Video Update: Coldwell Banker CEO on the data… Market Mover Tuesday: Pending home sales surge 6.7% in April as foreclosures force price drops….

Seeking to double the new home buyer tax credit to 15k for a year….Via Bloomberg: Interview and discussion with Jim Gillespie the C.E.O. of the Coldwell Banker. He talks about the data point about the 6.7% pending home sales in the housing market. (Bloomberg News)

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June 2, 2009. Tags: , , , . Economy, Finance, Foreclosures, Housing, Music, Obama Administration. 1 comment.

Update: CA Foreclosures up 80% in 1Q y/y…Las Vegas Leads Foreclosure Rates, CA, FL, NV highest – Bloomberg

Update: Diana Olick CNBC reports:

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April 22, 2009. Tags: , , , , , , , . Economy, Housing, Obama Administration, TARP, Uncategorized. Comments off.

Is MS’ QE2 refi for all on the way or is Ben blowing sunshine up our axxes?

So is QE2, (the quantitative easing not the ship), on the way or is Ben blowing sunshine and/or smoke up our axxes again?

CaculatedRisk:

From Fed Chairman Ben Bernanke: Challenges for the Economy and State Governments

On the economy:

While the support to economic activity from stimulative fiscal policies and firms’ restocking of their inventories will diminish over time, rising demand from households and businesses should help sustain growth. In particular, in the household sector, growth in real consumer spending seems likely to pick up in coming quarters from its recent modest pace, supported by gains in income and improving credit conditions. In the business sector, investment in equipment and software has been increasing rapidly, in part as a result of the deferral of capital outlays during the downturn and the need of many businesses to replace aging equipment….

UHHH come again? Exsqueeze me? Increased consumer INCOME???? consumer spending?? Have you SEEN the savings rate and the PCE?

Memo to Ben: Wishin’ and hopin’ and thinkin’ and prayin’ is NOT an economic strategy! Give us Growth or tell the SOOPERGENIUSES in the WH to get the hell out of the way!

Ben continues~(…) To be sure, notable restraints on the recovery persist. The housing market has remained weak, with the overhang of vacant or foreclosed houses weighing on home prices and new construction. Similarly, poor economic fundamentals and tight credit are holding back investment in nonresidential structures, such as office buildings, hotels, and shopping malls.

Importantly, the slow recovery in the labor market and the attendant uncertainty about job prospects are weighing on household confidence and spending. After two years of job losses, private payrolls expanded at an average of about 100,000 per month during the first half of this year, an improvement but still a pace insufficient to reduce the unemployment rate materially. In all likelihood, significant time will be required to restore the nearly 8-1/2 million jobs that were lost over 2008 and 2009. Moreover, nearly half of the unemployed have been out of work for longer than six months….

Why  yes!!!, that pesky LACK OF FRAKKIN JOBS is holding us back, just a WEE bit, mighty white of Ben to notice, pardon the pun, my days in the Bronx…

Let’s hope QE2 the MS way is coming (see excerpts and linky below), BTW guess who suggested this 1 pg refi for all??? JOHN MCCAIN IN 2008. yep.

The ONLY WAY IN HELL Ben’s forecast for ‘increased consumer spending and income!!!’ will materialize is if plans are in the works or about to be to launch the MS QE2 plan in which all Americans paying on time get an ‘instant 1 pg refi’ drop in their mortgages to market rates (which, following another buying binge by Fed would be 2.99% let’s say) in CONJUNCTION with cutting principle on the defaultees (this way the foreclosures will stop and the prices will stop dropping in housing) with the new rates for all! the larger group who pay on time wont be so pixxed since they get theirs too…

