Pelosi Creeps Out

Update:  The Democratic majority in the House of Representatives passed a so-called "cram-down" law allowing bankruptcy judges to modify mortgages loans  by reducing the principal, increasing the loan term or cutting the interest rate.  Repugnants were outraged by the bill's passage claiming it would allow Joe Blow to "game the system".  As if the system were not already gamed by the scammers on the Street of Broken Dreams!  In their ranting they failed to mention that wealthy or corporate debtors already have these options available to them for investment real estate or vacation homes.  The Mortgage Bankers Association said 48% of homeowners with sub prime adjustable mortgages are one month or more behind on their payments.  Foreclosures are being fueled by the loss of jobs and incomes as unemployment reaches historic proportions.  The bill goes to the Senate.  Stayed tuned to this cyberspace.

{posted 3/2/09}Firedoglake.com informs us that Speaker Nancy Pelosi (D-CA) backed down under Wall Street lobbyist pressure and tabled a provision allowing bankruptcy judges to restructure mortgages to prevent foreclosures.  Every foreclosure in a neighborhood drops home values by 1% according to Credit Suisse, but if bankruptcy judges are given the authority to write down mortgages, the avalanche of foreclosures could be reduced by 20%.  That is a good thing for struggling homeowners, but bad business for banks.  Best of all the law would not cost taxpayers a dime. Spend a dime and call Speaker Pelosi's office and tell them you want representation. The bankers have more than enough as it is.   202-225-0100