Why the Foreclosure Crisis Won’t Go Away

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.

Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.