**Fact Sheet: New Steps to Help Homeowners Avoid Foreclosure **
President Bush Announces Steps To Help American Families Keep Their Homes And Reform The Mortgage Finance System
Sub-prime crisis will drag America into recession, says boss of largest US lender](http://business.guardian.co.uk/useconomy/story/0,,2155307,00.html)
· Bond fund manager calls for Bush’s intervention
· UK’s Northern Rock raises rates for riskier loans
Phillip Inman
Friday August 24, 2007
The Guardian
The US economy is on the edge of recession after a severe downturn in the housing market and reports of a collapse in consumer spending, the head of the country’s largest mortgage lender said yesterday.
Angelo Mozilo, chief executive of Countrywide Financial Corp, which is one of the chief victims of the sub-prime home loan debacle, said the housing crisis was the result of “one of the greatest panics I have ever seen”.
When asked if housing would lead the US into a recession, he said: “I can’t believe … that this doesn’t have a material effect … on the psyches of the American people and eventually on their wallet.”
His company received a welcome boost on Wednesday when Bank of America announced a $2bn (£1bn) investment.
His fears for the economy were supported by Bill Gross, who runs Pacific Investment Management Company, the world’s largest bond fund. Mr Gross called on President George Bush rather than the Federal Reserve to restore US consumer confidence and avoid “destructive housing deflation”.
Full post can be found here (my bold).
Over Zealous Headline Writer Joe
Here is the question and reply from said boss:
*"When asked if housing would lead the US into a recession, he said: “I can’t believe … that this doesn’t have a material effect … on the psyches of the American people and eventually on their wallet.”
When you walk into prison, you are advised not to ‘take’ anything from other inmates. New buddies will offer ‘free’ cigs, on ‘payback’. Usually payback is 2 for 1. I get the feeling those who over-extended their finances will get the freebies, while the rest of us will be working off their debt in the shower room on our knees.
Freaking inmates are in control.
Musical Refrain (Oldie but a Goody) - Foreclosure of a dream
Shades of the S&L banking Crisis when this was written… still seems appropriate even for today.
Rise so high, yet so far to fall.
A plan of dignity and balance for all.
Political breakthrough, euphorias high.
More borrowed money, more borrowed time.
Backed in a corner, caught up in the race.
Means to an end ended in disgrace.
Perspective is lost in the spirit of the chase.
/chorus/
Foreclosure of a dream,
Those visions never seen,
Until all is lost,
Personal holocaust.
Foreclosure of a dream.
Barren land that once filled a need,
Are worthless now, dead without a deed.
Slipping away from an iron grip,
Natures scales are forced to tip,
The heartland cries, loss of all pride.
To leave ain’t believing, so try and be tried.
Insufficient funds, insanity and suicide.
/chorus/
Now with new hope some will be proud.
This is no hoax, no one pushed out.
Receive a reprieve and be a pioneer.
Break new ground of a new frontier.
New ideas will surely get by.
No deed, or dividend. some may ask why?
You’ll find the solution, the answers in the sky.
Rise so high, yet so far to fall.
A plan of dignity and balance for all.
Political breakthrough, euphorias high.
More borrowed money, more borrowed time.
/chorus/
And, of course, this is a unbiased and balanced and totally fair ‘news’ source.
I would ask people to look at some of the other articles and posts. These guys are nut jobs.
Check it out for yourselves. Don’t take my word (or Mr. Larson’s word) for it.
Good advice Will.
But it is my opinion that the paper holders are the biggest winners.
How can that be, when the paper they are holding is decreasing in value?
The trick so to buy low and sell high. Unfortunately, the people who have done this were able to find suckers, eh, other people, to buy just before the bubble burst.
If the government steps with ways to help people make their payments, the mortgage holders will not get stuck with as many “decreasing value” properties.