Quote:
Originally Posted by woj
What's wrong is that there is no "saving $85 billion a year"...
sure, the homeowners will save 85B/year...
but for that to happen some other party has to get fucked out of 85B/year...
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didnt the big banks get "un-fucked" in the QE2 stimulus? Plus they dumped all their shit pools of loans on Fannie and Freddie.
then they get to fund at roughly zero % which they can park at the Fed for positive spread or loan out. This allows their equity to improve and pay out bonuses again.
So they get re-inflated but the "common man" doesnt- he cant get a decent refi and gets double whammied by low yields on hi savings.
I think the gov't should "force" the banks to free up the 100s of billions they have sitting around doing nothing by allowing easier access to 3.5-4% refis to qualified borrowers.
puts $$$ back into consumption (bulk of the economy), lowers household debt over time and makes people less apt to bail on their current mortgage