From the MS PDF-If it were possible to inject a significant amount of stimulus into the US household sector, and this stimulus had zero impact on the budget deficit, did not require an exit strategy, did not distort the markets, and took effect almost immediately, wouldn’t it seem like a slam dunk?
Such an option actually exists in the form of a change to
mortgage refinancing requirements. The Fed and
market forces have pushed mortgage rates to historic
lows, yet many homeowners are unable to take
advantage because they are blocked from refinancing.
This problem could be addressed if the Government
merely recognized its existing guarantee on the principal
value of a large part of the mortgage market – the
mortgages that are backed by Fannie, Freddie and
Ginnie – and acted to streamline the refi process.
There are 37 million mortgages outstanding whose
principal value is backed by the Federal government.
When these homeowners apply for a refinancing, the
application is subject to a standard underwriting process
that involves an LTV test (requiring a property appraisal),
an analysis of the borrower’s FICO score, and income
verification.
We estimate a potential average rate reduction of 125 bp on 50% of the outstanding volume of agency-backed mortgages. In the aggregate, the savings amounts to $46 billion per year. That’s more than the cost of the latest extension of unemployment benefits and more than taxpayers saved under the Make Work Pay tax
credits in the 2009 fiscal stimulus legislation.
The bottom line is that market conditions have created a
potential costless windfall that is not being used. There
is no need for a case-by-case analysis of a borrower’s
credit quality when the principal value of the mortgage is
already backed by the government.

…How Many Borrowers Could Be Impacted?
As seen in Exhibit 3, roughly half of all US households have a
mortgage. Of these 55 million households, 37 million have
mortgages whose principal value is already guaranteed by the
Federal government. Yet, when these homeowners apply for a
refinancing, the application is subject to a standard
underwriting process that involves an LTV test (requiring a
property appraisal), an analysis of the borrower’s FICO score,
and income verification. Obviously, the drop in home prices

during the past few years means that many borrowers will notmeet the LTV requirement – especially since there has been a significant tightening in the appraisal process according to press reports. Indeed, our housing analyst Oliver Chang estimates that more than one-third of all agency-backed mortgages outstanding now have an LTV above 80% (see Exhibit 2). Looking at the principal value of these mortgages, the proportion is even greater (a little above 40% of the total) because an outsized share are located in California, where property values are higher than the national average. There are probably an additional 10% or so of borrowers who don’t qualify for refinancing because of job loss or a low FICO score.
Thus, we believe that perhaps 50% of the outstanding principal value of agency mortgages may not be refi-able at present. As seen in Exhibit 4, this estimate is broadly consistent with actual versus predicted prepay9(ment speeds that currently prevail in the mortgage market. (go read the entire paper and how they propose this be addressed, seems a win/win to me)

but if they do not plan to do this then he is either totally disconnected or full of shxt and lying to us, neither is good…

August 2, 2010. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 2 comments.

Housing Update: Barney Frank and James Lockhart (former head of FHFA) on Fannie Freddie Bailouts

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James Lockhart (Dubyahs head of FHFA) of all people calls for principal reductions on CNBC this morning and Barney Frank D-MA said it will not happen..Through the Looking Glass…

James Lockhart, former head of the Federal Housing Agency, told CNBC Tuesday that he wants more generous mortgage modifications, including principal payment reductions.

…Although the latest Case-Shiller Index indicates the housing market has been improving for the last five months, there could be another spike in foreclosures, said Lockhart. While banks and investors have already marked down mortgages on their books, he said, that benefit has not yet been passed onto homeowners….

…“We still haven’t seen the falloff in foreclosures,” he said. “All the solutions have been on the income-side, and people’s balance sheets are suffering. It’s coming to the point where I think we really have to consider much more aggressive [loan modifications and] at looking at reducing principals.”

Lockhart also expects strategic defaults will start to occur more frequently. “You look at the bankruptcy numbers; the stigma is not there anymore,” he said….

Rep. Kucinich D-OH has called for an investigation into what looks to everyone like a backdoor TARP...

…Representative Dennis Kucinich, an Ohio Democrat who was an early opponent of Obama in the 2008 presidential race, thinks the move is backdoor way to help banks, and a congressional subcommittee he leads is investigating the Treasury’s decision to cover unlimited losses at the housing finance companies.

