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Tuesday, April 19, 2011

Is the government prolonging the foreclosure and real estate mess we are in? You decide!


Anonymous Anonymous said...

OK - I watched the thing twice and still don't get how this in anyway is the government wanting the foreclosure situation to be prolonged.

It tells you a bank went broke.
The FDIC had to guarantee the assets in order to get someone to take the assets.
Another bank (owned by rich people, who own all of the banks) bought those assets.
And, when people went belly up the FDIC covered the difference just like they said they would.

What is the news in any of that?

All of this was done during the bank bail outs.

The bank went broke. The FDIC takes it over. The FDIC wants someone to take it off of their hands. Or and this is a big or... they would have to give out cash to everyone who has money in the bank. See, that is the part that is missing in the story. The FDIC insures your money in your checking and savings accounts. The bank takes that money and they loan it out as mortgages. When banks go broke the FDIC gets all of those mortgages in exchange for paying off everybody who put money in the bank.

But, the FDIC would rather not start cutting checks to everyone who had money in the bank or run a bank themselves. So, they would like to find someone to take responsibility for all of those people who think they have money in their savings account. To do that they have to get someone to take the mortgages in exchange for being responsible for all of those savings accounts. To do that they agree that there is value in what they are selling, so the guarantee the notes.

With me?

The FDIC got stuck owning a bank and then owes all of the depositors money. To make that debt go away they sell the assets of the bank and guarantee the assets.

Pretty simple.


Chuck Repke

1:45 PM  
Anonymous Anonymous said...

Good Day to You Chuck, Have a nice Resurrection Day or Easter Day.
Seen Dave yesterday by the empty lot on Stryker Avenue working with the people to Beatify the neighborhood, pray that the people in the neighborhood respect all the hard work the "volunteers put into this bare empty lot.
Love You All!
Bill Dahn

3:20 PM  
Anonymous Anonymous said...

Thanks Bill,

We have had good luck with community gardens around the City. I think people know that people need food and appreciate the work they do.

You should try gardening there, you might have fun!


Chuck Repke

8:51 PM  
Anonymous Anonymous said...

I know this is off topic but I wanted to wish you all a Happy and Blessed Easter!!


9:11 PM  

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