This plan still amazes me and by the way, when you have to force somebody to do something they don’t want to do, doesn’t that kind of tell you something? Like maybe they shouldn’t be doing it for starters…

Here is a link to Hope for Homeowners and a link to a updated list is on the page.

http://portal.hud.gov/portal/page?_pageid=73,7605762&_dad=portal&_schema=PORTAL

Seems more like Hopium for Homeowners to me.

White House tells banks getting federal aid to quit hoarding money and start lending it

WASHINGTON (AP) — An impatient White House served notice Tuesday on banks and other financial companies receiving billions of dollars in federal help to quit hoarding the money and start making more loans.

“What we’re trying to do is get banks to do what they are supposed to do, which is support the system that we have in America. And banks exist to lend money,” White House press secretary Dana Perino said.

Though there are limits on how much Washington can pressure banks, she noted that banks are regulated by the federal government.

“They will be watching very closely, and they’re working with the banks,” she said.

Looks like at best we get stag nation. Maybe a lot worse. And I suspect that after the elections, there will be talk of all kinds regarding taxations, fees, etc…needing to be “re-examined”. And perhaps the IRS will be getting it’s teeth back? I think so. 2009 is going to be one ugly year from all points of view. IMO.

One day the people of this country will wake up and realize that the land their forefathers had fought and died for will be completely owned and controlled by the government that was set up to prevent this from happening.

The Japanese scenario can only work for the US if the whole world suddenly decides to credit us even more at their own disadvantage, because there aren’t internal savings to do the zombification. I don’t see a reason for that to happen.

Something tells me that after some attempts of stabilization, the system will hit the wall in the Treasuries market.

you said:
“Peter, that sums it up quite nicely. In fact the only reason Paulson and Bernanke didn’t do what they said they would do originally (buy up the banks bad paper) is because instantly thousands of banks would have become insolvent.”

I don’t think that is the only reason. It would change from “the bank foreclosed on my house” to “the government foreclosed on my house” I don’t think the government was prepared for that.

The other option was to sell the paper to yet a third party, immediately discounting the paper. This would expose the lie that taxpayers could actually make money on the deal. This way the government is able to hide the lie within the banking system.

As to new home construction after the 1990 S&L fiasco from Wikipedia:

“The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990–1991 economic recession. Between 1982 and 1991, the number of new homes constructed per year dropped from 1.8 million to 1 million, the lowest rate since World War II. [2]“

The banks want to tighten and only make good loans and the government wants credit to keep flowing at any cost. I think we can call this situation Stag Nation.