“This new authority must be used responsibly and for the benefit of American families,” Kucinich said. It “cannot be used simply to purchase toxic assets at inflated prices, thus transferring the losses to the U. S. taxpayers and acting as a backdoor TARP.”

That’s exactly what Treasury is doing, says Dean Baker, co-director of the Center for Economic Policy Research in Washington. “This looks like the original TARP,” Baker said, referring to $700 billion financial rescue fund, known officially as the Troubled Asset Relief Program.

Waxman and Issa also ‘concerned’

…Kucinich is not the only one on Capitol Hill up in arms. House Energy and Commerce Committee Chairman Henry Waxman, a California Democrat, said he doesn’t like the idea of a “blank check” for Fannie and Freddie.

And Darrell Issa, the top Republican on the House Oversight and Government Reform Committee, called it “a continuation of the bailout policies that have mortgaged away the future solvency of our country.”…

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January 5, 2010. Tags: , , , , , , , , , , , , , , . Politics. Comments off.

Update: Market Roundup: House vote on Financial Regulatory Reform Bill today, GE gets an exemption, Geithner wants to exempt TARP 2 from restrictions and Geithner pushing BofA and CITI to payback TARP over objections of FDIC…

Update 2: It’s up on the newslinkys now:

Conyers/Turner/Lofgren/Marshall/Waters/Cohen/Miller (NC)/ Delahunt/Nadler/Fudge Amendment #201 (Defeated 241-188)Revised: Would allow bankruptcy courts to extend repayment periods, reduce excessive interest rates and fees, and adjust the principal balance of the mortgage to a home’s fair market value as necessary to prevent foreclosure and revised to allow the VA, FHA, and RHS to take steps to facilitate mortgage modifications.  The amendment is substantively identical to title I, subtitle A and sections 121-123 of subtitle B of H.R. 1106 Helping Families Save Their Homes Act of 2009), which passed the House on March 5, 2009. (See related story)

Update: 1:25 pm EST: The DEMOCRATICALLY CONTROLLED HOUSE has just rejected the Amendment to the Financial Regulatory Reform Bill that would have allowed bankruptcy judges to ‘cramdown’ mortgages. This after we learned yesterday that of a pool of 3 MILLION delinquent homeowners (which is now up to 4.8 million BTW), Treasury/HUD have managed to get the banks to permanently modify 31,000, yes that’s thousand.  After that EPIC FAIL I became a SUPPORTER of this Amendment. It is not the BANKS holding these loans anymore peeps!! It is FAN FRED FHA!!!!

That being the case as taxpayers we will take a hit when those loans go to short sale and some investor makes a profit, WE will be bailing out FAN FRED (again) and FHA. Why wouldn’t we just buy the damned bad loans oh yeah that was what Paulson SAID he was gonna do with TARP.

Now WE the taxpayer guaranteeing FAN FRED FHA OWN these loans ALREADY. Why the hell arent we writing them down and taking the hit ONCE. Instead the homeowners get kicked out, it gets sold for less then the mortgage and we STILL give FAN FRED FHA the bailout for the loss. And now some investor with FREE money from the FED has the house and will dump it on the market in another bubble like the one they made that started this mess.

And Tim wants TARP II. But no cramdown. And they think they are ‘progressive’, they say they are Democrats.  Obama’s Treasury didn;t want it, therefore it didnt happen, This is Unbelievable.

This despite that IDENTICAL legislation had already PASSED the House once before and died in the Senate. Could not be more clear they are leaving the homeowners out to dry.

And everyone who lives near or is family with or sells goods to those homeowners. We are ALL gonna pay when people keep walking on these loans and getting foreclosed on, we will have ENDLESS bailouts of FAN FRED FHA as those homes are sold and resold in new bubbles and everyone makes a bundle but the taxpers and families who lose their homes. Utterly disgusting.

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Should BofA and CITI be allowed to leave TARP? Will they be back like a bad penny?

Look for the cramdown/judicial mod amendment action also. Since Treasury and the banks managed only 31,000 mods out of 3 MILLION loans I now support it, frak ’em.

