From "Liar Loans" to "Liar Subsidies"

Big late rally in the markets based on a Reuters report that the government will work towards subsidizing mortgage payments of troubled homeowners before they go delinquent. Touted by bulls as finally addressing (arguably) the real root of the problems.

"Under the evolving plan, sources said homes would undergo a standardized reappraisal and homeowners would face a uniform eligibility test. The administration may also lower the trigger level that decides who would be eligible for relief. Under an existing program, loans are reworked if a borrower is spending more than 38 percent of their gross income on their mortgage." - Reuters

Makes sense - to my mind, even if in negative equity, most homeowners would rather pay up and keep their homes than go delinquent, if at all possible. So that's cool.

BUT all those people who lied about how much they were making? So they would be given those juicy balloon mortgages that all got packaged off? They can start to tell the truth now. meanwhile, everybody else will probably can start to lie about how little they are making... Makes sense, right?!

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Argh - stopped out of EDU before the 23% drop overnight... Looks like I picked a bad day to stop being undisciplined with my stops...

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