Clinton went to Wall Street Wednesday.
NEW YORK (CNNMoney.com) - Senator Hillary Clinton spelled out the details of her subprime bailout plan Wednesday, calling for a 90-day moratorium on foreclosures and a five-year freeze on the interest rates of adjustable rate mortgages (ARMs).
In August, the democratic presidential hopeful asked legislators to ban prepayment penalties on mortgages, but her new plan goes much further, and bears similarities to other proposals, including one expected to be offered by the Bush administration soon.
Clinton had already outlined her proposal in a letter to Paulson on Monday – the letter was posted onto her Web site – but on Wednesday she formally unveiled the comprehensive plan.
– CNNMoney's Les Christie
UPDATE: Former North Carolina Sen. John Edwards unveiled a plan Wednesday that goes further than Clinton's. He is including a mandatory interest rate freeze to last seven years and a moratorium on foreclosures would that would be in place at his discretion.
Wow, sounds a lot like Bush's outline.
As Bill Maher observed on Larry King several months ago, "who would've thought it was a bad idea to give mortgages to people with no money?" Let the dimwit mortgage bankers take their hit, and let the market take care of the people who never should've been approved for homes they never could afford.
Awesome! So those of us responsible enough to know how much house we can afford and didn't over extend ourselves get penalized for thinking things through, and yet the folks who overextend themselves are taken care of yet again. Fantastic. Why don't we just eliminate their loans and give them the houses while we are at?
Or how about we finally make people be responsible for living beyond their means. Maybe we make the financial industry liable for making loans to people who shouldn't have been loaned money in the first place.
Where has responsibility gone in this country?
Lock in your ARM, I mean 5 year fixed/ARM morgage today..
well, at least CNN is finally covering some policy-related items and not just the gossip lives of politicians
Great, let's make everyone that was smart enough to not buy ridiculously over-priced homes with loans they could not afford pay for the idiocy of the others. This is your typical socialist band-aid solution that just ends in more problems. We need to flush this toxic loan crap out of the system not encourage it!! The smart people will end up waiting many more years to buy now because the real estate market will take even longer to correct itself!
If you want a continuation of the Bush Administration – vote for a Republican or Hillary.
If you want change – Obama is your candidate.
Ridiculous!! The government is not bailing these people out. You and I are. Where do you think these billions of bail out $$ come from? The Fed will print more money for the banks. Inflation will go up. The dollar goes down. That means you and I just got robbed because my $100 is now worth $90. Hillary, get your grubby hands out of our bank accounts.
Hey moron this is exactly what Bush has already proposed.....What an idiot
Hillary, someone already beat you to it. Old stuff.s
Its a shame that the government acts as a net for those who made stupid bets on real estate and now find themselves unable to afford their ARM. A dream house is such...a dream that many are unable to afford. If Americans are not smart enough to understand what they can afford, then the government should invest in education. It should not act as a stop gap for bad investments. That type of behavior just encourages future bad investment with the expectation of another government bail out.
Why are her plans always so copy-catish? Can this woman not come up with anything on her own?
What's worse: she's a copy-cat of the worst president in US history.
Yeah, I think I'll vote for her.
I am very ticked-off at a lot of people for bashing Hillary, I'm talking about Democrats, I could care less what Republicans thought about Hillary.
I don't know yet which Deomcrat I will support this election, but it seems to me that Hillary is the only one who has answers and ideas for eveything.
...EVERY SINGLE THING...
You know what Hillary, don't take any crap from anybody...
...you go girl.
Bail out people who were too stupid to read what the bought.
5K for every newborne child, that will help decrease illegal immigration.
Health Care no matter if you like it or not.
Licenses for illegal immigrants, suspect amnesty will follow that.
Experience by osmosis.
I don't think so...........
WHY DO WE BAIL PEOPLE OUT FOR BEING STUPID???
I'm going to be buying my first home soon and its been sickening watching prices skyrocket. Let the market work this out and punish those behaving irresponsibly!
