Obama’s Mortgage Plan is Nice. Now How do We Convince the Banks?

Wed, February 18, 2009

Moms & Politics

President Barack Obama has announced his mortgage plan that is supposed to save people’s homes.

Mortgage modification help is supposedly now on the way, he says. But the bad thing is that we’ve already seen that those getting taxpayer money to bolster the economy don’t feel any obligation to do what government says. So I’m worried that that like investment bankers, institutional bankers still view themselves as Masters of the Universe who believe they know better than everyone, especially a pesky government.

Obama referenced those “big banks that traded in risky mortgages that were too good to be true,” banks that took advantage of home buyers and buyers who borrowed too much. Of course, some buyers did extend themselves too far, but it’s hard to hear that responsibility message with an open mind when it is so clear that home buyers were not the ones that caused this massive house of cards to come crashing down.

Yet we, as consumers, are getting the lecture about accountability. I want these grand plans for restructuring to succeed. But it sure would be nice if the banks and the people who really started us down this road had to share some of our pain and were really taken to the woodshed on the accountability message. That’s not going to happen unless the new administration starts getting tougher with the real culprits.

Barack Obama said that he thinks we can overcome this crisis if we all return to our core values. That’s nice … but it only goes so far unless can get those Masters of the Universe to do the same. And I’m not sure they have any core values other than lining their own pockets with the money they take from ours.

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4 Responses to “Obama’s Mortgage Plan is Nice. Now How do We Convince the Banks?”

  1. Blog Antagonist Says:

    I’m still trying to make sense of all this. Because I’m not an economist, it makes my head spin. But one thing I do know is that in order for this to work, EVERYBODY has to be on board. No more gozillion dollar salaries and lavish lifestyles for some while the rest of America is eating Chef-Boy-Ar-Dee everynight. We all had a hand in this, and it’s going to take all of us to fix it.

  2. anniegirl1138 Says:

    We deserve the lectures. I bought a house in 2003. You should have heard the realtor and the loan orginator spinning the ARM’s and refinancing and the never ending equity well that would be my house. When it sounds too good to be true, it is.

    This is not just a case of banks and investment houses. They didn’t force anyone at gunpoint to invest money they couldn’t afford to lose or buy a house a bit beyond their means because “interest rates are so low and house prices will only continue to grow”. People borrowed against their equity and got themselves into credit card debt all by themselves.

    How do you explain the mortgage bailout to the people who didn’t over-extend? Who are struggling now because other people were greedy or stupid or both?

    This whole thing stinks and it has a bad feel to it. But if it works, good on Obama. Our kids and grandkids and great-grandkids too, probably, are picking up the final tab anyway, so what’s a little more bailout money in the grand scheme?

  3. Jen Says:

    Well, I think the people the truly OVER extended won’t be helped by this plan. Obama has already said that there will be people left out.

    I think it’s going to help the people that are barely getting by, that have maybe lost their job, etc.

  4. Kelley Irish Says:

    For once I have to agree with a country Western Song- “While they’re living it up on Wall Street in that New York City town/Here in the real world they’re shutting Detroit down.” I live here in MIchigan and can attest to that truth! But my favorite lyric is when he talks about wall street crying on tv to justify their HUGE salaries: “Pardon me if I don’t shed a tear/‘Cause they’re selling make-believe and we don’t buy that here.”

    The crisis is really about deregualtion! The oil company made Huge profits and cheated us until people had to choose betweeen gasoline and mortgage payments. Wall street traded paper based on fiction. Banks extended credit at higher rates to make quick cash in the up front fees. Car makers couldn’t compete with imports that are made without clean air standards, and allowed into the country with and tariff relief…
    No one was watching the kids at recess and they had way too much fun!

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