Can’t say too many good things about this diagram; honest, to the point, great use of Web 2.0 techniques to tell a complex story.
America's Love Affair with Credit
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debt without end ...
mhedayat
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for the last time, NO mortgage modification in bankrupcty!
mhedayat
On March 30 Congress made it official. H.R. 200, the “Helping Families Save Their Homes in Bankruptcy” Act of 2009 was put down once and for all by a narrow margin in the Senate.
Pity. It turns out the Act would have gone a long way towards leveling a very uneven playing field. You can read about some of the (relatively) radical aspects of the bill in this summary from govtrack.us.
Now for the last time, stop fantasizing that the Federal Government is going to save your house and just hire a bankruptcy lawyer already.
Related Posts on Twitter
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Bankruptcy to Congress: "I'm back baby!"
mhedayat
Bankruptcy's Back
From MSN Money By Liz Pulliam Weston
It looks as if last year’s reform law did not really stem the enormous flood of bankruptcies after all. Here are the states with the highest bankruptcy rates. advertisement By Liz Pulliam Weston The lull in bankruptcy filings may already be a thing of the past. Consumer bankruptcy cases plunged to a 20-year low in the first three months of 2006, reflecting the passage of a tough new bankruptcy law last year. But the pace of new filings is already on the rise. Courts now see an average of 2,000 new filings a day — four times the number that were filed in November 2005 after the bankruptcy law went into effect, according to Chris Lundquist, founder of Lundquist Consulting, which tracks bankruptcy trends. If filings continue to rise at anything like this rate — which is not a given, but certainly a possibility — we could see close to 1 million filings by the end of the year. That would still be significantly less than the record filing levels that drove passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. But it would be a pretty clear indication that the bankruptcy juggernaut was just stalled, not cured, by the new law. [read the full piece]
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A Picture is Worth 1000 Unemployed Souls
mhedayat
hint: it's not good news
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lawyers who need lawyers ...
mhedayat
Anybody know a bankruptcy lawyer?
Fr0m The American Lawyer’s Nate Raymond comes this piece about NYC IP boutique Morgan & Finnegan
Morgan & Finnegan, the New York IP boutique that dissolved in February after a raft of partner departures, filed for bankruptcy Tuesday. The Chapter 7 filing, first reported on the blog Above the Law, came six days after a New York state judge placed the firm into receivership in response to a lawsuit by lender JPMorgan Chase. The boutique, whose revenue declined 38 percent last year, listed $6.37 million in assets and $10 million in liabilities. [read the whole article]
Twitter search results for Morgan & Finnegan
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Jadyn Financer Blog
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The New New Economy: jobs down unemployment up
mhedayat
... as jobs sag
Excerpted from the March 5 post, Worst is yet to come for job market, by Chris Isidore, CNNMoney.com senior writer
It’s no secret that the job market is bad. The Labor Department will release its latest jobs report Friday. Economists surveyed by Briefing.com forecast that the unemployment rate rose to 7.9% in February and that 650,000 jobs were lost. Still, as bad as those numbers are, some have argued that this jobs downturn is not as bad as the early 1980s. The unemployment rate peaked at 10.8% in late 1982. But several experts say it would be a mistake to come to that conclusion. They argue that unemployment rate only hints at why this jobs downturn is worse than any since the Great Depression … If the job loss forecasts for February turn out to be accurate, it would be the worst monthly drop since 1949. It would also bring total job losses over the last six months to 3.1 million, the largest six-month job loss since the end of World War II. Even adjusting for the large growth in the nation’s job base in recent decades, this would be the biggest six-month job loss since 1975. [read the rest of the article]
unemployment goes up, up, up ...
O'Bama Foreclosure Fix (take 1)
mhedayat
O'Bama - the fix is in
From CNN.com
Obama foreclosure fix open for business The Obama administration’s foreclosure prevention program is open for business. The multipronged fix calls for companies to help struggling borrowers by modifying loans so monthly payments are no more than 31% of monthly gross income. Under the program, homeowners who haven’t missed a payment can refinance into lower-cost loans even if they have little or no equity. The $75 billion plan will provide incentives to borrowers and loan servicers and investors to spur mortgage modifications. The government will also subsidize interest rate reductions to get borrowers to affordable monthly payments. “This plan will help make home ownership more affordable for nine million American families and in doing so, help to stop the damaging impact that declining home prices have on all Americans,” said Housing Secretary Shaun Donovan. Borrowers can now contact their servicers to see whether they are eligible for assistance. Federal officials will promote the program at homeownership events nationwide.
