Posted 3 years ago on Sept. 28, 2018, 2:56 p.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
The economy will fail, because lenders have their cake and ate it too. The 1% and most of the next nine have theirs. The rest of us have debt and negative net worth.
"... 9 million homeowners lost their homes. They now have to rent. Rents are rising, debts are rising. Corporate debt, municipal debt, and student debt are way higher now than 2008.
"In my book Killing the Host you have Barney Frank saying that he got the agreement of Secretary of the Treasury Hank Paulson to write down the mortgages to realistic charges: namely, number one, what the mortgage borrowers could afford out of their income, and number two, the carrying charge of the mortgage would be the going rent rate, which is what mortgages historically have tended to approximate.
"Obama said, no, I’m representing the bankers, not the debtors....
"... The federal government could have bought the junk mortgage loans in default for maybe a quarter of the value. Let’s say 25 percent, $25,000 for a $100,000 junk mortgage. This is essentially what Blackstone Realty did, and what private equity people did, buying foreclosed properties...."