Obama’s mortgage approach doubted – (Source: Tulsa World)By KYLE ARNOLD – The former Tulsa banker who was brought in to run Freddie Mac during its financial crisis late last year says mortgage- modification programs won’t rescue the housing market and that problems are likely to mount again. “It’s a classic asset bubble,” said the ex-banker, David Moffett. “We’ve had them before and we’ll have them again.” – iStockAnalyst
————
Why Treasury Needs a Plan B for Mortgages – By GRETCHEN MORGENSON – thanks Ira Artman – … the Treasury Department conceded last week that the Home Affordable Modification Program, its plan to aid troubled homeowners by changing the terms of their mortgages, was a dud. … the program doesn’t account for all of a borrower’s debts — the first mortgage, second lien, credit card debt and automobile payments. … As a result, what may look like an affordable mortgage payment under the Treasury plan quickly becomes onerous when other debt is added. ... – NY Times
————
Congress Is the Drunk at the Fed’s Punch Bowl: Roger Lowenstein – … But here’s the thing. The changes that Congress is urging would make things worse. If anything, the Fed has been too sensitive to public opinion. And in the recent past, it was too eager to satisfy the public with an easy-interest-rate and easy- mortgage policy. … – Bloomberg
————
Bernanke Confirmation? – David Kotok – … Our conclusion: whatever comes out of this Congress will limit the Fed’s powers and transfer some its ability to set an independent monetary policy. That transfer will shift control to the executive branch. That means more of the policy will be made by the President and a very few people around him, like the Treasury Secretary and his chief advisers. … – Cumberland Advisors
————
U.S. cuts estimate of bank bailout costs – Glenn Somerville – The projected long-term cost of the U.S. government’s bailout of the nation’s big banks is going to be at least $200 billion less than previously thought, a Treasury Department official said on Sunday night. – Reuters
————
Why the Fed loves inflation – By Bill Fleckenstein – Chairman Ben Bernanke has some radical ideas about pumping money into the economy to keep prices up. This is no way to kick an economy when it’s down. – MSN Moneycentral