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Barb Lamont
Nice post. I think the best way to stop foreclosure is the produce-the-note strategy. I live in Tampa and know one person he helped, and it actually worked. This site has all the videos on the strategy. Watch all the videos here: http://tinyurl.com/bozo2d
Next Post
mhedayat
manufacturing dips (again)
Excerpted from March 9, 2009 post Manufacturing Index Contracts for 13th Straight Month by CHRISTOPHER S. RUGABER – economics writer for the Associated Press
A private measure of the nation’s manufacturing sector contracted for the 13th straight month in February, but at a slower pace than expected. The reading suggested to some economists that the decline of the ailing factory sector could be bottoming out, though they expect a recovery is still far in the future. The Institute for Supply Management, a trade group of purchasing executives, said Monday its manufacturing index actually rose to 35.8 from 35.6 in January. Analysts had expected a drop to 33.8, and a reading below 50 indicates the sector is shrinking. [full story]
do you qualify for bankruptcy? take the instant means test
mhedayat
Found this online instant means test from Nolo Press (the people who publish DIY bankruptcy and other legal materials). Works very well, links nicely to related information from the US Trustee, the IRS, the Census Bureau, etc. For my money, this means test calculator takes full advantage of the Internet as a dynamic medium. Highly recommended for quick reference.
Alabama Bankruptcy Means Test Calculator
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Alaska Bankruptcy Means Test Calculator
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Arizona Bankruptcy Means Test Calculator
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Arkansas Bankruptcy Means Test Calculator
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California Bankruptcy Means Test Calculator
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Connecticut Bankruptcy Means Test Calculator
Bridgeport | Hartford | New Haven |
Delaware Bankruptcy Means Test Calculator
District of Columbia Bankruptcy Means Test Calculator
Florida Bankruptcy Means Test Calculator
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Georgia Bankruptcy Means Test Calculator
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Hawaii Bankruptcy Means Test Calculator
Honolulu |
Idaho Bankruptcy Means Test Calculator
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Illinois Bankruptcy Means Test Calculator
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Indiana Bankruptcy Means Test Calculator
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Iowa Bankruptcy Means Test Calculator
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Kansas Bankruptcy Means Test Calculator
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Kentucky Bankruptcy Means Test Calculator
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Louisiana Bankruptcy Means Test Calculator
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Maine Bankruptcy Means Test Calculator
Maryland Bankruptcy Means Test Calculator
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Massachusetts Bankruptcy Means Test Calculator
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Michigan Bankruptcy Means Test Calculator
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Minnesota Bankruptcy Means Test Calculator
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Mississippi Bankruptcy Means Test Calculator
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Missouri Bankruptcy Means Test Calculator
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Montana Bankruptcy Means Test Calculator
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Nebraska Bankruptcy Means Test Calculator
Nevada Bankruptcy Means Test Calculator
New Hampshire Bankruptcy Means Test Calculator
New Jersey Bankruptcy Means Test Calculator
New Mexico Bankruptcy Means Test Calculator
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New York Bankruptcy Means Test Calculator
Albany | Brooklyn | Buffalo | Islip | New York | Poughkeepsie | Rochester | Syracuse | Utica | White Plains |
North Carolina Bankruptcy Means Test Calculator
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North Dakota Bankruptcy Means Test Calculator
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Ohio Bankruptcy Means Test Calculator
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Oklahoma Bankruptcy Means Test Calculator
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Oregon Bankruptcy Means Test Calculator
Pennsylvania Bankruptcy Means Test Calculator
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Rhode Island Bankruptcy Means Test Calculator
South Carolina Bankruptcy Means Test Calculator
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South Dakota Bankruptcy Means Test Calculator
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Tennessee Bankruptcy Means Test Calculator
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Texas Bankruptcy Means Test Calculator
Albilene | Amarillo | Austin | Beaumont | Corpus Christi | Dallas | El Paso | Fort Worth | Galveston |Houston | Laredo | Lubbock | Midland | Plano | San Angelo | San Antonio | Tyler | Waco | Wichita Falls|
Utah Bankruptcy Means Test Calculator
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Vermont Bankruptcy Means Test Calculator
Rutland |
Virginia Bankruptcy Means Test Calculator
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Washington Bankruptcy Means Test Calculator
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West Virginia Bankruptcy Means Test Calculator
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Wisconsin Bankruptcy Means Test Calculator
Eau Claire | Madison | Milwaukee |
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Mike
Just passing by.Btw, you website have great content!
