[steam_cannon]

$this->bbcode_second_pass_quote('BigTex', 'W')hich part of NON-NEGOTIABLE did you not understand?

[smileyhouston]

does anyone know anyone that has had this happen to them?

[BigTex]

$this->bbcode_second_pass_quote('smileyhouston', 'd')oes anyone know anyone that has had this happen to them?

[Sixstrings]

$this->bbcode_second_pass_quote('', '[')b]How To Guarantee A Depression, 12/8/08 Edition

I would normally consider this "tinfoil" in the extreme, but Steve Liesman has reported it TWICE in the last hour on CNBS, so here you have it:

Administration officials are allegedly considering using eminent domain to buy up MBS, with the justification for doing so being invocation of "national security".

Folks, if that's anything other than some nutball flying untethered off the reservation in DC I will go officially on record right here and now as saying that a Depression worse than the 1930s has just been assured.

Why?

Because the market says that MBS holders are nuts to allow modifications as they do not prevent redefaults!

"Dec. 8 (Bloomberg) -- Most U.S. mortgages modified by lenders to help keep struggling borrowers in their homes fell back into delinquency within six months, the chief regulator of national banks said.

Almost 53 percent of borrowers whose loans were modified in the first quarter of this year re-defaulted by being more than 30 days overdue, John Dugan, head of the Treasury Department’s Office of the Comptroller of the Currency, said today at a housing conference in Washington."

"Mortgage Modifications" don't work, are bad for the economy and investors, and the government needs to stop trying to prevent house price declines, shifting instead to forcing the bad debt to default and home prices to contract to affordable levels.

End of discussion.

The mouth-breathers among Congress, the National Association of Realtors and Home Builders need to shut the hell up and deal with reality as expressed by the marketplace, not their fanciful Peter Pan dreams.

IF Congress (or the Administration) is actually stupid enough to try something like this two things will happen instantly:

You will need to go long Georgia Pacific and International Paper as the number of lawsuits that will be filed will instantly deplete the available inventory of paper across the United States. This will be highly stimulative to that part of the economy.
All lending by private parties with capital, both inside and outside the United States to US markets, will cease instantly.
The market has proved that "mortgage modifications" do not work as they do not prevent defaults; the majority of modified loans redefault within six months.

Therefore, the MBS holders are exactly correct in refusing to play along and instead demanding that the proper legal process be followed to foreclose, seize the property, realize whatever losses may exist and move on.

If our government wants a Depression there could hardly be a better way to guarantee one than threatening to attempt to abuse Eminent Domain in such a fashion, say much less actually going through with it. [url=http://market-ticker.denninger.net/archives/677-How-To-Guarantee-A-Depression,-12808-Edition.html]Market Ticker

[StormBringer]

We the people for the people....ya right

Its high time for a restructuring of values in all markets..not just home values..I'm in up to my neck in my home but I make my payments on time every mth, although we do often have to choose between having the extra's in life...

My point is that I ergo we may drop some value in our homes but if the over-market for goods and services is corrected as well we would over time all have a better life...

[Snowrunner]

$this->bbcode_second_pass_quote('cbxer55', '')$this->bbcode_second_pass_quote('pstarr', 'o')h no. can't do that. that's socialism and we must remain in awe of blockheaded right-wing conservative pap. I must have forgotten.

[yesplease]

$this->bbcode_second_pass_quote('pstarr', 'T')rains by nature are socialist. They require public right of ways, monopoly, and government dispensation for costs and damage incurred in their operation and management.

[mos6507]

$this->bbcode_second_pass_quote('Snowrunner', '
')Will he be able to soften the landing a bit? Maybe, but I think he is very quickly running out of time as well.

[TommyJefferson]

Trains by nature are socialist. Wrong.

They require public right of ways, monopoly, and government dispensation for costs and damage incurred in their operation and management. Wrong.

Train travel breaks down barriers between classes and opens lines of communication between natural opponents. Wrong.

Trains must be demonized. Wrong.

Ronnie Raygun started the process and the Bushes finished off the job. Wrong.

You possess the ability to think more rationally and less hyperbolic than this.

[nobodypanic]

'wrong' isn't a counter argument.

[TommyJefferson]

Absurd hyperbole isn't an argument.

Thus, no counter is possible.

[yesplease]

You can try, but you'll probably just get more of the same in response.

[yeahbut]

$this->bbcode_second_pass_quote('TommyJefferson', 'A')bsurd hyperbole isn't an argument. Thus, no counter is possible.

[ReverseEngineer]

$this->bbcode_second_pass_quote('TommyJefferson', 'A')bsurd hyperbole isn't an argument. Thus, no counter is possible.

[yesplease]

$this->bbcode_second_pass_quote('ReverseEngineer', 'A')bsurd hyperbole most certainly IS an argument, and a very useful one at that. It amounts to carrying a thought process to a logical conclusion that seems outrageous at the end, but you get there in incremental steps each of which in itself is NOT outrageous, and is hard to dispute.

[ReverseEngineer]

$this->bbcode_second_pass_quote('yesplease', 'O').K. now you're just making stuff up. Hyperbole is not logical, and is by definition exaggerated, not to be taken literally

[yesplease]

Talking about whether or not the argument was good or bad, a matter of personal taste, is fine I suppose, but it ain't what TommyJefferson or I were talking about AFAIK.

You or I can have the best argument in the world, but if it's built off of something that's incorrect or uses illogical reasoning, then it's wrong. How good or bad it is doesn't change that. That said, even if it's flat out wrong, there seem to be plenty of c0rnu/d00mc0pians who think it isn't just good, but great, but that doesn't make it right or wrong. It's assumptions and logical reasoning are what make it right or wrong.

[BlueGhostNo2]

$this->bbcode_second_pass_quote('ReverseEngineer', 'T')his very method has gained me quite a bit of credibilty on the board to date just BECAUSE it works. I could make it work a whole lot better also, just in deferance to Eastbay and others on the Mod board, I don't get near so hyperbolic as I can to make a point. LOL.