"I don't give the administration much credit on anything, but to their credit they're backing off on the moratorium talk," said Bert Ely, an independent banking analyst. "The real danger here, a serious danger to the economic recovery and a housing recovery, is some blanket, nationwide foreclosure moratorium." Daily Breeze
Thursday, October 14, 2010
Foreclose Your Mouth
There is a crisis in American housing. It has been going on for a few years now. The government tried, foolishly, to try to "help" by giving money to banks. Stupid idea. The banks went on vacations and waited for the market to bounce back. Obviously, that didn't happen and isn't going to happen for awhile.
Many are calling for a moratorium on foreclosures. Remarkably, President Obama is resisting the call, even from his own party, to place a moratorium on home foreclosures.
He shouldn't. The states shouldn't and the country should not. A moratorium would only forestall the problem and make it worse, as it has done.
But, who is calling for a "nationwide moratorium"? California's very own, Maxine Waters. Maxine has done a remarkable job of keeping her constituents in abject poverty for decades and yet manages to get re-elected. Now, Maxine Waters wants to infect the entire nation with her foolishness. If she can't help lift her her own district out of poverty's enslavement, how does she think she can help "nationwide"? If she had a once of sense she would try to ensure that home prices fell so more people could afford to buy a home. She might also consider how she could bring businesses into her area so that her people have better chances at jobs.
The bottom line is that the government does need to monitor fraud but should not stop foreclosures. Remember history will teach us if we let it. Following the great crash in the late 1920's many banks collapsed and MANY people lost their homes. But, the banks could not afford to sit on the homes and wait for the market to rebound. The banks had to resell the homes to people at lower affordable prices. My grandparents went through that. They lived in that home, across the street from the home they originally purchased and lost from 1929 until the late 1980's. The banks made stupid irresponsible loans and they should pay the price for their stupidity and greed. Not that I am opposed to profit, but, if you know a person making $16.00 an hour can not afford a $300,000+ home, shame on you for making up a finance "plan" that would appear to make it work. Banks and lenders should pay the price for their mistake. Not the tax payers.