Wealth distribution ante raised, Obama administration proposes mortgage distribution scheme.
In a world that is progressively getting crazier by each day and the facade that is the American "recovery" peels away news like this no longer surprises, but instills a lot of hostility. Wall Street Journal reports that the Obama administration is seeking to strike a "mortgage deal". More specifically, Obama in his infinite wisdom will now mandate banks (most of which are technically insolvent) to pay out 20 Billion dollars to underwater mortgages. So good news for those individuals whose mortgages are now less than the actual value of the home, a gift is coming! Terms of the administration's proposal include a commitment from mortgage servicers to reduce the loan balances of troubled borrowers who owe more than their homes are worth, people familiar with the matter said. The cost of those writedowns won't be borne by investors who purchased mortgage-backed securities, these people said. If a unified settlement can be reached, some state attorneys g