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Making Money $150 An Hour -
David Kane, CPA
Great article – thanks for posting this, I have a few clients that I have referred to the site to review
High Times for Bankruptcy Counsel
mhedayat
Are you paying your bankruptcy lawyer enough? Not according to this piece posted Jan 28 in the ABA Journal by Debra Cassens Weiss :
Kirkland & Ellis Seeks Fee of $18.50 a Minute for Bankruptcy Work
Kirkland & Ellis has requested a fee of $1,110 an hour in a corporate bankruptcy [which] breaks down to $18.50 a minute … for its representation of titanium dioxide-maker Tronox Inc. Two other law firms are seeking nearly as much, requesting hourly rates in excess of $1,000… They are Sidley Austin, in the restructuring of the Tribune Co., and Skadden, Arps representing Circuit City. Bankruptcy law professor Lynn LoPucki of the University of California at Los Angeles told the wire service that fees for lawyers and other professionals in bankruptcy cases are growing at four times the rate of inflation. “As the economy gets worse, the bankruptcy lawyers are charging more,” LoPucki told Bloomberg.
Ed. Note: Members of the firms in question could not be reached for comment. I was informed by staff that they were having a money fight.
Seventh Annual DePaul Business & Commercial Law Journal Symposium
mhedayat
Into the Sunset: Bankruptcy as Scriptwriter of the Dénouement of Financial Distress
Thursday, April 16, 2009 10:30 a.m. – 5:00 p.m.
Westin Michigan Avenue, 909 North Michigan Avenue
Chicago, Illinois
For Better or Worse: Chapter 11 in the Post-BAPCPA Downturn
BAPCPA, the 2005 Bankruptcy Code overhaul, brought some significant changes to corporate reorganization, leading some to dub Chapter 11 as the “National Foreclosure Act.” This panel will examine the myths and realities behind this description by focusing on the more sweeping BAPCPA amendments: time restrictions on assumption or rejection of commercial leases, the limited plan exclusivity period, 20-day administrative expense claims and the attempted reigning in of executive compensation.A Fistful of Dollars: Hedge Funds, Private Equity and Bankruptcy
The presence of hedge funds and private equity in bankruptcy has become more prevalent in recent years, altering, sometimes dramatically, the outcome of troubled companies’ reorganization efforts. In addition to exploring the impact of these non-traditional bankruptcy players, our experts will also discuss the latest twist—what happens when these entities themselves are threatened with insolvency.
The Importance of Being Earnest: Bankruptcy’s Disclosure Rules
Bankruptcy is a transparent process and the transparency begins with the disclosure requirements of Bankruptcy Rules 2014, 2016 and 2019. These rules require that certain professionals working in the bankruptcy system disclose their connections with a variety of entities, including their past or present engagements, their fee arrangements with their client in the case, the identity of clients if more than one is represented and more. This panel will discuss pertinent provisions of these important bankruptcy rules, highlighting what must be disclosed and the sometimes dire consequences that follow a failure to comply.
Tickets are $85.00 on or before March 16, 2009 and $100.00 after that date. Price includes luncheon and written materials. Judges and students are free. CLE credit offered. For more information, contact Megan Bosau or Chalet Braziel at (312) 362-6178 or depaul.bclj@gmail.com.
Technorati tags: bankruptcy, education, CLE, symposium, law school, DePaul University College of Law, Chicago, Chapter 11
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Case Roundup Cir. 10
mhedayat
10th cir
Mosier v. Callister, Nebeker & McCullough, No. 07-4238 [Nov 13, 2008]
Suit was brought by trustee on behalf of estate against law firm and its attorneys alleging professional negligence, breach of fiduciary duty, vicarious liability, breach of the covenant of good faith and fair dealing, fraud, and civil conspiracy. The U.S. District court entered summary judgment for defendants. The Appellate court affirmed saying District Court did not err by imputing the conduct of selected officers to the defendant (a not-for-profit corp); correctly applied the doctrine of in pari delicto to hold that fault of the corporation was greater than that of its attorneys; and there was no error in applying the doctrine against a trustee in bankruptcy.
