U.S. on track for “fiscal train wreck”: Roubini

In a commentary according to the Financial Times, Roubini — one of the first economists to forebode. the housing crash in the United States and known as ‘Dr Doom’ by reason of his pessimistic forecasts — said fiscal and monetary stimulus had prevented another depression.

But he said that further quantitative easing likely to exist announced by the Federal Reserve next Wednesday will have little tenor on U.S. growth in 2011, “so fiscal policy should be doing some of the lifting to prevent a double dip recession,” he afore~.

He said the U.S. remains on an “unsustainable fiscal course” and the likely make-up of Congress after elections next Tuesday, in which the Republicans look set for strong gains, substantially takes fiscal reform off the agenda.

“The risk … is that something without interrupti~ the fiscal side will snap … The trigger could be a sin rollover crisis in a major U.S. state government,” he wrote.

“The beat of the coming fiscal train wreck will be prevented by the Fed’s easing. But the endanger is (Obama) … will then preside over … a Japanese pin stagnation, where growth is barely positive, and deflationary pressures and recondite unemployment linger.”

(Reporting by John Stonestreet; editing by Patrick Graham)

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As HAMP goes up in smoke, U.S. needs recently made known housing plan

http://www.nathanhamm.net/news/as-hamp-goes-up-in-discover-u-s-needs-new-housing-plan/ http://www.nathanhamm.net/word/as-hamp-goes-up-in-smoke-u-s-needs-new-covering-plan/#comments Tue, 02 Nov 2010 16:11:02 +0000 Nathan Hamm News goes HAMP housing needs Plan smoke U.S. http://www.nathanhamm.net/news/since-hamp-goes-up-in-smoke-u-s-needs-new-housing-method/ NEW YORK (Reuters) – The U.S. government’s ~ channel anti-foreclosure program isn’t winning many friends these days on this account that of its poor track record in getting banks to modify mortgages as being cash-strapped borrowers. Of the roughly 1.4 million borrowers who entered the … Continue reading →

NEW YORK (Reuters) – The U.S. government’s sheer anti-foreclosure program isn’t winning many friends these days since of its poor track record in getting banks to modify mortgages beneficial to cash-strapped borrowers.

Of the roughly 1.4 million borrowers who entered the loan modification program, about half were kicked out and did not make acquisition the amount of money owed on their mortgage reduced.

Critics of the control’s Home Affordable Modification Program, or HAMP, say it’s at this time time to give a fresh look at other ideas to etymon the wave of foreclosures. Below are three proposals that are generating the greatest in quantity interest.

GOVERNMENT-BACKED MORTGAGE REFINANCING

As far back as 2008, Glenn Hubbard, ~y economic adviser to former President George W. Bush and now a professor at Columbia Business School, has been pitching a device for a government-backed refinancing program.

Hubbard and his Columbia colleague Christopher Mayer lack to use Fannie Mae and Freddie Mac to prod mortgage servicing firms to refinance loans ~ the sake of some 30 million borrowers with high-interest rate mortgages. The Columbia professors, who assert their plan would cost nothing to U.S. taxpayers, propose the newly come mortgages would be folded into a new round of mortgage-backed securities issued ~ the agency of the government-sponsored finance firms.

The program would target cash-strapped borrowers who are current on their payments but face a risk of declining income and slumping home utility.

But to some critics this smacks too much of another housing bailout and to date the measure has drawn little enthusiasm from U.S. lawmakers.

RIGHT-TO-RENT

Some decide it’s time for the American Dream to include renting a legislative body as well as owning one. And supporters of this move begone from home ownership are the biggest proponents of a so-called erect-to-rent program.

One version of the plan, which was proposed ~ means of Westwood Capital managing partner Dan Alpert in 2008, would offer miscreant borrowers an option of renting their foreclosed homes at a market rate for five years. The homeowners-turned-renters then would be the subject of a chance to buy the house at market value down the thoroughfare.

The plan would require legislation but it is attractive to more because it forces both borrower and lender to compromise. The borrower gets to stay in the building as renter, but loses the deed to the home. The lender, steady the flip side, gets forced to accept a lower-than-primitive payment.

“It does create losses for the banks, but it avoids the put together of fire-sale environment,” Alpert said.

“CRAMDOWN”

The in the same state-called “cramdown” proposal takes the mortgage dispute to court, allowing struggling homeowners to apologize to a federal judge for lengthened loan terms, interest rate cuts or reductions in pledge balances by filing for bankruptcy.