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Subprime Mortgage Meltdown, Alexander housing plan takes fire from right

Posted by James Breen at 1 April 2008 16:59

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Sen. Lamar Alexander (R-Tenn.) is pushing a housing plan that is taking heavy fire from conservatives. Alexander, along with Sens. Kit Bond (R-Mo.) and  Johnny Isakson (R-Ga.), is sponsoring the Security Against Foreclosures and Education Act, which would, among other items, provide a $15,000 tax credit over three years for purchasing a home in or near foreclosure. According to The Hill, a Capitol Hill newspaper, one Senate GOP aide called the tax credit "garbage." More from The Hill: But ..».

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There's no doubt that the U.S. economy is in a downturn. The cost of petroleum has skyrocketed, creating all manner of ripple effects throughout the economy. The "housing bubble" has burst in several cities and the sub-prime mortgage industry has gone bust, leaving many people upside down in their houses or facing — or experiencing — foreclosure. Bear-Stearns sold for pennies on the dollar. And the government is scrambling to at least give the appearance of doing something about all this. .. Keep Reading.

It is just getting started:

The "subprime mortgage" fiasco is being treated as if it is some kind of exotic financial disease heretofore unknown to man. There seems to be a lot of "how could we have known?" going around. But if one looks beneath the specifics and gets to the generalities, one quickly realizes the fiasco is of a type that can be traced far back in history The specifics are different but the generalities are the same. The problem is one of speculation. Speculation is a problem associated with the .. read the rest.

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Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary among states. Note that personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. And unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.


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