Elizabeth Warren on the Daily Show

OMG.

Part 1


Part 2

Cramdown Legislation Stalling in the Senate

NPR published a story today on the legislation that would allow bankruptcy judges to restructure loans on a borrower's primary residence. The article does a pretty good job of explaining how a loan would be restructured and points out that the bankruptcy judge would use his or her discretion to determine whether a modification was warranted under the circumstances of an individual case. What it doesn't mention, though, is that the legislation that passed in the House would only apply to loans originated prior to this year. The industry criticism, cited at the end of the article, that the legislation would scare lenders and raise interest rates just isn't credible when future (and current!) loans will not be affected. It isn't clear what the real dispute is, and what sort of "compromise" may be in the works for the Senate version.