Why the Foreclosure Crisis Won't Go Away

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Ben Cohen
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By Ben Cohen

Robert Scheer explains:

Aside from a tight mortgage market, the
problem in preventing foreclosures has to do with homeowners losing
their jobs. Here again the administration, continuing the Bush
strategy, is working the wrong end of the problem. Although President
Obama was wise enough to at least launch a job stimulus program, a far
greater amount of federal funding benefits Wall Street as opposed to
Main Street.

State and local governments have been
forced into draconian budget cuts, firing workers who are among the
most reliable in making their mortgage payments—when they have jobs.
Yet the Obama administration won’t spend even a small fraction of what
it has wasted on the banks to cover state shortfalls.

California couldn’t get the White House
to guarantee $5.5 billion in short-term notes to avert severe cuts in
state and local payrolls, from prison guards to schoolteachers. Compare
that with the $50 billion already given to Citigroup, plus an
astounding $300 billion to guarantee that institution’s toxic assets.
Citigroup benefits from being a bank “too big to fail,” although
through its irresponsible actions to get that large it did as much as
any company to cause this mess.