Remember how the home mortgage crisis became the reason the Obama administration wanted to apply $350 billion to, allegedly, provide a financial bailout, rescuing the economy and the suffering homeowners who fell (as the story goes) victim to Wall Street? That represents the second half of TARP that Bush started, and Obama continued in a re-branded form.
Only about 20% of that $700 billion of that ‘stimulus’ money has been spent, and only a fraction of the $785 billion ‘economic stimulus’ package that followed has been spent, creating instead a slush fund that would make Bernie Madoff jealous. But back to the mortgage ‘crisis.’ $75 billion was to be for solving that problem. To date, only a fraction of that has been spent, and what has been spent has gone to . . . Wall Street. Not main street.
The ‘cure rate’ for the troubled mortgages is getting worse, not better. And there are more foreclosures to come. Way more. Now there is another alleged ‘stimulus’ program coming to do what the first stimulus didn’t. They want to give more money to Wall Street.
Somewhere along the line, I missed the part where the administration admitted that what they’ve done has not worked. No, that won’t happen. Doing so would not exactly exude public confidence about the administration’s ability to control health care, almost 20% of the private sector economy. How many times must we hear the President say how saving these homeowners is his top priority before we start laughing at him?
The Market Ticker calls it what it is, a scam.
None? Out of 651,000 “trial” modifications none have turned into a permanent repayment plan?
What’s worse, Bank of America has only 14% of their “eligible” loans in a trial modification. Citibank has 40% under trial, and JP Morgan/Chase 32%.
All in all, only 20% of those “eligible” have been offered, accepted, and are in a trial but zero percent – zero – have actually turned into a permanent loan modification that the homeowner can count on.
The administration program requires banks that received federal aid from the Treasury’s Troubled Asset Relief Program, or TARP, as well as mortgage-finance companies Fannie Mae and Freddie Mac to lower monthly payments for borrowers at “imminent risk” of default.
That’s some “requirement” eh? Zero percent completion from June to October? That’s five months, and the “trial” period is supposedly 90 days, so this means that either (1) nobody did anything for the first two months, or (2) not one borrower successfully completed a trial between June and now.
If the Obama Administration and Treasury was serious about this “help” they would be seeking indictments.
- Administration plans new efforts on foreclosures
- See, HAMP Really Was A Scam
- Bush to Ask for TARP; Obama to ‘Rebrand’ It, Dodd Warns That 8 Million Homes Could Face Foreclosure