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

In a commentary ~ the sake of the Financial Times, Roubini — one of the first economists to predict the housing crash in the United States and known as ‘Dr Doom’ with respect to his pessimistic forecasts — said fiscal and monetary stimulus had prevented a different depression.

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

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

“The risk … is that a thing on the fiscal side will snap … The trigger could have ~ing a debt rollover crisis in a major U.S. state government,” he wrote.

“The worst of the coming fiscal trail wreck will be prevented by the Fed’s easing. But the risk is (Obama) … will then preside over … a Japanese mode of expression stagnation, where growth is barely positive, and deflationary pressures and sharp unemployment linger.”

(Reporting by John Stonestreet; editing by Patrick Graham)

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As HAMP goes up in smoke, U.S. needs of the present day housing plan

http://www.nathanhamm.net/news/as-hamp-goes-up-in-expose to ~-u-s-needs-new-housing-plan/ http://www.nathanhamm.net/news/as-hamp-goes-up-in-smoke-u-s-needs-new-saddle-cloth-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/viewed like-hamp-goes-up-in-smoke-u-s-needs-new-housing-chalk out/ NEW YORK (Reuters) – The U.S. government’s ~land anti-foreclosure program isn’t winning many friends these days because of its poor track record in getting banks to modify mortgages ~ the sake of cash-strapped borrowers. Of the roughly 1.4 million borrowers who entered the … Continue lecture →

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

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

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

GOVERNMENT-BACKED MORTGAGE REFINANCING

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

Hubbard and his Columbia assistant Christopher Mayer want to use Fannie Mae and Freddie Mac to prod pledge servicing firms to refinance loans for some 30 million borrowers by high-interest rate mortgages. The Columbia professors, who contend their method would cost nothing to U.S. taxpayers, propose the new mortgages would subsist folded into a new round of mortgage-backed securities issued ~ dint of. the government-sponsored finance firms.

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

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

RIGHT-TO-RENT

Some repeat it’s time for the American Dream to include renting a inn as well as owning one. And supporters of this move not present from home ownership are the biggest proponents of a so-called honest-to-rent program.

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

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

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

“CRAMDOWN”

The with equal rea~n-called “cramdown” proposal takes the mortgage dispute to court, allowing struggling homeowners to carry on a suit to a federal judge for lengthened loan terms, interest rate cuts or reductions in mortgage balances by filing for bankruptcy.