DLC "New Democrats" stab the middle class in the back -- again

[brentspeak]

Obama's plan to allow bankruptcy judges to renegotiate troubled mortgages has been http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3766174&mesg_id=3766174">watered-down - considerably - by the New Democrats, let by Ellen Tauscher. As this http://www.huffingtonpost.com/jane-hamsher/mortgage-write-downs-why_b_170773.html">article by Jane Hamsher explains, Tauscher, who was the DLC's point-person in getting the Bankruptcy Bill passed as law, was aided in this latest betrayal by the presence of bank industry lobbyists in her own office.

After all is said and done, Obama's proposed legislation has now been rendered almost useless.

[ananda]

1. So where's the pressure?

This SO sucks!!!

[BobRossi]

2. Scum sucking DLC.

Didn't the VP have a hand in passing the Bankruptcy Bill?

[Deja Q]

7. Yes.

Whether he did it in good faith and pretended the job market was solid and nary a job handed out by American corporations ever left America is a moot point.

[liskddksil]

3. Who is going to primary Tauscher?

This is certainly an acceptable situation, as the District is safely Democratic.

[Sebastian Doyle]

4. Fuck the DLC

Until we reject these lying cowards claims of "centrism" and banish them from our party, we will never restore this country.

[hfojvt]

5. some of that watering down did not sound so bad

"The compromise version, for example, requires that a homeowner share with the lender any profit from the eventual sale of the home if a bankruptcy judge lowers the principal balance. It also gives preference to lowering a homeowner's interest rate over cutting the principal balance.

The compromise also limits homeowners' ability to ask a bankruptcy judge for help if they have already received or been offered a loan modification that lowered their payments to 31 percent of their income."


Those modifications seem reasonable to me.

Hamsher mentions some other things that WaPo didn't mention.

[Lance_Boyle]

17. exactly - watch everyone here line up to scream bloody murder

about what appear to be common-sense measures to improve the bill.

No, you shouldn't be able to get bailed out and then take a profit from it when you sell. Duh. How can anyone here whine about that?

Yes, bankruptcy judges SHOULD give preference to lowering interest rates and extending terms over cramming down the principal on loans. How is that not common frikkin' sense?

And no, you shouldn't be able to get a bankruptcy judge to give you a cramdown WHEN YOUR LENDER HAS ALREADY OFFERED YOU TERMS EQUIVALENT TO OR BETTER THAN WHAT COULD BE EXPECTED IN A CRAMDOWN. Why is it even necessary to write this restriction? Your lender offers you a payment schedule that reduces your monthly payment to 31% or less of income, and you want to refuse it so you can have a bankruptcy judge offer you the same damned terms? Makes no sense at all - just greedy people looking for a bigger handout.

[hfojvt]

21. Hamsher mentioned restricting it to sub-prime loans

and that seemed like a bad idea. Depends though, on how many people are facing foreclosure who did not have sub-prime loans. I am guessing that's quite a few.

[upi402]

6. no surprise here. corporate dems are republicans!

There is NO opposition party to corporatism.

[Deja Q]

8. Why not make one?

"There is NO opposition party to corporatism."

[upi402]

10. I did try to support that

but the system is rigged. Kucinich was our hope and he was not allowed to play in reindeer games. It's better now, but too little - too late. Life will be different here, but not near as bad as it could have been.

[anonymous171]

13. The system isn't rigged. You just have to play it the right way. nt

[upi402]

19. you're right.... purchase it

lol
:wink:

[liskddksil]

9. Plus this: Evan Bayh wants Obama to veto his budget proposal

I guess tax increases for the rich is unacceptable to his DLC / Blue Dog ilk.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x8243592

[bvar22]

11. Don't use the REPUBLICAN Frame.

It is NOT a "Tax Increase".

It IS a "Repeal of the Bush Tax Cuts for The Rich".
The RICH will just go back to "Paying their Fair Share".

[liskddksil]

22. True bad choice of words on my part

[rvablue]

23. So does Feingold. He's not DLC, is he?

edited to add: only President's can veto something. Senator can vote against it.

[anonymous171]

12. I hate New Democrats so much.

They are basically republicans who believe that gay people have rights and that minorities are humans. Other than that they are pure 100% corporate tools.