In re: Lanning, No. 08-3009 [Nov 13, 2008]
For purposes of calculating projected disposable income of an above-median Chapter 13 debtor under the BAPCPA, the circuit court adopts the forward-looking approach wherein a Chapter 13 debtor’s six-month, pre-petition “disposable income” (as defined by statute) is presumed to be the debtor’s “projected disposable income” for purposes of establishing the monthly sum that the debtor must commit to repayment of unsecured creditors in order to advance a confirmable payment plan and overcome objections to it. Amount of projected disposable income is rebuttable upon showing of “special circumstances” at the time of plan confirmation.
Technorati tags: 10th circuit, opinions, chapter 7, chapter 13, bankruptcy, BAPCPA, median income, projected income, plan, wage earner
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John Hilla
Nice round-up! (And excellent template-pick!) I’d like to do something like this for my own 6th Circuit …
In re Teknek, LLC, 05-27545
mhedayat
Case Name: In re Teknek, LLC, 05-27545
Opinion Issued Oct 17, 2008
Judge Hon. Jacqueline P. Cox
View and download the opinion in PDF format here
Technorati tags: bankruptcy, opinions, case-update, 7th cir, bankruptcy court, northern district, illinois, eastern division, judge cox
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case roundup - cir 1, 2, 3, 5
mhedayat
seal of the bankruptcy court
Cir 1 [Oct 06, 2008]
Gray v. Evercore Restructuring LLC, No. 072588
In a bankruptcy matter alleging gross negligence and breach of fiduciary duty for formulating and promoting an unworkable restructuring plan to the bankruptcy courts, judgment in favor of defendants is affirmed over claim that the district court erred in dismissing complain on in pari delicto defense grounds.
In Re High Voltage Eng’r Corp., No. 072589
In a bankruptcy matter, dismissal of trustee-plaintiff’s claim is affirmed where: 1) the trustee filed his notice of appeal in the wrong set of cases; and 2) the misdirected filing deprived the district court of jurisdiction to modify, vacate, or rescind the fee awards.
In Re Engage, Inc., No. 081257
In a bankruptcy matter, questions on attorney’s lien statute are certified where there was no controlling precedent and where the questions were determinative of the pending cause of actions. Certified questions are: 1) Does chapter 221, section 50 of the Massachusetts General Laws grant a lien on patents and patent applications to a Massachusetts attorney for patent prosecution work performed on behalf of a client? and 2) If chapter 221, section 50 of the Massachusetts General Laws does grant a lien and the issued patents or patent applications are sold, does the attorney’s lien attach to the proceeds of the sale?
Cir 2 [Oct 14, 2008]
Browning v. MCI, Inc., No. 062079
Bankruptcy court’s order enjoining property-owner plaintiff from further prosecuting state claims against defendant-MCI is affirmed where to the extent plaintiff’s claims were viable under state law, they were pre-petition claims that were discharged by confirmation of defendant-MCI, Inc.’s plan of reorganization.
Cir 3 [Oct 16, 2008]
In Re: Mystic Tank Lines Corp., No. 06-4033
In a bankruptcy case, allowance of a state government’s claim against debtor for damages for cleanup of contamination at a gas station is affirmed where: 1) the claim was subject to the police-power exception to the automatic stay against the pursuit of money judgments in bankruptcy cases; and 2) a state court had jurisdiction to enter a default judgment against debtor, notwithstanding that the state had already brought a related claim before the bankruptcy court.
