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February 20th, 2009
09:45 PM ET

Live Blog from the Anchor Desk 2/20/09

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Filed under: Live Blog • T1
soundoff (569 Responses)
  1. Mike Zimmerman

    Why isn't there a plan to split existing mortgages into two pieces? There could be a performing piece that has to be serviced to stay in the home with a market or slightly below market rate of interest. The remaining balance would be a non performing second that would accrue interest at a nominal rate (i.e. 2%) that would only be due upon the sale or refinance of the property. This would have the benefit of stablizing markets by reducing the number of foreclosures dumped onto the market and at the same time does not provide an unfair windfall to those that should not have taken on so much debt. It would also provide the opportunity for the lender (i.e. government) to recover some of the housing bailout cost,

    February 20, 2009 at 10:54 pm |
  2. Glen Up North

    Barbara, I think about the Law of Attraction every day. The thing is, many people will ask: "Well, how did everything fall when everyone expected house values and profits to rise?" It all comes down to how we feel about it. How many people are nervous when they risk money? That is attracting fearful situations... I'll keep it short: that is why I am glad that, up until now, Obama chose "hope over fear". And I hope he continues to choose hope over fear.

    February 20, 2009 at 10:54 pm |
  3. Avik Ghosh

    EMPLOYMENT HOSTAGE! My company is completely empty on cash flow and can not make payroll. They are late on paychecks and can't even lay off people because they don't have the cash required for final payments involved with employment termination. As a result, they have not paid anyone for over a week and we're all sitting "hostage" with no money and no ability to file for unemployment since we are still employed. Furthermore, I was notified as being a "valued employee" and will not be laid off "until the end" (whenever that is). Normally this would be ok, but without a paycheck, I can't make mortgage payments...This "valued employee" status is a curse, not a blessing. If I quit, they owe me over $16,000 in benefits and salary payout at the time I leave which I will to help pay mortgage if I can't find a job for the next few months, but I know I won't ever see that cash. Could I still apply for unemployment if I quit? Any suggestions?

    February 20, 2009 at 10:54 pm |
  4. robert

    second; why isnt the 30-50K that banks save from keeping mortgages paying not passed on to the borrowers? reducing the balances by the bank savings amount (30K over time of the median home price of 200K ) would allow many to be affordable.

    February 20, 2009 at 10:54 pm |
  5. Ann Estay

    We have a very sertious problem! Regarding help to stop foreclosures, all of the solutions mentioned up to now are "round holes" and we are a square peg!

    We built 2 spec houses with ALL of our money and since they haven't sold we are nearing,or in foreclosure because we have run out of all credit,funds,etc. We are 79 and 66 and we did play by the rules, we had no idea that the bottom was going to fall out of the housing market . Our houses (high end) were ready for sale aprox. 1 WEEK before the housing debacle. We paid workers and supplies,etc. and now are on the brink of loosing everything! There needs to be legislation or something that takes into account some of us "square pegs" , not everyone is at fault for their situation because of "misbehavior!
    Ann from Idaho

    February 20, 2009 at 10:54 pm |
  6. Deborah

    I am sick and tired of hearing from people who are lucky enough to still have a job that allows them to pay their mortgage.I was not being irresponsible when I bought my home and a few months later was layed off from my $80,000 per year job. For all those folks that think most of us who are in mortgage trouble brought it on ourselves, please give me your job and I will be happy to pay my mortgage.

    February 20, 2009 at 10:54 pm |
  7. angela

    So the guys on Wall Street have money to buy sex, that makes me feel better, very comforting to know its not quite as bad as we thought out there.

    February 20, 2009 at 10:54 pm |
  8. Tom K Frankfort, NY

    We bailed out banks who made irresponsible loans; much of their
    debt was covered with federal money in order to reinforce the financial
    system. Foreclosure relief is a similar effort to reinforce the housing market. In both cases there were those who acted irresponsibly who will benefit as part of a larger effort to mend an important element of our economy. If a ship is sinking politics does not enter into a resuce
    effort.

    February 20, 2009 at 10:54 pm |
  9. Jo Ann, North Royalton, Ohio

    When you hear Barry White you know what's going on!