Why are are american's so arrogant, so if the goverment don't come in and help here, you the very smart ones will start leaving on an island where the subprime problems will not affect you right!!!!!
Horrid. Ridiculous. WRONG!
People signed up for these mortgages, read the paper work, were explained the terms, and then made the decision to buy them. Homeowners with ARMS and the investors that backed these loans SHOULD pay the price and lose a lot. If we remove risk from the investing system, then it is as much a scam as everything else in Washington. These people made choices, some of these loans are jumbo loans, homes worth hundred's of thousands of dollars. People with half million dollar homes DO NOT DESERVE A BAIL OUT!
Posted By J Houston, TX : December 5, 2007 4:01 pm
I would expect such a comment from a Texan. Let's see, in Houston you can get a new home for 90,000. I would think it is safe to say that the foreclosure rate there is relatively low. There are many parts of this country that the average home price is a half a million dollars. Coming up with $100,000.00 for a down is next to impossible so it's no wonder many people are in foreclosure due to the "wonder" financing made available. Every person should be able to own a home in the country. How about a bit of compassion for your fellow human being. No doubt you are a republican.
If President Bush and his possey would have regulated these PREDATORY lenders, we woulden't be in this mess.
Thank you President Bush, and to all of you who voted for him. I hope you're not losing your house because of it. I guess you reap what you sow. Maybe that tax cut will help you out, oh wait a minute, you didn't make enough to get a tax cut.
To all of you who didn't vote for Bush and are losing your house, hang in there somehow, help from the Democrats is comming.
Plagiarizing used to get you kicked out of school. Can it get you kicked out of an election??
You know what, while I understand what everyone is saying, we need to bail these people out for the greater good of the US economy. Anyways, would you rather pay for housing and food for millions that could be displaced by foreclosed homes? You guys are starting to sound like a bunch of Republicans.
I love the sheep that log on to comment about their love for Hillary.
"At least Senator Hillary Rodham Clinton wears her own skirt and comes up with a comprehensive plan like this and makes headlines- Bravo!"; "Good, At least she did think of this! I admire her"
You people personify what this country lacks, the ability to think for itself. This plan only hurts you unless you bought more house than you could afford and financed with an adjustable rate that is about to overextend you. But Bravo Hillary for creating a bailout and releasing it to the media. You people are the same folks that bash the war that we are in because too few people thought for themselves about the consequences (including Hillary) before voting. The irony is think, pungeunt, and hilarious. Boy does this country need a change.
Also, Hillary, way to create a plan that looks increasingly similar to that of the hated GW Bush.
Utterly Amazing – NOT! First, pandering to all of the illegal aliens by promising drivers' licenses (and presumably the right to vote) and now all of the subprime loan homeowners! Outrageous! So, if Ms. Rodham is offering taxpayer assistance to those that CHOSE to buy a house that they either couldn't afford or had no business of purchasing in the first place, how about a rebate for all of those paying FIXED interest mortgages???????? I sure would have liked to have paid several thousands of dollars less each year!!!! Come on Hill, how about a rebate for the rest of us? I'll vote for ya!
You people personify what this country lacks, the ability to think for itself. This plan only hurts you unless you bought more house than you could afford and financed with an adjustable rate that is about to overextend you. But Bravo Hillary for creating a bailout and releasing it to the media. You people are the same folks that bash the war that we are in because too few people thought for themselves about the consequences (including Hillary) before voting. The irony is think, pungent, and hilarious. Boy does this country need a change.
If they freeze the mortgage rates for five years, who is going to make up the difference between what it costs the Mortgage companies to borrow that money to lend out, at rates that vary with the market, and those fixed rates, they will be stuck collecting?
It will be added into the new loans made to each of us on our fixed rate mortgages.
What if they freeze the mortgage interest rates for 5 years and interest rates come down during that time? Would the taxpayers then pay the subprime borrowers for the difference?