President Bush’s Plan: The Real Consequences
The Blogosphere is identifying the flaws that some of the larger media seems to be skimming over regarding the government mortgage bailout plan. The OCRegister is blogging:
President Bush announced a plan today to help some subprime borrowers with adjustable-rate mortgages keep their homes. He said some loan servicers have agreed to freeze for five years the low introductory rate on subprime mortgages, if the borrowers demonstrate they can’t afford the loan when the teaser rate ends. (To read a Reuters story on it CLICK HERE.)
I interviewed three sources about the plan and got wide-ranging reactions.
Michael Pento, a senior market strategist with Delta Global Advisors, an investment advisory firm in Huntington Beach, lambasted the plan.
“I hate it. I think it’s disgusting,” Pento said.
Most economists agree with Michael Pento the plan, as much as it can be called one, only stands to benefit large lenders. Good borrowers still end up having to plan and take out products such as a Utah Heloc in order to paydown their mortgages.