The well researched effort out of the democratic caucus of the Senate Judiciary Committee to finally do something about the crazy primacy given to mortgage debt was defeated by ... Senate Democrats.{!!!)
Time of death, 2:47 p.m., April 30th.
Here are the Senate's Dems voting against changing the bankruptcy code and preventing millions of foreclosures, possibly (list below).
There is still no stick out there to go along with carrots.
Put another way, Obama-Biden are now "all in" on the voluntary plans to mitigate foreclosures put forward by Shelia Bair, which are schema that are NOT tested, wholly, even if they have informed judgments behind them.There is still no stick out there to go along with carrots. And, if you know anything about lender behavior and the market failure of 'moral hazard', you understand why that could yet be a serious problem...
Baucus (D-MT)
Bennet (D-CO)
Byrd (D-WV)
Carper (D-DE)
Dorgan (D-ND)
Johnson (D-SD)
Landrieu (D-LA)
Lincoln (D-AR)
Nelson (D-NE)
Pryor (D-AR)
Specter (D-PA)
Tester (D-MT)
Update, Reuters: "Trade groups representing all quarters of the financial services industry pressed lawmakers to reject the measure and their warnings about the harmful impact of "cramdown" seem to have swayed many Democrats. Two more Democrats voted against the measure on Thursday than when the issue was first defeated in the Senate twelve months ago."