Politico:

FINAL RULE ON THE REFORM BILL, including a summary of all 36 amendments made in order by the Rules Committee. Some got votes Thursday night, others will come today. Final passage is expected sometime around noon.

BILL HAS LOOPHOLES, report WSJ’s Damian Paletta and David Enrich, “Buried in a 239-page amendment to the U.S. House of Representatives’ financial regulatory overhaul is a provision that appears to do just one thing: exempts financial-services company USAA from some of the bill’s tougher provisions. The carve-out is one of a number of exceptions that allow companies to avoid fresh scrutiny envisioned by the White House, which is aiming to overhaul the nation’s financial-regulatory apparatus. The beneficiaries run from corporations such as General Electric Co. and Pitney Bowes Inc. to USAA, which caters to members of the military and their families, to so-called fraternal benefit societies.”

Geithner has learned NOTHING from the disasterous capital infusions into the big banks in TARP ROUND ONE. Now in Son of TARP he wants to EXEMPT everyone from the Feinberg pay czar that they installed to curb populist anger that THEY stoked in the first place!!! Which I agree was a stupid stupid limitation but CONGRESS did it, they will do it AGAIN. He cannot protect them. Who believes Congress will not arbitrarily add requirements later?

AND still no word on what the hexx they plan to do about HOUSING which was the FIRST thing named in TARP legislation…purpose was to address foreclosures and stabilize markets.:

WAPO REPORTS POSSIBLE SMALL BIZ TARP — by David Cho, A1, 2 column lead: “The Obama administration plans to channel money from the government’s massive financial bailout program to small businesses as part of an effort to limit the political and economic damage of high unemployment. One plan under consideration involves spinning off a new entity from [TARP] that would give banks access to federal funds without restrictions, including limits on executive pay, as long as the money was used to support loans to small businesses. … As an alternative, officials are prepared to ask Congress to modify TARP itself, easing the pay limits and other restrictions that would be imposed on small-business lenders taking the money, the sources said … Since the summer, the administration has been facing an uncomfortable dynamic in the economy. The ranks of the jobless have been growing, while big financial firms that got taxpayer bailout money have been thriving. In response, officials have been trying to recast TARP as aid for Main Street rather than Wall Street.”

GEITHNER SAYS SMALL BANKS WORRY OF TARP TAINT, reports FT’s Tom Braithwaite: “Tim Geithner, US Treasury secretary, on Thursday advocated exempting small businesses from restrictions attached to the bank bail-out program that Goldman Sachs , Citigroup and other large banks have been anxious to escape. In testimony to the Congressional Oversight Panel, Mr. Geithner said small banks were worried about being ‘stigmatized’ for asking for money from [TARP] and that this was exacerbating a credit crunch for their small business customers. They don’t want to come to do business with the government. ‘They think it’s a sign of weakness, not strength.’”

Geithner also pushed BofA and is pushing CITI paybacks of TARP, IMO to justify TARP 2: The Revenge of TARP!!!, over the objections of the FDIC. As originally reported by Andrew Ross Sorkin in the NYT. In the TARP C.O.P. questioning yesterday Geithner did not deny this. This morning a guest on CNBC noted this is a serious problem. We will post the video. FD: We are BofA/Merrill shareholders and have discussed this ad nauseum here on the site.

December 11, 2009. Tags: , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

Update: Housing: Barney Frank D-MA House Financial Svcs Cmte hearing on HAMP & Loan Modifications…

Update 3: CSPAN will have the hearing up later at this linky. Three panels included the following:

