Is Obama's Foreclosure Crisis Plan A Good One?

United States
January 19, 2009 8:09am CST
Obama has pledged a part of his bailout money to the foreclosure crisis as detailed in this blog post: http://www.foreclosuredeals.com/wp/obama-administration-plans-to-dedicate-half-of-tarp-funds-in-addressing-foreclosure-crisis/ Is that a good plan? What would you do differently if you were the one making the decision on how the money would be spent?
2 responses
@jonesy123 (3950)
• United States
19 Jan 09
Yes, he has been saying that ever since he requested the remaining $350 billion of the financial bailout money to be re-allocated to this. I'm not sure how he wants to proceed. What does he really want to do with that money? Will it be handed out for free? Does he want to give struggling homeowners money to pay their mortgage or to refinance at a lower rate? What about all of those who already lost their homes? What about those who rent but can't pay that anymore? If he gives out money for free, he'll get flack because people who have been cautious about their finances don't want those who didn't be rewarded. If he gives out loans, what's the guarantee that those struggling homeowners won't continue to struggle? What are the chances the government will get the money back? How much of all of that will have to be footed by the taxpayer for years and years to come? They messed up big time with the original bailout package. They should have given the money to the people, not the banks who now sit pretty. If he now gives money to the people, most will sit pretty, too, and not spend it. That boat has been missed.
1 person likes this
• United States
20 Jan 09
I absolutely agree that the banks should not have got the money from the last bailout. My wife would agree with you on the second point, that people won't spend the money. I'm not sure that I do agree. The reason people didn't spend the money on the last bailout is because Bush and Cheney have no personal power in people's minds. People took the money and held it due to insecurity about the future. Barack Obama has some power of persuasion over at least half the population. I believe there are people who would spend the money if he asked them to. The current feeling right now is that we are on to something good. I don't think most people want to screw around with that. They'll follow his lead because they'll ask, "What's the alternative?"
@jonesy123 (3950)
• United States
20 Jan 09
"Barack Obama has some power of persuasion over at least half the population. I believe there are people who would spend the money if he asked them to." Now that is a scary thought. Sounds like mind control;) Obama has been elected to serve us not the other way around. If what you say is true.... If people have no will of their own but will blindly trust his judgement, then God help America!
@jonesy123 (3950)
• United States
20 Jan 09
Oh, and the last time people got a stimulus check they didn't spend it because at the time they received it gas prices had started to skyrocket and people were uncertain what was going to happen. That's also when the mortgage crisis started to hit us with banks starting to call for help. Nothing to do with mind control and persuasive powers;)
• United States
19 Jan 09
Who is left to help? Millions of people have already lost their homes. Too little too late. Why should the people left get a bail out on their houses? What makes them more deserving than the people that got hit by this crisis in the past three years? We can not afford these bail outs. Our national debt is sky rocketing at a scarey pace. Who is going to pay it all back? Who is going to balance this budget and get us back on ecomonic stable ground? You can not spend yourself into fiscal stability. You do it by paying off your debt not by creating new ones. I wish our elected officials would figure that out.
1 person likes this
• United States
20 Jan 09
I've never felt that it was the government's responsibility to bail people out of their own financial crises. The thinking behind such government assistance programs is that people losing their homes and businesses is bad for the economy and therefore hurtful to everyone. It's a true statement, but that's the risk you run in a free market economy. People make bad decisions and lose their homes and businesses. Make better decisions and we all benefit.