Wed Aug 1, 2012, 11:15 AM

cthulu2016 (7,946 posts)

Fire Ed DeMarco!! (FHFA head blocking WH housing plan)

Last edited Wed Aug 1, 2012, 11:58 AM USA/ET - Edit history (4)

This is a huge story, but the sort of story that is too complex to generate the sort of outrage it warrants. Long story short, man running agency refuses to implement WH mortgage debt relief program (that benefits his agency) because he theorizes that it is bad for taxpayers and doesn't like the idea of principal reduction on underwater loans. Needless to say, setting national fiscal policy is not his job.

Think of a pharmacist refusing to fill a prescription for birth control... except substitute stabilizing the housing market and saving thousands from foreclosure and giving the economy a shot in the arm for birth control.

Fire Ed DeMarco

http://krugman.blogs.nytimes.com/2012/07/31/fire-ed-demarco/

http://krugman.blogs.nytimes.com/2012/08/01/more-demarco/

Ed DeMarco, Top Housing Official, Defies White House; Geithner Fires Back

http://www.huffingtonpost.com/2012/07/31/ed-demarco-principal-reduction_n_1724880.html

Why is Ed DeMarco Blocking a Win-Win Housing Program?

http://business.time.com/2012/08/01/why-is-ed-demarco-blocking-a-win-win-housing-program/#ixzz22J8ixrCl

8 replies, 567 views

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8 replies	Author	Time	Post
Fire Ed DeMarco!! (FHFA head blocking WH housing plan) (Original post)	cthulu2016	Aug 2012	OP
Indeed, Sir: Termination Seems In Order	The Magistrate	Aug 2012	#1
Enough is enough. Nt	DevonRex	Aug 2012	#3
WTF????	1StrongBlackMan	Aug 2012	#2
So ...	1StrongBlackMan	Aug 2012	#4
And since his agency wouldn't foot the bill...	cthulu2016	Aug 2012	#5
Or, perhaps ...	1StrongBlackMan	Aug 2012	#7
.	cthulu2016	Aug 2012	#6
.	cthulu2016	Aug 2012	#8

Response to cthulu2016 (Original post)

Wed Aug 1, 2012, 11:31 AM

The Magistrate (80,594 posts)

1. Indeed, Sir: Termination Seems In Order

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Response to The Magistrate (Reply #1)

Wed Aug 1, 2012, 11:40 AM

DevonRex (19,966 posts)

3. Enough is enough. Nt

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Response to cthulu2016 (Original post)

Wed Aug 1, 2012, 11:38 AM

1StrongBlackMan (5,422 posts)

2. WTF????

I'm pretty sure what would happen to me if my boss suggested a course of action, even through another employee, and I told him, "No, I'm not gonna do it, not because the course of action would be unlawful, unethical or immoral; but because I think the course of action is unwise.

I KNOW what would happen to one of my subordinates if they refused to follow my suggested course of action.

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Response to cthulu2016 (Original post)

Wed Aug 1, 2012, 11:50 AM

1StrongBlackMan (5,422 posts)

4. So ...

The housing regulator also restated his position that allowing some homeowners off the hook for some of what they owe would pose "a moral hazard."

"This could give borrowers who are current on their mortgages a message that the government endorses forgiving a portion of mortgage debt if hardship can be demonstrated, creating a very broad incentive for underwater borrowers to seek ways to become eligible."

So ... Wouldn't a/the solution be to offer principal reduction (with Fed support at 63% like Timmy G has offered) for ALL FannieMae/FreddieMac owned/backed loans that are underwater?

Yes ... It would essentially be another bail-out to investors in shaky MBSs; but it would put $$$ in the pockets of nearly 80% of ~~homeowners~~ mortgage payers AND it would stabilize the housing market, overnight. homeowner

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Response to 1StrongBlackMan (Reply #4)

Wed Aug 1, 2012, 11:55 AM

cthulu2016 (7,946 posts)

5. And since his agency wouldn't foot the bill...

...what is it to him what "message" the government sends?

Perhaps "the government" is not worried about sending that message, which is why "the government" wants the program implemented.

The guy thinks he is the government.

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Response to cthulu2016 (Reply #5)

Wed Aug 1, 2012, 01:53 PM

1StrongBlackMan (5,422 posts)

7. Or, perhaps ...

The guy thinks he is the government.

He's one of those teaparty folks that think government should be run like a business.

Efficiency and cost effectiveness are important in every sector of the economy; but government operates above such principles, because it must do what is best for the people, not the franchise.

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Response to cthulu2016 (Original post)

Wed Aug 1, 2012, 12:58 PM

cthulu2016 (7,946 posts)

6. .

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Response to cthulu2016 (Original post)

Thu Aug 2, 2012, 02:18 PM

cthulu2016 (7,946 posts)

8. .

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