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Posts Tagged ‘aid’

The Three Biggest Lies the Government Is Telling You by Charles …

lewrockwell.com1/27/12

So I have chosen to focus on lies about each: the Federal Reserve, the orchestrator of monetary policy; the U.S. budget, the accounting of government fiscal policy; and a few of the Empire's war lies. I am sharing just a … The World Bank gets almost all of its money by way of the International Bank for Reconstruction and Development (IBRD),( also not a bank), which gets its money from taxes, the largest share coming from the American people. The IBRD also sells …

In defense of capitalism | RedState

www.redstate.com1/12/12

So all you people defending Mitt Romney's corporate activity as unassailable because by God the business of America is business and what not, remember he once made clear he didn't much care for you guys. …. (Actually it sounds quite a bit like what happened to the banks. …. I have said for months that Rush, Beck, Hannity even Palin keep telling us what our candidate should look like and then we have one and they won't put their money where their mouths are. …

The just released government’s “stress-test” results suggest that ten of the nation’s nineteen biggest banks will need a total of around $75 billion in new capital in order to withstand losses if the recession worsens.

According to the tests, some of the largest banks are stable, whilst others will need billions more in capital.

Meanwhile, government officials are stressing that the banking industry is still viable in spite of its vulnerability, but concur that it will need massive injections of capital if there’s to be an economic rebound.

The official line is, that none of the banks will be allowed to fail, and that it’s hoped that the tests will restore investors’ confidence, that not all the nation’s banks are seriously weak, and that those that are can be strengthened.

Kevin Logan, who is chief U.S. economist at Dresdner Kleinwort said, “Looking at the big picture, you can say that things aren’t so bad for the financial industry as a whole. The banking industry is not going to make a lot of money going forward, and that’s a dilemma for keeping banks solvent and getting them lending”.

The ten banks that need more capital, have until June 8th to develop a plan and to have it approved by their regulators, and analysts say that the test results sketched an encouraging but cautious picture of the banks.

The Treasury Department finally announced on Wednesday, April 4th the names of the first six banks that will get massive government subsidies.

The names of banks and what they’ll be getting are;

• JPMorgan Chase – $3.6 billion in subsidy and incentive payments
• Wells Fargo – $2.9 billion
• Citigroup – $2 billion
• GMAC Mortgage, $633 million
• Saxon Mortgage Services, $407 million
• Select Portfolio Servicing, $376 million

The government’s program was announced on February 18th but specific details have only just become available, and the delay caused major frustration amongst housing counselors and distressed homebuyers.

The stated aim of the program is to help as many as nine million borrowers to stay in their homes, and Wells Fargo recently said in a statement, “We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership”.

The two-part plan requires servicers to either reduce monthly payments to no more than 31% of an eligible borrower’s pre-tax income, or to refinance eligible mortgages, even if the homeowner has little or no equity.

The government has so far allocated $75 billion, to subsidize a part of the payment reduction, and it will also provide tens of thousands of additional dollars in incentives to participating servicers and borrowers.

Servicers will receive $1,000 for each loan modification, plus another $1,000 a year for three years if the borrower stays current. On top of this, the government will provide an additional $500 to servicers, and $1,500 to mortgage holders if they modify their at-risk loans before the borrower falls behind.

Homebuyers will get up to $1,000 a year for five years if they keep up with their payments, and the money will be used to lower their loan principals.

When asked “Where all this money come from?”, Treasury spokesman Andrew Williams answered, “We’re confident we’ll have enough money”.