February 26, 2008
The Mortgage FrontFDIC braces for more bank failures:
Shaky loan portfolios continue to darken the landscape for the nation's banks, as federal regulators prepare for the possibility of an uptick in failures of financial institutions, according to recent government reports.Not good, especially coupled with more foreclosures on mortgages resetting to higher interest rates:
Bank seizures of U.S. homes almost doubled in January as property owners failed to make higher payments on adjustable-rate mortgages.No wonder consumer confidence is the lowest in 14 years.
It's the economy (again), stupid.
The situation is critical, yet the Bush White House is threatening to veto the Senate home foreclosure bill. Funny, it doesn't have a problem with corporate bailouts or squandering hundreds of billions of dollars in Iraq like a junkie on meth, yet balks at spending a mere $4 billion to buoy the economy and help homeowners out of their crappy loans.
As the Bush White House once again finds its inner cheapskate when it comes to helping the working class, some states aren't waiting to limit the economic fallout. Yet, Dear Leader says don't panic, it's not a recession, just a "slowdown".
Meanwhile, Countrywide -- which laid off 11,000 employees and agreed to sell itself to B of A for the basement price of $4.1 billion because of the mortgage crisis -- says let them eat caviar and $105 Kobe steaks.
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