Instead of bankruptcy cramdowns that Obama wanted to force banks to modify loans for people with jobs that have pay reductions and do intend to stay in the home  I learned today from “The Times” that banks not only won on that vote but on top of the TARP funds and continued donations to the banks paid by the taxpayer.  The banks got a reduction in the insurance premium that they have to pay the FDIC for deposit insurance “which is like car owners voting themselves lower premiums on their auto insurance”.  Folks, we are in a time where the FDIC is in full speed paying for mortgages that they have insured that have not failed.  Guess who is going to pay for the deficiency of funds to the FDIC?  Taxpayer gets nailed again but covertly. 
So, here is the scenario.  We get to see houses deteriorate in value another 20 to 30% in the next 12 months due to increasing foreclosures because the banks wouldn’t allow cramdown. Banks are foreclosing left and right on houses which is hurting their balance sheets because it is more costly to foreclose than to short sale or modify.  Please note – modifications on mortgages are not happening for homeowners in my state.  So the TARP funds that we have given them to aide in this process is not doing what the funds were supposed to do.  
1. We pay for the loss to the banks that are foreclosing instead of modifying AND if they allowed cramdown it would have been another a modification.
2.  FDIC is going to run out of money because of the numerous foreclosures so taxpayer will pay again
3.  Our neighborhoods are going to decrease in value even more since people are leaving their homes since they can’t modify their mortgages so they are left with no choice. 
4.  Short sales decreases value as well since you are getting houses at a better price than a foreclosure. 
Bottom line we are in a continued flat spin until sometime in 2010 – we will crash and burn and smoulder and then just sit on the ground for a few years lying flat on our backs. 
Banks are calling the shots not our Congressman and obviously not our President and we are paying the banks to stay alive so they can keep telling us how to live to add to their already huge salaries and bonuses.  Don’t let them fool you if they say they have taken a pay cut.  Banks lie!  Just look at Bank of American this week.  Caught in lies and fired!  We need more of this. 
Congress you need to take care of the people of America and not yourselves.  I want a list of everyone that voted NO for cramdown so I can pray daily that they will be ousted in their next election.
Disgusted in Connecticut,
Geena@geena.biz

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