The Securities and Exchange Commission isn’t done sorting through the mortgage mess, and has launched inquiries with Wells Fargo and Goldman Sachs over mortgage-backed securities they peddled to investors.
Here’s one way to make the mortgage mess work for you: According to The Wall Street Journal, the slowdown in foreclosures due to questions about paperwork, note-holders and robo-signers has allowed some homeowners to live mortgage-free for several months; some are even renting out their homes. The Journal estimates that the “stealth stimulus” gives these homeowners a “subsidy” of about $2.6 billion a month.
So, Congress finally passed the bailout bill. You know about the Treasury’s newfound $700 billion, and you’ve heard about the snipped golden parachutes, but what does the 451-page week-old shotgun savior of a bill actually mean for you?