Cir 5 [Oct 13, 2008]
Campbell v. Countrywide Home Loans Inc., No. 07-20499
In a suit accusing defendant of filing a claim attempting to collect a pre-petition debt in violation of an automatic stay in plaintiffs’ Chapter 13 bankruptcy, an interlocutory order granting partial summary judgment for plaintiffs is reversed where: 1) unpaid escrow payments that accumulate pre-petition in the year that a bankruptcy petition is filed, and which the creditor had a right to collect under the loan documents, constitute a “claim” under the Bankruptcy Code; but 2) the filing of a proof of claim including the amounts of these payments does not by itself violate an automatic stay in a bankruptcy proceeding. (Revised opinion)
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state-by-state bankruptcy guide
mhedayat
filings by state
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So Cat
I live in MI which is one of the hardest hit states. Indeed, our lawyer said the local trustee was like a “one armed paper hanger”. anyway thanks! http://www.bankruptme.blogger.com
who wins when you sell short?
mhedayat
By Susanne Robicsek, North Carolina Bankruptcy Attorney
Short sales are being pushed as a win-win situation since the bank gets something, and the homeowner avoids foreclosure. To me it looks like a lose-lose-lose situation. Short sales hurt the mortgage company who loses money. The homeowner loses their home. Families that live around the property lose value in their homes since short sales and foreclosure drive down the values of the homes around it. This hurts families who did everything right, but are still pulled into a situation where they are also underwater on their home. Short sales are not going to stop the spiral of foreclosures that have contributed to the mortgage crisis, and although they might make sense for a particular property owner they can create their own problems.
1 in 6 homeowners, or nearly 12 million homeowners, are upside down on their mortgages. Experts believe that this number will climb to over 15 million in a year, and this figure could be higher if house prices continue to fall. This was reported in a story on ABC News Nightline on October 17, 2008 on the mortgage crisis. The story was on mortgages that were upside down or underwater, meaning that the house was worth more than what is owed. [full article]
Ed. Note – thanks to Jay Fleischman for the heads up on this article
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skyminor
It’s true about the financially responsible people who did nothing wrong are being unfairly drug down by those who were not responsible. It’s written in at least one place that life’s not fair, and this is, regrettably, a brutal example of that.
Northern District Triple Play
mhedayat
seal of the bankruptcy court
In re Stamat, 07-13379
U.S. Trustee v. Stamat, 07-01278
Issued September 24, 2008
Judge Jack B. Schmetterer
View and Download the Opinion in PDF format here
In re Gage, 07-06876
Issued September 17, 2008
Judge John H. Squires
View and Download the Opinion in PDF format here
In re Cramer, 08-3853
Issued September 12, 2008
Judge A. Benjamin Goldgar
View and Download the Opinion in PDF format here
Technorati tags: bankruptcy court, nd il ed, northern district, illinois, eastern division, schmetterer, squires, goldgar, opinions, adversary proceeding, U.S. Trustee
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It's A Deal! Your Tax Dollars Fund Wall Street Bailout
mhedayat
Charles Dharapak/AP by Alex Johnson of MSNBC
President Bush signs the Emergency Economic Stabilization Act of 2008 in the Oval Office after the House passed the financial bailout bill Friday.
Pelosi: Bill brings order to chaos
Oct. 10: House Democratic leaders Nancy Pelosi and Steny Hoyer describe improvements in the bailout bill.
Blunt: Revised finance bill protects taxpayers
Oct. 3: House Minority Whip Roy Blunt says that the finance bill that was passed by the House contains provisions that “virtually ensures” taxpayers won’t lose money.
President Bush signed into law Friday a historic $700 billion bailout of the financial services industry, promising to move swiftly to use his sweeping new authority to unlock frozen credit markets to get the economy moving again.
“It’s complicated, and we’re going to make sure whatever we do is done in a deliberative fashion,” Bush told reporters after he signed the bill as soon as he got it from the House, which passed the measure after a topsy-turvy week of legislative victories, defeats and power plays.
But he promised to get the ball rolling quickly, because the authority is “essential to helping Ameica’s economy weather the financial crisis.” [read the rest of the story]
Technorati tags: bailout, congress, house of representatives, president, wall street, crisis, economy, news, breaking news, bush, MSNBC
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Boise Idaho Real Estate
I’m glad someone is happy about this bailout. If bailing out kids in families does not fix the problem and throwing money at non-productive employess does not fex that problem, I have a hard time believing that throwing money we don’t have at these monumental bad loans will fix this upside down economy. I think it is headed where the economic stimulus package ended up, nowhere, nada!
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Orange County Bankruptcies
I really hope these measures help. Our economy needs a boost up now.
