Congress has gifted over $700 BILLION to the banks to save themselves and help homeowners avoid foreclosure. So is it working? Obama says not yet and he's going to name names of the banks who are dragging their feet!
Heavens, we are not complaining about a promise of hundreds of Billions in TARP money going to banks to help homeowners avoid foreclosure and modify their mortgages right now! These funds are sorely needed to stop this train now wrecking many American homes. Recent New York Times articles describe in horrific detail the problems with the HAMP and Making Home Affordable programs so touted by Fannie Mae and Freddie Mac as the be all and end all.
NY Times: December 1: Treasury Pushes Banks to Modify Loans
Meanwhile, The TARP Congressional Oversight Chairman, Elizabeth Warren, has been keenly advocating for accountability on the use of our tax dollars. She and her Harvard team have a pretty big job and the fact is the banks are not telling yet because they have not been forced to!
Watch this fascinating New Yorker interview with Professor Warren as she explains why the 'tricks and traps' model of banking must come to an end if we are to survive the shift in our economy. Warren is spearheading a new Consumer Finance Protection Agency, whose charge is to be the champion and watchdog for consumers and keep taps on banking instruments
She boils down the jargon and muses on how the American family has been abused by this economic crisis. Since most people can't figure out the difference between loan and credit products it stands to reason there is no real ability to make wise choices. The knowledge to choose appropriate credit and investment vehicles is key to helping people recover from the ravages of job and equity losses.
Restoring our faith in lenders could take a while! Remember the good old days when Banks and Building and Loans were seen as a means for individuals to pool their resources and grow their communities for the common good? Remember the old Frank Capra Christmas movie: It's a Wonderful life? I watch that movie very year. I never fail to cry with joy at the end. Jimmy Stewart as the beloved country banker who is rescued from financial ruin as his community comes forward to save him in gratitude for his generosity...and all is well.
Wouldn't that be wonderful? Loannetter