Forum Post: The Next Big Bank Bailout? (One More Reason to Occupy Wall Street!)
Posted 12 years ago on Oct. 9, 2011, 3:51 a.m. EST by economicallydiscardedcitizen
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Attorneys General Settlement: The Next Big Bank Bailout?
POSTED: October 5, 9:34 AM ET
Quote: Amidst all the bad news coming out of Wall Street and the economy, here’s something good: California has backed out of the talks for the long-awaited foreclosure settlement, now making it far from likely that the so-called “Attorneys General” deal will happen anytime soon.
California Attorney General Kamala Harris sent a letter to state and federal regulators explaining that she pulled out because the proposed settlement amount for banks guilty of bad securitization practices leading up to the mortgage crisis – said to be in the $20 billion range – was too small. From Business Week:
Harris says in a letter to state and federal negotiators that the pending settlement is "inadequate" and gives bank officials too much immunity.".........
Quote from one of the readers who replied: Middle Molly's America |October 6, 2:37 PM "Whatever number is worked out will not come anywhere close to approximating the devastation to the American people. There is a misconception that everybody who bought homes during the peak boom years were buying "more than they could afford" or using adjustable rate mortgages with liars' loans. Not true. I believe that most people who bought homes at seriously-inflated prices during this time used conventional mortgages.
They bought because they feared that prices would go even higher and they would never be able to afford a home. We were one of those families and we made over a 50% down payment. We didn't want a big mortgage payment. The value of our home is down over 30%. Who is going to pay us back the half (or more) of our down payment that is simply gone?
Then unemployment. 49,000,000 people were laid off or discharged between Spring 2008 and the end of 2009. Now we have no way of knowing how many of those people were discharged from part-time or seasonal jobs, nor do we know how many were hired back fairly quickly. But the Labor Department numbers do show 49,000,000 "separations" minus "quits" during that time period; whereas, the "separations" minus "quits" equaled only about 38,000,000 in the 20 months before the bloodbath.
How many of those 49,000,000 people who got pink slips were NOT able to quickly recover.. and lost their homes, their health insurance, their savings, had their utilities turned off, lost their credit, lost everything.... because of these shenanigans? Who will pay them back for their misery and their broken lives?"
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