[Laelth]

26. Well said. n/t

:dem:

-Laelth

[Individualist]

14. Damn the DLC

and their supporters!

[newtothegame]

15. I don't understand the outrage...

The compromise version, for example, requires that a homeowner share with the lender any profit from the eventual sale of the home if a bankruptcy judge lowers the principal balance. It also gives preference to lowering a homeowner's interest rate over cutting the principal balance.

First, I don't understand why the principal needs to be lowered? If this is about keeping people in their homes, lowering the interest rate to make the payment a certain percentage of their income, and extending the terms, accomplishes that. Lowering the principal seems weird; how can you change the price of a house after the fact? Doesn't it make sense that lowering the interest rate would take preference over cutting the principal?

I don't understand the outrage...:shrug:

[Lance_Boyle]

18. Shhhhhhhh! You'll spoil the "righteous outrage" by making sense! n/t

[SpartanDem]

20. Pretty simple

some people the see the word compromise and they start raging. Granted they can't articulate what exactly they don't like, but they know they're pissed that there was compromise.

[Laelth]

25. Here's the source of the outrage.

What if buyer wants (or desparately needs) to get out of the house ... to rent, for example, to save money?

Let's say buyer bought house for $500K and bank loaned $475K. Because of the housing crash, fair market value of house is now $350K, and buyer still owes $450K on the loan. Buyer, when selling the house, has to pay $100K just to give up the house and get out. It's just not possible, and I don't care whether the interest is lowered to 1% and the payments extended over 100 years. Only cramming down the principal (reducing the amount owed to $350K) can get the poor buyer out of the house.

I can't understand people who insist that buyer must pay an extra $100K just to get out of this loan so that he or she can start renting. It was the bank that made the bad decision to loan $475K on a house that's only worth $350K. Why should the unsophisticated buyer be on the hook for the bank's bad decision?

The DLC (or New Democrats, or whatever the corporate pawns are calling themseleves now) have gutted theis bill. Cramming-down the principal is the only solution that really works in most of these cases.


:dem:

-Laelth

[bvar22]

16. Do something about it!

We, The Grassroots LEFT, hold the POWER in our hands.
We can use our collective might and the organizational power of the InterNet Tubes to target a few of the WORST DLC "Centrist" offenders in 2010, we can provide and fund successful alternatives in Democratic Primaries.

Once the "Centrists" realize we are WATCHING, and TAKING NAMES, they will be less likely to sell us out.

http://accountabilitynowpac.com/

"CENTRISM"....for those who are proud to be Half Republican.

I'm ALL Democrat.
We (The Left) agreed to hold our tongues during the campaign, and work our butts off to get "a Democrat" elected, but after November 4th, all bets were off. If you think it is bad NOW, wait until the Centrist Democrats escalate the War in Afghanistan, INCREASE the Defense Budget, and impose Mandatory For Profit Health Insurance.


I am a tireless advocate for PEACE.

I am a tireless advocate for Civil Rights and Equal Protections for ALL....no exceptions.

I am a tireless advocate for Single Payer Universal HealthCare.

I am a tireless advocate for FREE Universal Education at ALL levels.

I am a tireless advocate for Rule of Law, no exceptions for the Elite Class.

I am a tireless advocate for The Constitution.

I am a tireless advocate for The Poor and the Disenfranchised.

I am a tireless advocate for Working Americans and Organized LABOR.

I am a tireless opponent of the MIC.

I am a tireless opponent to the concentration of Wealth & Power into fewer hands.

I am a tireless opponent to Corporate/Republican Influence INSIDE the Democratic Party.


It matters very little to me which political personality occupies the White House.
When they move TOWARD those goals, I will support and applaud them.
When they move AWAY from those goals, I will OPPOSE.

Get MAD.
Get ORGANIZED.
Get RESULTS.

http://accountabilitynowpac.com/

http://www.standupcongress.org/content/index.php

http://www.pdamerica.org/

[Laelth]

24. The DLC has gutted the bill.

It's tragic, but not unexpected.

I hope Obama tries again in a few months.

FDR: "If we can not do this one way, we will do it another, but do it we will."

:dem:

-Laelth