"This book truly
is a must read."
-- Congressman Ron Paul
"THE FED IS DOING EVERYTHING POSSIBLE TO MAKE MATTERS WORSE!"
"THE HOMEOWNERSHIP PRESERVATION POLICY"
The Federal Reserve will ease terms on residential mortgages acquired in the rescues of Bear Stearns Cos. and American International Group Inc., seeking to stem foreclosures.
The Fed policy is targeting borrowers who are 60 days or more overdue on loan payments and covers modifications of interest rates and payment plans. The program uses the Fed’s authority in the $700 billion Troubled Asset Relief Program and was released today by the House Financial Services Committee.
The Fed's "Homeownership Preservation Policy" will not preserve many homes, but it will encourage homeowners to get 60 days late. For now, the policy only pertains to AIG and Bear Stearns loans, a very small subset of loans. When the policy fails, as it will, expect the Fed to expand it to other areas. Every failed policy to date has been expanded. This one will be no different.