The House Financial Services Committee held a hearing titled, titled “The Private Sector and Government Response to the Mortgage Foreclosure Crisis.” Panel One * Ms. Molly Sheehan, Senior Vice President, Chase Home Finance * Mr. Jack Schakett, Risk Management Executive, Credit Loss Mitigation Strategies * Ms. Julia Gordon, Senior Policy Counsel, Center for Responsible Lending * Dr. Anthony B. Sanders, Distinguished Professor of Real Estate Finance, Professor of Finance School of Management, George Mason University * Ms. Laurie Goodman, Senior Managing Director, Amherst Securities, LLP * Mr. Bruce Marks, Neighborhood Assistance Corporation of America Panel Two * The Honorable Herbert M. Allison, Jr., Assistant Secretary for Financial Stability, U.S. Department of the Treasury * Mr. Michael H. Krimminger, Special Advisor for Policy, Office of the Chairman, Federal Deposit Insurance Corporation * Mr. Douglas W. Roeder, Senior Deputy Comptroller Large Bank Supervision, Office of the Comptroller of the Currency

Update 2: WSJ has some highlights. The Banks should pay attention, b/c TheHill is reporting the judicial modification aka cramdown bill is back, this time in the regulatory reform bill.

House Financial Services Chairman Barney Frank (D, Mass.) harshly criticized the Obama administration’s efforts to keep people in their homes.”We have a great frustration with the failure of the combined efforts of elements of the federal government to make a substantial impact on the foreclosure crisis,” Mr. Frank said in opening remarks at a hearing before his panel Tuesday on lender and government responses to soaring foreclosures.

…Critics have ratcheted up attacks on the administration’s Making Home Affordable Program, which they say is ill-suited to address what they contend are the current causes of spiking foreclosures: negative equity, high unemployment and a wave of resets on complex mortgages that are difficult to modify. The program relies on hefty incentives for servicers to lower borrower payments to 31% of income.

…Executives from J.P. Morgan Chase & Co. and Bank of America Corp. testified that the banks were struggling to move borrowers into permanent loan modifications because eligible borrowers weren’t submitting the required paperwork….

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December 8, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 2 comments.

Updates: Bernie Sanders I-VT seeks to put hold on Bens renomination; Black Swan says he will shun public life if Ben reconfirmed; Mark Zandi agrees double dip for housing ahead; Flashback: Bernanke in Denial 2005-2007

Update 2: Breaking on CNBC via Politico Bernie Sanders I-VT trying to put hold on Bens renomination hearing tomorrow. But they seem to have the 60 votes they need. Also today Taleb, of the Black Swan said if Ben is reconfirmed he will leave public life, seriously:

Nassim Taleb, the author of “The Black Swan”, said he would retreat from public life if Federal Reserve Chairman Ben Bernanke gains a second term at the helm of the central bank.”What I am seeing and hearing on the news — the reappointment of Bernanke — is too hard for me to bear,” Taleb wrote on his blog on The Huffington Post.

“I am not blaming Bernanke (he doesn’t even know he doesn’t understand how things work or that the tools he uses are not empirical); it is the Senators appointing him who are totally irresponsible — as if we promoted every doctor who committed malpractice,” he wrote.Taleb wrote he will not take part in interviews in the press and will not go to the World Economic Forum in Davos in January.

“I need to withdraw as immediately as possible into the Platonic tranquility of my library, work on my next book, find solace in science and philosophy, and mull the next step,” he wrote, adding that “I will only (briefly) emerge from my hiatus when the publishers force me to do so upon the publication of the paperback edition of The Black Swan.”…

Update: Boy it is exhausting having these fancy pants academics and/or advisers to MAC and Obama come along and agree with MiM months after we take a position, like being Cassandra, it sucketh big time. Now I just heard Marty Feldstein agreeing on Kudlow too, lol. To be fair Feldstein came out on this in October...sure now that it’s COOL to say there is a double dip ALL the kids wanna do it!

Soon Orszag and Krugman will be the cheese, and we all know the cheese stands alone.

Mark Zandi of Moodys (who will be at the big job summit this week, and who is at every Nancy Pelosi jobs bill panel as well), the man who advised MAC and later the Congress on the stimulus, is now forecasting a second leg down in housing, a big one, the one we and others have been yammering on about for months.

