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Mortgage Settlement Is Just Another Stealth Bank Bailout

Posted By admin On February 10, 2012 @ 4:14 am In Commentary,Featured Stories,Tile | Comments Disabled

Washington’s Blog ^[1]
Friday, February 10, 2012

Yet Another Bailout for the Giant Banks … Homeowners Get Hosed Again

The 50-state settlement with the banks (Oklahoma didn’t sign, but supports letting the banks go scot-free) over mortgage fraud is a stealth bank bailout, according to many top observers. See this ^[2], this ^[3], this ^[4],this ^[5], this ^[6], this ^[7], this ^[8] and this ^[9].

This is par for the course … All of Obama’s previous “mortgage relief” programs have really been stealth bank bailouts which screwed the homeowner ^[10]. And see this ^[11].

For example ^[12]:

Most independent experts say that the government’s housing programs have been a failure. That’s too bad, given that the housing slump is now … worse than during the Great Depression ^[13].

Indeed, PhD economists John Hussman ^[14] and Dean Baker, fund manager and financial writer Barry Ritholtz ^[15] and New York Times’ writer Gretchen Morgenson ^[16] say that the only reason the government keeps giving billions to Fannie and Freddie is that it is really a huge, ongoing, back-door bailout of the big banks.

Many also accuse Obama’s foreclosure relief programs as being backdoor bailouts for the banks. (See this ^[17], this ^[18], this ^[19] and this ^[20]).

Settling prosecutions for pennies on the dollar is a form of stealth bailout ^[21]. It is also arguably one of the main causes of the double dip in housing ^[22].

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URLs in this post:

[1] Washington’s Blog: http://www.washingtonsblog.com/2012/02/mortgage-settlement-is-just-another-stealth-bank-bailout.html

[2] this: http://www.nakedcapitalism.com/2012/02/more-on-the-role-of-second-liens-and-the-mortgage-settlement-as-stealth-bank-bailout.html

[3] this: http://www.huffingtonpost.com/yves-smith/mortgage-settlement_b_1264806.html

[4] this: http://www.businessinsider.com/theres-a-provision-in-this-mortgage-deal-thats-just-for-bank-of-america-and-it-sounds-sweet-2012-2

[5] this: http://finance.yahoo.com/blogs/daily-ticker/26b-mortgage-settlement-good-banks-not-good-homeowners-154031911.html

[6] this: http://www.businessinsider.com/watch-dick-bove-go-ballistic-over-the-mortgage-deal-from-hell-2012-2

[7] this: http://www.commondreams.org/headline/2012/02/09-5

[8] this: http://www.market-ticker.org/akcs-www?post=201723

[9] this: http://news.firedoglake.com/2012/02/08/49-state-foreclosure-fraud-settlement-will-be-finalized-thursday/

[10] screwed the homeowner: http://www.washingtonsblog.com/2011/11/%E2%80%9Cmany-americans-are-struggling-to-understand-why-banks-deserve-such-preferential-treatment-while-millions-of-homeowners-are-being-denied-assistance-and-are-at-increasing-risk-of-foreclosure.html

[11] this: http://www.washingtonsblog.com/2011/08/by-choosing-the-big-banks-over-the-little-guy-the-government-is-dooming-both.html

[12] For example: http://www.washingtonsblog.com/2011/01/government-says-no-to-helping-states-and-main-street-while-continuing-to-throw-trillions-at-the-giant-banks.html

[13] worse than during the Great Depression: http://www.washingtonsblog.com/2011/06/housing-prices-have-already-fallen-more-than-during-the-great-depression-how-much-lower-will-they-go.html

[14] John Hussman: http://www.hussmanfunds.com/wmc/wmc100104.htm

[15] Dean Baker, fund manager and financial writer Barry Ritholtz: http://www.businessinsider.com/henry-blodget-heres-the-real-reason-fannie-and-freddie-are-losing-so-much-money-its-2010-5

[16] Gretchen Morgenson: http://www.nytimes.com/2010/05/09/business/09gret.html?_r=1

[17] this: http://www.bloomberg.com/apps/news?pid=20601087&sid=adtt9PpAA4fQ

[18] this: http://www.newdeal20.org/2010/03/30/obamas-new-initiatives-help-for-homeowners-or-banks-9246/

[19] this: http://www.pdamerica.org/articles/news/2010-05-01-12-28-16-news.php

[20] this: http://www.ritholtz.com/blog/2010/08/guess-who-benefits-most-from-foreclosure-abatements/

[21] is a form of stealth bailout: http://www.washingtonsblog.com/2011/01/settling-prosecutions-for-pennies-on-the-dollar-is-a-type-of-bailout.html

[22] one of the main causes of the double dip in housing: http://www.washingtonsblog.com/2010/12/double-dip-in-housing-largely-caused-by-failure-to-prosecute-mortgage-fraud.html

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