Friday, May 1, 2009

Cram Downs...Not so much

It looks like "the great hope" has suffered his first defeat. The senate shot down the Cram Down legislation that would have given bankruptcy judges the power to write down the loan amounts for people in bankruptcy. This was one of the key features of the Obama plan that was announced a couple of months ago. The vote wasn't even close

3 comments:

Kane said...

I'm not surprised ... and that's a good thing. As it is, a bankruptcy isn't even that ugly of a word nowadays ... can you imagine how much more irresponsible folks are going to be if they can so easily write down their biggest asset (and debt) simply because they're "over their heads"?

I still place blame on the lenders ... a few years ago, there were some which even loaned to folks "1 day out of bankruptcy". Nothing says good business sense like loaning several hundred thousand to someone who just proclaimed "I don't pay my debts!".

who me? said...

I'm a bleeding heart liberal and a big Obama supporter, and I didn't even like that idea. People (lenders and borrowers alike)need to be held accountable for the decisions they make.

Of course, I also moved to Corona 5 years ago thinking that I would never be able to afford a house and so have a personal investment in prices dropping to the level that someone who makes $75k can actually afford a basic 3/2 home.

Sara said...

That's good. It's about time.
For the past 6 months they killed us with their "hope" and hypocrisy
--acting caring and angelic with our tax money. Give me a break.