The Mother Of All Frauds

[Rocky_Shorz]

United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

so the 800B can go as high as 11.3T?

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.—The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

Well banks are already taking up to a 65% hit on short sales with the current market, by allowing banks to dump this paper to free assets to offer more loans might not be as bad as you are thinking.

The banks are still getting slammed for their mistakes.

The part that could help the current homeowner is this might save many from foreclosure, it's the HELOCs that have nothing to back it right now, and many are almost as large as the original mortgage. the 2nd on a short sale gets a 10% kicker to make them go away, so the banks can toss it to the Fed to get it off their books, taking a 95% hit, but frees up other money they can borrow for other loans. All a homeowner needs to do right now is stop paying the second and keep the first current... This is going to help the collapse of many families falling into foreclosure...

The other thing to notice is this is going to the Treasury, not the Fed Reserve, remember what I was saying about backing a new currency with homes... This move is keeping America, owned by America.

I'm in no way an expert, but I don't see it as bad as the other options they had...