Maybe now that one of the chosen few who get listened to (despite often being quite wrong) and whose ideas are often quite unsuccessful (see WSJ on Orszag and Stiglitz’  EPIC FAIL on the risk posed by FAN FRED that somehow gets them promoted and invited to all the summits and now they help design all our economic policy and even our healthcare system!!) is on board with the fact that housing is in imminent danger of collapsing under the continuing deterioration of employment and the failure of the mo mods. Well maybe now they will do the damned HOLC and get it done.

FDR did it, in out boom,. Buy the home loans from the banks,w e already own them in FAN FRED anyway, write down 20% everyone underwater, boom, done. Let homeowners pay it off via their taxes to the government. Give a payroll tax holiday. Stop the uber spending in areas that don’t help the underlying economy. The entire 78 billion directed to housing is still sitting there waiting to be paid out on permanent mods that aren’t happening.

The meltdown of the U.S. housing market is not over yet, and home prices will soon start trekking downward again as a flood of foreclosures looms, a well-known economist said Wednesday.

Home prices, as measured by the Standard & Poor’s/Case-Shiller U.S. National Home Price Index, will trough in the third quarter of 2010 after declining 38 percent, Zandi said. The index peaked in the second quarter of 2006 and hit a trough in the first quarter of 2009, a drop of about 32 percent. Home prices in many regions have been rising.That is because foreclosure sales fell over the summer and fall as mortgage servicers have tried to put stressed homeowners into the Home Affordable Modification Program and other modification plans, he said. “This lull in foreclosures sales has resulted in the price gains in the past few months,” he said.

“Foreclosure sales will increase, and home prices will resume their decline by early 2010 as mortgage servicers figure out who will not qualify for a modification,” he said.

Zandi said 7.5 million foreclosure sales will have taken place between 2006 and 2011. The majority of these sales, however, have not emerged yet, with 4.8 million foreclosure sales expected between 2009 and 2011….

(more…)

December 2, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

WOW! Must See TV: Congressional JEC panel ripping Geithner apart: Rep Brady (R-TX) first to ask him to resign: MiM starts Obama economic team “shake-up” watch…

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If you look at UE Tim, the US is substantially WORSE off than it was when Obama took office to answer Timmehs whine….In fact someone should tell Tim, taking him at his word that he believes all measures, any measure of economic activity shows things are better since January, the measure of foreclosures and delinquencies has also more than doubled since Obama ‘took charge’:

Update: 12:10pm EST: uh oh. Kudlow says and Steve Liesman confirms, that Geithner is the most fiscally conservative member of Obamas economic advisers.  No wonder we are in a world of hurt! CNBC just ran the Brady Timmeh back n forth so it should come up in a video post shortly. will get it up right away.

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Update: 11:!5am OMG OMG Geithner just threw Seniors unda da bus!! He acknowledges to Brownback that yes the CBO score only works if Congress actually DOES the Medicare cuts and he insists they must and should and will DO THE CUTS. He says the costs have to be reduced, Brownback is saying but why cant we save Medicare? Good grief Geithner is a disaster, you aren’t supposed to tell Seniors they are getting thrown under there Timmeh, Obama will be displeased. Good ad for the GOP though!

WOW!! Excellent!!!! Live feed from CNBC here

I am starting Geithner Fired/Resigns Watch now, there will fer shure be some sort of ‘ Obama economic team shake-up’ to placate the rumblings as they get ready to ask for MORE STIMULUS…They can’t get away with it under Geithner IMO, looks like he is marked as sacrificial lamb, but the Progressives will be no happier with Larry Summers, lol….

By dequalss

Typos abound, getting ready while I do this- TImmeh is red and ranting and blaming Bush and Rep Brady made him acknowledge yes he was head of NY Fed when this collapse happened, and they are cross talking, Brady says the public has lost all confidence in Geithner and he reflects badly on his President, he says at some point Geithner has to take responsibility…ohhh excellent!!

