP worked just fine! I cannot even laugh at that having been in the Eighth Circle of Hell known as the HAMP application process.
So 500,000 people were strung along, paid on time, and were then kicked off the program and out of their houses much worse off financially and emotionally, and that was fine, right Donovan? the important thing was to protect TBTF from taking hit on inventory flooding markets right ? Man these folks pixx me off. And just how did that work out? WE ARE IN THE EXACT SAME POSITION!
In fact, it is worse. NOW homeowners no longer TRUST these half axxed Govt programs, they KNOW we are being strung along, so now WALK AWAY is in the minds of the middle class, FAIR GAME. You MORONS are BREAKING the PARADIGM!
Continuing the ‘doing everything but the right thing’ meme, HUD is rolling out another iteration of help for homeowners that shovels tax $ to TBTF without actually, you know, HELPING the actual homeowners.
Maybe this will be done as the MS White Paper suggested which I think makes sense. If not, it is a drop in the bucket of overflowing programs that just prop up TBTF and do nothing to address the underlying issue: consumer balance sheets MUST be fixed to get the economy growing again, period.
According to a mortgagee letter sent out today, the new program would provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and once refinanced and insured by the FHA. The new refinanced loan must have a loan-to-value ratio of no more than 97.75%.
The borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance, and it must bring the borrower’s combined loan-to-value ratio on that first mortgage to no more than 115%. The existing refinanced loan cannot be an FHA-insured one.
Over the last 18 months, the Federal Housing Administration (FHA) has insured 30% of purchases and 20% of refinances in the housing market. During that time, FHA also helped 1.1m homeowners refinance and insured 1.4m mortgages. More than 80% of those were for first-time homebuyers.
Donovan said the refinance program will target the growing number of underwater borrowers, who owe more on their mortgage than their home is worth…
God Bless America. I hope this saves some homes for some families. TBTF does not need anymore of our tax $ they are sitting on over a trillion already.
Update: Oh look, Trez has decided GSE backed mortgages, will NOT be aLLOWED TO PARTICIPATE IN THE PROGRAM! tHE EXACT OPPOSITE OF WHAT needs to happen, sorry damned caplock! I dont have time to fix it, here you go:
KBW said the FHA refi program is unlikely to have “any meaningful impact” on agency MBS, because only 8% of Freddie Mac and 14% of Fannie Mae mortgages have LTVs in excess of 100%. Additionally, the firm noted the Treasury Department has said the government would not consider allowing the GSEs to write-down underwater mortgages.
So IOW it is another BS head fake program to slow inventory. They wont be happy until housing takes the economy down again, it is already happening. The stupid it burns!
Update: Added Pts 3-4 of Sarah’s Speech and Full Video of the Event at bottom of post~
Courtesy of Maroon5
From Charles Krauthammer comes THE quote of the election:
(…) The Democrats are going to get beaten badly in November. Not just because the economy is ailing. And not just because Obama over-read his mandate in governing too far left. But because a comeuppance is due the arrogant elites whose undisguised contempt for the great unwashed prevents them from conceding a modicum of serious thought to those who dare oppose them.
Update: 8:30 am Revision to 1.6%, est was 1.4% (original 2Q reading was 2.6%). This is only the first revision folks, it will get worse on the next print.
~How low can you go~ How can they get this number up without the Return of the American Consumer? They can’t. You need us TBTF face it.
Obama expects the Fed to save his bacon. Ummmmm bacon. Obama, unable to take responsibility, has nicely deflected the MFM to portray this as all on the Fed. Pfft. Consumers need $ to consume, period.
We have been calling for a double dip for over a year, and the fact that a trillion dollars in stimulus only got us 3 really good prints on GDP is, well, FRAKKIN PATHETIC!!!
WHAT A WASTE! Ugh! And what do we have to show for it? New infrastructure? Nooooo. I have no G-D idea what they did with all that $. At least when I blow through a wad of cash I can usually look around the house and SEE things I invested the dough in. Like a new door, or pavers, or a tankless water heater or something. These jokers can not even do that much.
Well back to the drawing board for the FED and TBTF and TPTB.
Hey maybe like Churchill said, ‘After they try EVERYTHING ELSE, they will do the right thing’ and you know, HELP CONSUMERS who are, you know, 70% OF GDP. G-D these people are stupid.
I know I know, you don’t want to help homeowners. But hey, HOUSING LED US INTO RECESSION. It will LEAD US INTO THE DOUBLE DIP (it is as we speak).
Stop throwing wads of cash at FIRE and TBTF and try listening to Scott Brown who tried to pass a WORKER PAYROLL TAX HOLIDAY. DEMOCRATS voted against it.
Gawd forbid we get to keep our money. I know lots of folks do not want to help homeowners they perceive as irresponsible but face it, THOSE PEOPLE SPEND LIKE CRAZY!
Give underwater homeowners already backed by the GSEs, who have already blown through 200B with nothing to show for it BTW, give them a 1 pg refi.
We ALREADY back the loan, we are losing nada, zip, zilch. But if they refi and free cash flow it will both stop the bleeding in foreclosures AND boost CONSUMER SPENDING! Leading to ..JOBS! You remember jobs!
But nooooooo, we cannot have all these trillions going to help ACTUAL CONSUMERS, far better to give it to BANKS who are sitting on it to the tune of 1 trillion, doing ABSOLUTELY NOTHING with it. The Fed can give away all the $ it wants, THERE IS NO VELOCITY PEOPLE!!
At least spenders, SPEND!
Consumers gotta spend.
We don’t have time for Obama’s magical export plan to kick in, even though they are crashing the USD as fast as they can to get there.
Address housing in a meaningful way. TPTB don’t seem to get that even if you are staying in your home, the PERCEIVED drop in value AFFECTS CONSUMER BEHAVIOR!!! It is our biggest asset! How could it not? (Well maybe if we were big spendthrifts like D.C. )