Apparently, Congress wants to give bankruptcy judges the ability to forgive mortgages:
” One would let bankruptcy judges reduce the amount owed and interest payments on loans held by distressed borrowers.” Source: Yahoo Finance (see the full article HERE).
RIDICULOUS! If we allow any instrument of the government to nullify a legal contract based on personal discretion, we are going a long way toward complete asset devaluation. Would a lender ever lend again if their asset could be stolen by the government?
This is the latest in a most despicable development. Congress is proving themselves to be a bunch of election year CLOWNS (cue B&B music please). Another in a long line of bailing out the B&M crowd (bitchers and moaners). Senator Schumer says the “pressure is mounting.” Does this man have a spine? Or is getting reelected the highest priority on his mind? Will he destroy the whole system and foundation of our economy and what has made us successful?
Will he eliminate the whole idea of risk and reward for bailing out and not letting anyone suffer? If someone loses their house and has to rent, then so be it. I myself, did not overpay for my home and did not buy something way outside of my budget using some sketchy mortgage. Should I have bought something out of my range only to stand in line with the rest of the B&M’ers looking for a handout? It’s sickening folks…thankfully, 60% of Americans polled don’t want government funded bailouts for individuals or Wall Street (according to CNBC’s Larry Kudlow). I hope these same 60% punish any politician that gives a handout to the undeserving.
Update: here is a post from someone who is really venting on this topic: