Obama’s efforts to aid homeowners, boost housing market fall far short of goals

[harvey007]

Source: Washington Post

After watching their homes’ values collapse in recent years, a quarter of all homeowners are “underwater,” owing more than their homes are worth. The president’s housing policy has caused a rift with political allies, such as black and Hispanic groups, whose members have been disproportionately hurt by the crisis.

Read more: http://www.washingtonpost.com/business/economy/obamas-efforts-to-aid-homeowners-boost-housing-market-fall-far-short-of-goals/2011/09/22/gIQAoJdeAM_story.html?hpid=z1

[dkf]

1. He has good intentions but his execution isn't there.

Which isn't actually his fault I guess, but there seems to be something missing in the understanding and incentivizing of the plans.

[DJ13]

2. I think the problem is his belief that the banks shouldnt lose money

The cram down many economists proposed (allowing bankruptcy judges to reduce principle so the home wouldnt be lost) were derailed because the admin never has supported the idea of banks losing money on any transactions.

That same theme seems to be at the heart of why the admin is unable to solve many of our current economic problems.

[Skittles]

3. gotta protect bankers

:mad:

[dkf]

5. Or maybe he didnt want investors, retirees, pension plans, etc to take the hit.

Why do we assume the banks take the hit? They sold a bunch of these loans I am sure.

[Johnson20]

9. Thank you dkf!!!! I get

tied of the meme that only the very wealthy (eg the one-percenters) own stocks and bonds or have investments of any kind.

[sendero]

13. The market rate for mortgages..

.. right now is around 4%. Mortgages have ALWAYS been prepayable, the holder of this paper are NOT ENTITLED to above market rates.

This is the first really good idea Obama has pushed, too bad it will probably go nowhere like everything else he's done.

[Pirate Smile]

8. It couldn't get through Congress.

[shraby]

4. It's called republicans in normal conversation.

[Pirate Smile]

7. To force the banks to do something needs legislation from Congress which wont happen.

Trying to get the banks to do what will help the country and then should help them through that improvement has been useless.

People need to remember that this was the issue that Santelli threw his fit about on CNBC. It wasn't about bailing out the banks. It was about doing something to bail out the people being foreclosed on. That was what his fit was about:

"RICK SANTELLI: The government is promoting bad behavior. Because we certainly don't want to put stimulus forth and give people a whopping $8 or $10 in their check, and think that they ought to save it, and in terms of modifications... I'll tell you what, I have an idea.

You know, the new administration's big on computers and technology-- How about this, President and new administration? Why don't you put up a website to have people vote on the Internet as a referendum to see if we really want to subsidize the losers' mortgages; or would we like to at least buy cars and buy houses in foreclosure and give them to people that might have a chance to actually prosper down the road, and reward people that could carry the water instead of drink the water?

This is America! How many of you people want to pay for your neighbor's mortgage that has an extra bathroom and can't pay their bills? Raise their hand.

(Booing)

President Obama, are you listening?

Helping people who need help gets spun as rewarding the irresponsible and, thereby, punishing the responsible people who managed to keep paying their bills and doing the right thing. Plus, the bank lobbyists are all over Congress about it so, for both reasons, Congress wont touch it.

[bvar22]

10. On the other hand,

this administration's aid to the poor, struggling Wall Street Bankers and the Health Insurance Industry has been very successful.
Gotta give Credit where Credit is Due!



You will know them by their WORKS,
not by their excuses.

Solidarity99!
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[xiamiam]

11. the very first thing he could have done was to reinstate the right for bankruptcy judges to adjust

mortgages to reflect current value..that is the only thing that will stem the foreclosure problem..economists recommend it and it was in place from the depression until 2005...nothing else will work..he keeps coming up with these totally ineffective bullshit plans..no incentive for the banks to do anything...and now...this latest plan is absolutely ridiculous..i mean..ridiculous..government backed loans for underwater properties at more than 125% of their value..while the bottom has yet to be reached...those loans, if anyone qualifies, will soon be 150 to 175% ...who is advising him?

[bvar22]

12. This Administration is going to PROVE that "Trickle Down" works by GAWD...

..if they have to kill every Working Class SOB in the country!


Solidarity99!
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[SoapBox]

6. ...NO thanks to the Banksters, the GOPBaggers and the 1%.

Dirt bags.