All About Money

27 Aug
2009

#1 – Subprime lenders are back to their old ways and YOU are paying them.

Subprime Lenders Line Up For $21 Billion In Fresh Handouts

“Firms that fed off the subprime lending frenzy that devastated the banking system are lining up to collect more than $21 billion in taxpayer funds meant to help bail out borrowers now in trouble on their loans.

The funds come from the federal government’s Home Affordable Modification Program (HAMP), begun in February by the Obama administration to coax lenders into modifying mortgages that might otherwise result in foreclosure. According to a Center for Public Integrity analysis of public records, of the 25 top participants in the program, at least 21 were heavily involved in the subprime lending industry. Most specialized in servicing subprime loans, but several both serviced and originated the loans.”

So let’s see, Obama flambé’s subprime lenders and then turns back around and hands them $21 billion??

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Crediting the stimulus for positives in the marketplace?

The Stimulus Is Definitely Working?!

“The other reason why it is illogical to claim a boost from the stimulus is that, for the most part, it hasn’t gone out the door yet. In a recent presentation made at the International Monetary Fund, Doug Elmendorf, director of the Congressional Budget Office, presented the rates of spending for different pieces of the stimulus package. He estimates that by the end of fiscal year 2009, which falls on Sept. 30, just a month from now, 32% of the income transfers for things such as food stamps and extended unemployment benefits will have been spent and 31% of the tax cuts will have been disbursed. And by the end of fiscal year 2010 just 73% of the money allocated to these programs will have been spent.

Even Christina Romer concedes that this part of the stimulus hasn’t done much. She says that “consumption fell slightly in the second quarter after rising slightly in the first quarter,” which “could be a sign that households are initially using the tax cut mainly to increase their saving and pay off debt.”

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Cash for Clunkers?

Final ‘Cash for Clunker’ Data a Big Three Disappointment

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Whoops!

Rangel Failed to Disclose $500,000 in Assets for ’07

He is the Chairman of the House Committee on Ways and Means. What is the House Committee on Ways and Means you ask?

“The Committee of Ways and Means is the chief tax-writing committee of the United States House of Representatives. Members of the Ways and Means Committee cannot serve on any other House Committees, though they can apply for a waiver from their party’s congressional leadership. The Committee has jurisdiction over all taxation, tariffs and other revenue-raising measures, as well as a number of other programs…”