    February 20, 2009 at 10:54 pm |
  10. Dodie from Irvine, CA

    Fay – California

    (((Solution))) Look at 2008, 2007 and 2006 Tax returns!

    The taxes will paint a ‘portrait’ of the person’s financial capability.

    The way to determine whether someone lived over their means and bought a house they could not afford and one who was responsible and now lost their job is by looking at the last 3 years taxes including this year.

    February 20, 2009 at 10:54 pm |
  11. Maureen T, Canada

    The late Barry White's music is great mood music! 🙂

    February 20, 2009 at 10:54 pm |
  12. chuck - st. louis

    Less sex in the recession? Guess people are tired of getting.... Well, you know the rest.

    February 20, 2009 at 10:54 pm |
  13. Carrie Bradshaw

    Go to the Library and get some good books. It is free. What could be better than free books?

    February 20, 2009 at 10:53 pm |
  14. Yvan Grenier

    Why pay for others mortgage ? 'cause if you don't, the neibourhood goes for foreclosure and even if you paid your mortgage on time, your house has no value anymore.

    ...

    February 20, 2009 at 10:53 pm |
  15. Gary - Glendale, AZ

    All –

    I enjoyed this quote from a former banker, “I never made a bad loan, but I did make loans that eventually went bad.”

    February 20, 2009 at 10:53 pm |
  16. Megan Dresslar - Shoreline, Wa

    Good night Anderson, Erica, David G, EJ, Glen, Minou, Pati, Isabel and best bloggers!!!
    Have a great night and Sleep tight everyone!!!! 😀
    Have a great weekend! See you on Monday night!

    Anderson,
    Have a great sleep at home after work, Have a good time weekend....
    See you on Monday!!! 😀

    February 20, 2009 at 10:53 pm |
  17. Linda

    I have a question for Clark Howard. What advice to you have for how to handle our 401K monies right now? If we have those monies diversified but have lost money, should we just stand our ground in hopes it will come back or move those monies to one of the 'stable' low interest investments in the 401K?

    Woodstock, GA.

    February 20, 2009 at 10:53 pm |
  18. cynthia

    Oboma's howe mortgage bailout is so frustrating. I worked my way through college. I have worked hard all my life. I have not purchased new expensive cars. I do not own a big falt screen TV. I have lived within my means. Why should peolpe like me have to pay for other people's homes.

    February 20, 2009 at 10:53 pm |
  19. Ayelet

    I understand peoples anger regarding bailing out irresponsible folks. Many of us are not irresponsible but were given loans that we were told we could afford. I am a first time home buyer and thought I was doing the right thing. We did not have a crystal ball and thought the market was headed up, as it had been. I don't deny that there were many irresponsible people who took loans, but I resent the fact that all of us who need assistance are placed in the category of irresponsible. I have been very responsible my entire life. I hope that those who are resentful never fall on difficult day. But if they do, I'm sure they will need a helping hand, not because they are irriesponsible, but because they are human.

    February 20, 2009 at 10:53 pm |
  20. chuck - st. louis

    This whole mortgage thing is a bad pill to swallow. I'd like to see how Clark would determine the idiots from the rest of us.

    Let's be holier than thou and let those people that overbought go down the toilet, only rescuing the people we determine deserve it. Then let's all set around and watch the crisis worsen. Boy, that'll teach those morons!

    February 20, 2009 at 10:53 pm |
  21. Sister Kat

    Hi Anderson, please know that Citi raised my APR on credit card from 7.99 to 14.99%. Citi also calls my home and work harassing me for my mortgage and I am still in the grace period. When I paid online, Citi took wihtout my permission 10 fee because I paid too early. I am working on cutting all ties with any creditor related to Citi. I found a credit card transfer at 5.86% duration of transfer. Bye-bye Citi credit card

    February 20, 2009 at 10:53 pm |
  22. Greg -

    Hey Lynn D –

    Nationalize BAC, and you and all other stock holders loose it all... simple as that. The equity the stockholders have in the company is lost... and the facts are, that the majority of the stock is owned by everyday Americans... not just bankers.

    February 20, 2009 at 10:53 pm |
  23. Isabel, Brazil

    People can't let the crisis affect their sex lives.
    This is a unique moment of relaxation and may even help.
    Fri, provided that insurance does not generate spending.

