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CitiBank Booms, Mortgages Crash

For those of you who still wonder which team Obama plays for…

By their fruits ye shall know them!

And who better to keep score than the Wall Street Journal?

"Citigroup shares are up more than 70% in the past four weeks. That isn’t a typo. More to the point, the market isn’t making a mistake."

Meanwhile, what’s happening with the rest of us? Since I recently started spending a few minutes every day with the WSJ, I can give all you blog-addled lefties the inside scoop!

Homeowners who fall behind on their mortgage payments have become much less likely to catch up again, a new study showed. The report from Fitch Ratings Ltd., a credit rating firm, focuses on a plunge in the "cure rate" for mortgages that were packaged into securities for sale to investors.

Fitch found that the cure rate for prime loans dropped to 6.6% as of July from an average of 45% for the years 2000 through 2006. For Alt-A loans — a category between prime and subprime that typically involves borrowers who don’t fully document their income or assets — the cure rate has fallen to 4.3% from 30.2%. For subprime, the rate has declined to 5.3% from 19.4%.

Ouch! Lots and lots of people can’t pay their mortgages now, and won’t ever catch up!

So why isn’t that bad news for the banks, which are glutted with "assets" whose value depends on all those hopeless mortgages?

Not to worry!

The federal government, meaning you, me, and our great-great-great-great grandchildren are covering all those mortgages to the tune of $23.7 trillion, and…

Citigroup’s guarantees are among $23.7 trillion of total potential government support stemming from programs set up since 2007 to ease the financial crisis, according to a report last month by (Special Treasury Department Inspector General Neil) Barofsky’s office.

So with all those humongous guarantees which are riotously inflating the stock-prices of CitiBank and its many criminal playmates, wouldn’t you think that Obama and his playmates could have done a little something more than a very little something for millions of Americans with hopeless mortgages?

But they haven’t, they didn’t, and they won’t.

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Jacob Freeze

Jacob Freeze

I'm a painter and photographer who supplements his meager income by hurling rotten fruit and screaming "Welcome to the Bu!" at the Humvees of hedge-fund managers and their nightmare spawn who get stuck in the ridiculously narrow drive-through at McDonald's in Malibu. They inevitably poop their pants and abandon the vehicle, which I subsequently strip and sell for parts, and that is how I can afford to live in Malibu.