The issues with this Plan C is that it is setup to be a buffer on further deterioration in various loan categories but the big one is commercial real estate. The commercial real estate market is gigantic and many of those loans are still active:…”
http://www.mybudget360.com/the-doctrine-of-preemptive-bailouts-and-the-biggest-bailout-you-havent-heard-about-the-us-treasury-plan-c-and-the-35-trillion-you-will-be-paying/

“I would advise people, if they hurt themselves, to swear,” he adds.

U.S. mulling mortgage aid for unemployed
http://www.reuters.com/article/newsOne/idUSTRE56D04920090714

It’s not actually mortgage aid for the homeowners, but a secret subsidy for the banks. As Meredith said this morning in qualifying her endorsement of banks, unemployment is likely to rise to 14% and the banks cannot survive that. Obviously, banks not surviving is unthinkable in certain quarters, so just use taxpayer money to allow them to pretend these people aren’t unemployed. When the banks don’t go out of business, they can tell us how realistic the stress tests were.

ll this proposed regulation is not necessary. Just change the rules so that any officer of a company may not exercise options granted to them until they’re not officers of the company anymore, at which point they MUST exercise and hold the shares for at least 5 years.’

maybe even that 5 year span isn’t long enough. buts a start

Thing of it is, though, WOULD the holders eat a loss? If they’ve been losing on their investment up until now, one would think one would have heard about it — it’s been 3-5 years now.

In any event, I’m not suggesting lowering principal, “simply” extending the original terms of the loan long enough for something sensible (if possible) be done. Seems to me that if you lower principal when value goes down, it’s “only fair” to raise principal when value goes up.

Bet that won’t fly either…

I believe whoever holds the securitized mortgage has to eat a loss if they take on more years with the (lower) teaser payments. As was shown by cramdowns being shot down in the Senate by bank lobbyists, nobody wants to eat a loss like that unless it is enforced by the free market.

Stupid? You bet. In fact, Yves Smith at Naked Capitalism has pointed out that a30-50% cramdown of a delinquent borrower’s mortgage principal would cost less to banks than foreclosing on and auctioning the house.

Create an overseas call center FOR INDIVIDUALS.

Kids call my kids they get (for purposes of illustration only) India. Friends call my wife, they get India. Telemarketers get India. Pollsters get India. Bill collectors (heaven forbid) get India. IRS? India.
Lawyers? Process Servers? India. Prank calls (but I repeat myself)? India. Call the damn cell phone at 4am? India.

Is this great or what? Whomever implements this, sign me up!

Thanks for posting that link at ZeroHedge. I watched that video and I noticed something interesting: at the beginning houses were a fraction of per capita income. Then it got to where it was on par with per capita income. Then it got to 1.5 to 2x per capita income. Now it seems to be sliding back. I am sure that at some point it will get back to a fraction of income again, but that will take several years, probably.