    February 20, 2009 at 10:53 pm |
  24. Tom P.

    I am a disabled veteran who has already lost my home to foreclosure due to overwhelming medical bill and the suffering economy and market. Where is the relief for all of the hundreds of thousands of people who have already lost their homes due to no fault of their own? This package only helps the people who haven't lost their homes yet and that is really not fair.

    February 20, 2009 at 10:52 pm |
  25. Miranda

    Team.

    Blogger's.

    Anderson.

    As always it has been fun, my favorite part won't happen tonight Anderson your good night greeting because you will make the transition to The Money Summit, so have a great weekend one and all I know I will.

    Miranda

    February 20, 2009 at 10:52 pm |
  26. Bethany-MI

    Lance, I agree. I feel a little lost in all this financial and economic mess...I'm accumulating more debt each semester as a college student. Would like to hear more advice aimed at students who have no choice but to be in debt.

    February 20, 2009 at 10:52 pm |
  27. Jen

    Don't people have to take responsibility as voters, not just taxpayers and mortgage payers? People need to take responsibility for supporting politicians and policies as voters that have lead to the economic collapse. If they supported deregulating, totally free market supporting candidates they helped bring what happened. The tax cut loving voters who contributed to this US practice of being able to write off your mortgage also share responsibility for adding to the US housing crisis. This situation is a product of lots of bad decisions, and it's not enough to just think of yourself as a taxpayer (not a voter) and say "that's my tax money! I pay my mortgage!". And if it is important to the country to help some people out, there is no point whining you don't want to helpe them.

    February 20, 2009 at 10:52 pm |
  28. Ted

    Most well run community banks have managed their risk, and their boards haven't approved multimillion dollar bonuses. They deserve to be specifically separated from the medias generalities regarding "banks".

    February 20, 2009 at 10:52 pm |
  29. Roger Hall

    What if the banks extended the mortgage from 30 to 40 years to lower payments. Is that a possible solution.

    February 20, 2009 at 10:52 pm |
  30. David Gergen

    Hello one last time tonight...

    To Barbara in Boston - yes, TARP was intended to buy the bad or toxic assets of banks, but the Bush admin and now the Obama admin has had a hard time figuring out what price should be paid for them. Devilishly complicated.

    To Lori and Bridget - agree with you, things are moving so fast that it is hard to figure out whether we are doing the right things as a country. That's why President Obama's speech to the country and Congress this coming Tuesday is so important - to help bring things (and us) together. Next Thursday, he will unveil his first budget and, I hope, will get a much clearer picture of how much all this effort is costing and where the administration things we will come out. Big week ahead. Thanks again for joining in here.

    February 20, 2009 at 10:52 pm |
  31. David, Indiana

    Forcing thru foreclosures? Can banks do that if they're getting TARP funds?

    I think the economy is in a mayday sort of situation, P. Obama is acting, Bush was thinking about going in this direction to, in fact he did with the first part of the bank bailout.

    Erica, if I click on the link before the show begins, it's hard to get the webcast.

    February 20, 2009 at 10:52 pm |
  32. Glen Up North

    Niwat, your comment inspires me to state that banks should be straightforward as to how the previous TARP funds helped them and how they were used before they get more. Will they co-operate if asked, however? With the economy in its current state and Obama's repeated message to act _now_, they may feel they can play a little hardball... or avoid the government's questions. I hope they co-operate if asked. 😦

    February 20, 2009 at 10:52 pm |
  33. David, NY

    No sex will lead with more and more stress. People are going to go insane with so much problems and no pleasure.

    February 20, 2009 at 10:52 pm |
  34. Bea

    Let me, on behalf of all bloggers here, answer your unstated question Anderson. NO, we are not discussing our sex lives with you.

    February 20, 2009 at 10:52 pm |
  35. Michelle

    Lori you have a valid point. The media
    is also trying to get the public angry with
    the rhetoric that is used daily on CNN.

    February 20, 2009 at 10:52 pm |
  36. Monika

    Anderson,

    14 banks going bust is no big deal. There are a gazillion other banks which are doing just fine because their CEOs were less greedy.