Text of the Bailout Bill (the Devil is in the details)
mhedayat
Too Rich To Fail
From The Heritage Foundation’s blog The Foundry comes the text of the mortgage-rescue provision of the bailout plan currently under consideration in Congress
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
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.
(b) Necessary Actions.–The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for–
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.–The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.–The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.–The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.–The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, 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.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.–The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.
(2) Secretary.–The term “Secretary” means the Secretary of the Treasury.
(3) United States.–The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.
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Chase Morgan
BAIL OUT, OR – BARBARIANS AT THE GATE?
In the midst of the unsettled financial markets there’s been general agreement about one thing: the outcome of the current crisis will be far-reaching changes to the blobal financial system. For example, Morgan Stanley chief economist Stephen Roach believes the world’s central banks are now being forced to look afresh at how financial bubbles should be handled. Up to now their attitude has been that the markets must correct financial bubbles themselves.
However, the massive emergence of various kinds of derivative instruments created such huge inverted pyramids above an underlying asset class (such as prime mortgages) that things get out of hand when bubbles burst. Roach believes that central banks can hardly afford to condone bubbles in the future.
The question to be answered is: How and when they must take steps to avoid meltdowns?
Fin WeekAs some of Wall Street’s most venerable financial institutions teeter on the brink of self-destruction and are either taken over – in the case of Bear Sterns – or, as in the case of Lehman Brothers, allowed to implode, very few financial sectors appear capable of weathering the storms.
In view of the “bail out” agreement reached this past weekend it seems as if financial markets throughout the world will however react positively to this announcement. An announcement in my opinion not made by choice, however rather by force! Financial Guru – Warren Buffet correctly remarked that if the “bail out” plan was not approved – the American Economy would face certain “meltdown”!
In lieu of this it stands to reason that there weren’t much alternatives than to see the bail out plan pass through congress? A certain relief for most – al be it temporary. Both Presidential Candidates voted for the plan as has been seen. Not much of a choice by the looks and sounds of it!
Certainly the pressing question on our minds should be to now take a calm and responsible view back, on what has caused this catastrophy? We should all agree that it is a catastrophy, although suspended perhaps for the moment. One can only call it “suspended” as this has still to play out and we will see how this effects the struggling markets and economy alltogether in the short, medium and long term!
IS THERE ANOTHER 700 BILLION US$ available should this not work?
One cannot help but wonder after pondering on all of this for months on end – who is the biggest terrorist or threat facing America after all? Is it Osama Bin Laden – or worse, is it someone or something, much closer to home? I certainly don’t want to be in the shoes of the current President and wonder if anybody in his right mind would like to be in the future President’s shoes!
However, fill the shoe we have to, and it is now up to every single one of us to realise that the problems facing America is far greater than we want to believe. Republican, Democrat or Independant all stood together, cried together and worked together when the tragedy of 911 struck!
The tragedy of September 2008 is far worse!
We don’t have the liberty of taking on the world at present! No matter how righteous our beliefs are, no matter how convinced we are that terrosism should be fought in every corner, every nook and cranny, and in any place in the world. More Americans have died in this war than in 911 and we are not calling it a tragedy or catastrophy? No, we accept it because we are dying for our country, our beliefs and our ego!
Senator McCain says that he will not see to it that we pull out of this war before victory! He knows how it feels to come home defeated and to live to the consequences of knowing that a lot of people, or so he believes – has died in vain!
Are we staying at war because we don’t want to feel bad? Are we loosing our children because of ego’s?
Or worse, are we staying at war to loose our country and our very excistence?WE ARE FACING A POSSIBLE MELTDOWN!
IS THIS A BAIL OUT – OR ARE THE BARBARIANS KNOCKING AT THE GATE?
Undoubtedly the bail out is necessary, could it have been avoided – too late to ask! Can it be avoided in the future – we have no alternative but to believe it can! The question is how?
Now, we can tighten up the budgets on every field of the economy, we can harness in every corporate company to be more dilligent in their dealings. We can increase or decrease taxes, impose new legislation, fire the wrong doers or restructure government to be more lean and mean.
All of this is however in vain, if we are still going to remain a “country at war”!
It’s simple economics people! The war is killing America! It costs us a hell of a lot more than it costs Osama Bin Laden and Company to fight this! Perhaps he is a lot more astute than we will give him credit for! Perhaps he has gone into hiding, knowing that sooner or later – the “meltdown” will begin!
