Shame the Banks is reporting that the Barack Obama administration is proposing a 30 billion homeowner bailout (or bribe out as I call it), that would require the banks to provide a couple million homeowners who are in "distress" on their home mortgages and even home equity lines some type of mortgage debt forgiveness or reduction.
I can make an educated guess that whatever credit is offered, it will only be offered to those WHO HAVE A JOB! Imagine you have a 100,000 home equity line all tapped out, and the government is willing to drop it to 25,000. Sounds good, right? (or, view Naked Capitalism's take on how far 30 billion will actually go)
So I'm guessing the gotcha will be that one can only get the reduction if they can begin making payments on the remaining 25,000 dollars. Tell that to the 15 MILLION american citizens who caretake for family members with alzheimers and can't be away from home for more than an hour or two.
If there is going to be any kind of mortgage forgiveness, how about giving the unemployed an opportunity to have the mortgage foregiveness put into an escrow account and be tapped in small monthly amounts to make monthly payments on core bills such as water, power, food, and insurance.
What about the UNPAID CAREGIVERS, how will this legislation help them?
What is further disgusting is the TIMING of this proposed solution. It's now been almost TWO YEARS since Barack Obama took credit for HAMP. After tricking nearly a million homeowners into the accelerated loss of their home by following the HAMP guidelines, Barack Obama will now time his "solution" to be in full swing when he is running for re-election.
I think I'd rather see Mr. Obama tried for Federal Hobbs Act Violations, the extortion clause, under the color of right, for his public personal promotion of HAMP, and for possibly instructing HUD to lie about how successful HAMP was, then accept this latest 30 billion dollar homeowner bribing tactic to help get himself re-elected.