    Now the economic situation affecting people’s sex life negatively, now that’s newsworthy! LOL Glad you jumped onto that important story. LOL

    February 20, 2009 at 10:51 pm |
  37. Jasmine-Spokane,WA

    I'm sorry, but sex is something you can't give up. Use stress to make it better!

    February 20, 2009 at 10:51 pm |
  38. Amy Toro

    Instead of having different tax rules for home owners and businesses,

    It would be fair if homeowners could deduct their home/mortgage expense in full as a business does.

    Also, businesses that refinance their mortgage and pull out the profits as a loan, should be taxed as a capital gains tax or a refinance tax.

    Homeowners can't do this, they can only deduct the interest expense.

    The business gets to use the profits for free.. Unfair.

    Let homeowners have the same deductions as the business does.

    thanks

    amy

    February 20, 2009 at 10:51 pm |
  39. Esma

    The banks trying to foreclose as many homes as they can is mind numbing. What exactly are they planning on doing with all of those empty homes?

    February 20, 2009 at 10:51 pm |
  40. Shari Roberts

    I don't have a mortgage, as I sold my home as part of a divorce negotiation. Now that I am retired, I was counting on proceeds of my 401K to pay my apartment rent, but it is disappearing. Who will bail me out so I can continue to pay my rent?

    February 20, 2009 at 10:51 pm |
  41. Dodie from Irvine, CA

    @ Lori from IL

    The only person that can ((make)) you angry is yourself. No one has the power over your feelings...

    February 20, 2009 at 10:51 pm |
  42. Theresa Morrison

    I know someone who works for JP Morgan Chase is using the stimulus package $ passed by the Bush administration to pay their attorneys to process as many foreclosures as possible rather than help those being foreclosed on.

    February 20, 2009 at 10:50 pm |
  43. John Bartlett

    Anderson,

    I do not even own a home but make 60,000 dollars a year. Why should i have to bail anyone out because I pay alt of taxes with no benifit and at this economy I will never be able to afford a down payment . Where is my bail out?

    John

    February 20, 2009 at 10:50 pm |
  44. Theresa Morrison

    I know someone who works for JP Morgan Chase is using the stimulus package $ passed by the Bush administration to pay their attorneys to process as many foreclosures as possible rather than help those being foreclosed on.

    February 20, 2009 at 10:50 pm |
  45. Ken from Michigan

    We have great credit and have never been late on our mortgage or any other bill. Built a house in '07 and paid $405,000, currently owe $353,000. Want to re-fi but are told home is now only worth $340,000. We are currently at 6.125% and can qualify for 5.000% or lower; which could save us $250 per month. This is the plan I've been waiting for....

    February 20, 2009 at 10:49 pm |
  46. Johnny

    Hi Anderson,

    Got one for Clark. How is it me and my wife have made it just fine without a credit card over the years while so many who have them can't seem to handle it?

    February 20, 2009 at 10:49 pm |
  47. Rikki, Fargo, ND

    Brandi...haha! Though I think my favorite bit is that it seems every time he brings up the story he appears to be fighting off a bit of a smirk...

    February 20, 2009 at 10:49 pm |
  48. Stephen Graziano

    Why don`t they lower the Mortgage rates for all of us equally. That will induce buying of homes ,and there would be a rush of refi`s. People would be able to save money and also spend more too . This would start to push the economic wheel rolling once again.

    February 20, 2009 at 10:49 pm |
  49. Glen Up North

    Jen, there is another factor that seems to contribute to the US's financial woes at this time. Reading news media extensively this week, I came across a clip that stated the US had intentionally been in a trade deficit with certain other countries abroad so that they could build up reserves. "Trade deficit" basically means the US exported less to that country than they exported to the US. Those countries, apparently, are now saving those surpluses as a "cushion" should their economy falter.

    February 20, 2009 at 10:49 pm |
  50. John

    Nationalization of a well capitalized bank such a Bank of America is absurd! This continued hype by the media only continues to build the nervousness of clients, investors and the private sector. Please do some research and you will see BAC can survive for up to 2 yrs at it's current pace and revenue. Stop blaming Ken Lewis and focus on the fact that had BAC not purchased Merrill and Countrywide there would have been a real possibility of a depression and affluent Americans would have lost most if not all of their wealth and the mortgage industry would have completely collapsed.

    February 20, 2009 at 10:49 pm |
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