Sure we need to keep face in the world! Are we doing this now?
I don’ think so!
It is my opinion that if we wan’t to weather the greatest economic storm ever to hit our shores, we need to act and act now, before it’s to late! Our leader, Republic or Democrat will have to realise that we can’t stay at war and build our economy up again – it’s childish to even contemplate that.
If the world believes we are doing the right thing fighting terrorism offshore, then the world should climb in and help finance this war much more than they are currently doing! If not – we need to pack up and go home before it is too late!
No other country in the world other than America is facing a “meltdown”? Why should we?
I know there is a lot more to it than a normal citizen like you and me know about this alltogether. However, it is time we harness our strength as ONE NATION and forget about politics for now. We need to think about America – all of us!
The “Barbarians are at our Gate”, not in Irak or Pakistan!
Join me in my blog: http://chasemorgan.wordpress.com
GOD BLESS US ALL!
Chase Morgan
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Chase Morgan
R700 Billion Dollar Bail Out Fails!
Well there we have it, the first round to getting the “bail out” plan to be passed has officially failed! Although the markets, the top news agencies, chief economists and the likes of Warren Buffet have predicted that America has no choice but to accept the proposal – it has failed!
Even I am surprised to say the least, as I am sure most of you are too! After reading comments such as – PASS THE PLAN OR FACE ECONOMIC MELTDOWN – it has done just that! The plan has been failed in congress.
The question certainly on everybody’s mind now is, are they mad, are they trying to ruin the country, or are they once again simply playing politics instead of thinking about America first?
The question is who is to blame again? Someone is going to blame someone else and Republicans are going to blame Democrats and vice versa. As the news breaks on CNN the latest statistics show that the total votes for the plan were 205 and against were 228! Democrats for the plan = 140, against = 95. Republicans for the plan = 65, against = 133.
Does this matter who was for and who was against – NO IT DOESN’T! Who brought the plan to the table in the first place – YES GUESS WHO?
The fact is it did not pass and we can now either FIX THE BLAME, or for once Congress can sit down and START FIXING THE PROBLEM – NOW!
The fact that people are already blaming each other for delivering a bad speach – I am referring to the Republican comments on Nancy Pelosi’s speach, is abolutely BULLSHIT!
COME ON AMERICA – we are grown ups, not bloody kids! Who are these people? A plan of this nature is certainly based on “documented facts”, “written drafts” and NOT ON SOMEBODY’S BLOODY SPEACH!
AMERICA IS IN TROUBLE – GRAVE TROUBLE, yet we still accommodate leaders who are voicing their political emotions and how they feel about the other!
WHAT ABOUT US YOU FOOLS?
What about the people in the middle class who are fighting to survive day by day, and simply don’t have the luxury of waiting for you boys to finish your party games and your power fits??
Please read my post on BARBARIANS AT THE GATE and you will relaise excatly what I mean! We have more enemies of ignorance in our midst than all the terrorists in this world put together!
WORK THIS OUT – AND DO IT NOW!
Visit my blogg at: http://chasemorgan.wordpress.com
Regards
Chase Morgan
Let's Make a (Bailout) Deal!
mhedayat
It’s 1 am on Sunday morning, and congressional negotiators have just announced a tentative deal on a bailout plan for the country’s troubled financial system – The Politico:
House and Senate negotiators have reached tentative agreement on a financial rescue plan after a marathon Capitol negotiating session that started Saturday afternoon and stretched into early Sunday morning.
House Speaker Nancy Pelosi (D-Calif.) and Sen. Majority Leader Harry Reid (D-Nev.) said their “breakthrough” still had to be “committed to paper,” a process that was expected to continue through the night.
David Leibowitz 5:19 am on May 6, 2009 Permalink |
Again, the Senate proves to be the best bunch of politicians money can buy. Here’s the “Dishonor Roll” of banks and financial institutions who spent close to $50 million in order to derail mortgage modification in bankruptcy. http://firedoglake.com/money-spent-on-lobbying-to-defeat-mortgate-cramdown-in-1q-2009/
Mortgage 4:03 pm on May 13, 2009 Permalink |
Yeah, It’s the play of money in politics. What we can do?