Fox News
Expand
Browse All Video
Watch Live

You're watching...

White House pushing for new housing bailout

Details

  • Description

    Regulator resisting the move

  • Duration 7:59
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Area Anderson Peter thank you want to get our panel in on this is an important issue joining me now to discuss -- Fox Business Network anchor Melissa Francis.

Also former communications director for New Jersey senator Jon Corzine -- rigid -- ski.

And Wall Street Journal columnist Simon constable our count thank you all so much for being here.

People pay very close attention -- because it's almost like health care in your home and mortgage issues really affects people at at that the core.

Moral hazard is what we've heard when we talk about bailouts of the people who are underwater on their mortgages because some people.

If you're under water and your underwater -- you take a second job to pay your mortgage and you don't.

Why should she.

Bail you out with your tax.

-- -- dollars well let's goes back tomorrow has for -- all the way back to 2008 we bailed out the big banks.

An argument back then was this is necessary to stabilize the larger economy lot of people -- with the premise but if you followed that premise all the way through its logical conclusion.

People being able to pay their mortgages under any circumstances isn't just extend her house is paid off -- mine -- cents.

And I get evicted out of my house her property values go down to because that's neighborhood play.

And that affects consumer spending that affects a whole range of issues that have everything to do with the larger economy not just.

This very small issue moral hazard which is an important issue but it's affecting.

Not just me not to somebody who can't pay their mortgage but my neighbors the comedian so on and so forth and so that's I think -- -- that.

Make you feel better when you're working a second job.

To pay your mortgage and she's not -- she's not taking a second job so your second job is gonna pay Natalie your -- but it's gonna pay her mortgages hypothetical -- is -- and yeah.

Obviously I think yeah yeah.

A second job -- not only your mortgage but hers is well I mean cynics even say this is vote -- and that the problem is is that this was a problem as you said.

When the big banks when there was the original ballot we're gonna -- -- next we're gonna down -- Moral hazard is always the problem.

When you have a government program and that the problem is the taxpayers on the hook either way.

Because these mortgages are backed by Fannie and Freddie -- spots.

So people default on their mortgage and they don't pay anything but but -- that's our three at a four people who have a Fannie or Freddie backed mortgage.

And have an underwater mortgage current they are making -- Fannie and Freddie mortgage folks they are making their payments.

Well I am and we don't have the details on who's gonna qualify for -- and -- not mean as we heard reported sounds like almost no one is gonna qualify when we're together.

They say there's going to be some sort of need -- to it that you've demonstrated some sort of terrible hardship and that's why.

You need this break -- -- mortgage so they're gonna try and have some way of figuring happier probably it you're right it's -- the details who should qualified who should and who gets the break who doesn't.

Right and and -- it's almost in 08 that I think people who are paying say it it you know.

And who have money you say just because I'm paying and I have money action be penalized and have to not totally benign but pay for the.

I'd -- hey if I I think we should count a ballot business completely.

I'm in a big government involvement in the housing market and government involvement and the private sector with a with a banking system is.

What has been the problem -- And I had to say that if we don't turn that around we don't turn the rest of the economy around all we have to do something they're trying to do something but we'd better if they did nothing.

Com we we will see if they do nothing.

Then we will see on to burden us and speculators commandments map of the house that run them out that will happen that is the American what it is not going to be a vacuum.

If the government does nothing the government doesn't have to do everything for -- but.

But its -- -- you need it so what happened was the sky who oversees Fannie and Freddie is looking out for us supposedly.

Said now we're not doing moral hazard you're gonna -- saddle the taxpayers with this bill that's not fair.

Has you know Fannie Freddie who.

I don't want it wouldn't saddle taxpayers with money so now they -- him an offer he can't refuse by saying we'll take a left over TARP funds that were used to bail out Wall Street.

Take that twenty billion dollars will give that -- any different and there is some appeal -- that -- because.

Main street is saying we use that money to bail out Wall Street orchestras at the heart of the mortgage meltdown and who was at the other piece of the heart it is it was.

Took on the -- he couldn't afford it let's use it as an agreement with a putt of about to -- but I don't believe the Fannie Freddie were the problem.

The problem originally originated with larger banks.

There are securitized in these mortgages the pomp and paddling buying -- -- -- well it's partially yes the people were also having anger is up.

The bankers right now the bankers are peddling these very very very very sketch he's mortgages Saddam played they are.

Florida barely right -- my -- I I know that I -- and I think we hit bottom the bottom of the bottom but let me just there's I thought which is the behind locked in is.

If you're gonna look at the larger banks and -- got bailed out for their bad behavior than yes and I'm not either -- -- -- And that's that's a separate machine about every about the banks something about the banks is -- -- -- and they paid us back.

So we need sort of gave them money and almost all of them they it was almost hard to Fannie and Freddie and you know we're told that it pays back.

Well in a sense that and it has back in the sense that again it's part of a larger economic issue.

If you're not addicted out of your house don't have neighbors can play you know -- -- one -- the lights right now I'd like write down what I want why is it right now is it's part of a larger economy that is smaller woman I thought what why is it.

Won't accept.

-- to accept that that that assets are speculators and people with money out there who go -- buying up houses and rent them to people.

Who who are affected and what -- -- we except that the free market might actually work because -- Please -- -- Florida and Nevada where you have whole neighborhoods that are just bladed that nobody's coming in Italy will -- this is the argument that it Romney -- got summit it gotten so much trouble -- the argument I'm not running my office yeah.

It's going to foreclosure it would heal the housing market more quickly if you went right into foreclosure more quickly than people -- of the houses.

Prices would reset a lower level and how about new couples we're just getting married you can finally afford housing has -- pricing has come down has come down so much.

There's an argument on either side but that is a heartless market solution that is never pop points actually well.

But the you're thinking argument about you know we have to help these people they -- that did mean bankers of course we've heard that question we've heard that from the left we've heard of and I -- -- be the bankers made him do it.

You know they went in there -- day predatory -- deals you couldn't refuge on a Bank of America settle this for countrywide because they were peddling these mortgages to African Americans Hispanics were not just African Americans Hispanics how little whites -- when -- was on the receiving -- and signed a deal and am underwriter of -- right now well only to big -- -- -- -- -- -- when I sat -- with a mortgage -- he -- -- said -- -- The market could change you could wind up screwed and I said.

Perhaps -- yeah.

-- about it and now has not been now I mean I am one of the fortunate ones because I've got some money.

So I can pay it now do I wanna be paying his mortgage -- you know way higher than a house worth I don't.

But not -- bail me out.

That's sort trip on the shouldn't available banks we we shouldn't and I do think -- Fannie Freddie -- a part of the problem.

They created aim and mortgage market's awful long term loans that made it much much easier for the banks to do the secure does session with.

-- -- it wouldn't happen didn't banks and other countries out you in this country we sad that this is the American dream to own a home and increases in value.

Your family lives there forever we made it about me it's not hot.

I won't if I -- this doesn't know what there's an interesting renting an own and that I guess it in the area.

If if this guy signs off between point nine billion dollars through what's left over in TARP that we use develop the banks say okay we use that to bail out the Fannie Freddie mortgage holders.

If he doesn't approve that what happens that's when he billion -- does it go back to -- does it pay down our.

Well -- that I hope so I -- the other proponents use for that -- -- we got something doesn't I don't.

Back to this back to the -- back to us the tax that is -- your -- is that real.

That's should get a guy.

It's in the TARP I that's why it's there now.

I think that directory and -- and that's an interesting you know question right right what's the alternative what else are we gonna spend about I count thank you thank you just think.

Load More