Update: 11:04am EST: Rep. Burgess (R-TX) just said “I don;t think you should quit, you shouldn’t have been hired”. Is that a bus engine I hear idling??? This the Joint Economic Committee and is made up of both Senators and House members, double the fun!! Now Sen Brownback is going off about the health care plan and the Yuan peg…

(FD-MiM is a former AIG employee and shareholder and we have followed Geithner’s handling of the crisis as NY Fed-head closely for two years now, our posts on Geithner, Hank Paulson and AIG are legion. Our previous posts on Geithner and the troubled CITI bailout here and  here and here and here and here and even here ….)

Recall Sens DeMint and Isakson called on Geithner to resign last March. As did several members of the House.

This is in keeping with the report in TheHill this morning:

A Congressional Progressive Caucus (CPC) member said there’s “growing consensus” among liberals that Treasury Secretary Timothy Geithner should step down.

Rep. Peter DeFazio (D-Ore.) said Wednesday that he and other liberal House members are becoming increasingly tired of Obama administration economic policies that they say are too focused on maintaining the stability of Wall Street firms and largely ignore “Main Street.”“A growing consensus in the caucus [believe that Geithner should be removed],” DeFazio said on MSNBC this evening, adding that some lawmakers are “considering questions regarding him and other economic advisers.”

DeFazio said that lawmakers have not yet drafted a plan to remove Geithner. The lawmaker also took aim at top Obama economic adviser Larry Summers for furthering many of the same policies favored by Geithner.

“We need a new economic team,” said DeFazio…..

Hey man, live by the populist pitchforks, die by the populist pitchforks. Hard to put that class war genie back into the bottle and it was a HUGE mistake to embolden the populist rhetoric flame throwers in the House…

This drum beat is getting louder. Dodd thinks Geithner is a drag on his polling, lol, and Simmons, Dodd’s GOP opponent called for Geithner’s resignation already:

A former House Republican running for the Senate in Connecticut is calling for Treasury Secretary Timothy Geithner to be replaced over his handling of AIG’s bailout.

GOP candidate Rob Simmons reacted to a report by Neil Barofsky, the inspector general of the $700 billion bailout program, known as the Troubled Asset Relief Program (TARP).

Barofsky’s report criticized the Federal Reserve Bank of New York, which Geithner led during the bailout, for a series of missteps that Barofsky said ended up requiring the government to provide additional support to AIG.

“The report issued yesterday by the inspector general for the TARP program is a deeply troubling account of Secretary Geithner’s failed management of the AIG bailout in which he cost taxpayers $13 billion in unnecessary new debt,” said Simmons, who appears to be the only candidate or office-holder to call for Geithner’s replacement in response to the report.The federal government committed more than $180 billion to AIG, which was crippled by poor investments and trades in credit default swaps, a financial derivative.

Simmons also attacked his opponent, Senate Banking Committee Chairman Chris Dodd (D-Conn.), in the statement calling on Geithner to be replaced.

“The cozy relationships between the bailed-out financial companies and powerful politicians like Tim Geithner and Chris Dodd are exactly why Americans have lost trust in Washington, D.C., and why we need new leadership with the skills and integrity to clean up their mess and get our economy back on track.”…

More great housing news:

US mortgage delinquency rates and the percentage of loans that entered the foreclosure process jumped in the third quarter, with both reaching record highs, the Mortgage Bankers Association said on Thursday.

The percentage of loans on which foreclosure actions were started rose to 1.42 percent in the third quarter, an all-time high, up from 1.36 percent in the second quarter and 1.07 percent in the third quarter of 2008.

…The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from 9.24 percent in the second quarter and up 265 basis points from 6.99 percent one year ago, the MBA said in its National Delinquency Survey. The delinquency rate broke the record set last quarter. The records are based on MBA data dating back to 1972.

The percentage of loans in the foreclosure process at the end of the third quarter was 4.47 percent, an increase of 17 basis points from 4.30 percent the second quarter of 2009 and 150 basis points from 2.97 percent one year ago.

The combined percentage of loans in foreclosure and at least one payment past due was 14.41 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey….

November 19, 2009. Tags: , , , , , , , , , , , , , , , , . CITI, citigroup, Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

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