Sunday, December 12, 2010
They've tried to heal the economy from the top down and it didn't work: Banks did not dispose of their toxic crap, they took TARP money and didn't help homeowners. They are in a big rush to foreclose and resell at a loss so they can charge The Taxpayers for the losses before the ether wears off. Why are The Taxpayers helping the Banks? Maybe The Taxpayers should help The Taxpayers: Start from the bottom up, despite all the opposition to helping underwater borrowers. Because they didn't cause the housing market to drop, on the contrary, they were part of the rise higher. Look, there are parts of historic West Palm Beach, FL 33405 that have lost 25% of their value in 2010 alone! On top of the 40% drop from 2007-2009. The number of strategic defaults can only rise in the future, so why not some TARP money for homeowners? If the TARP money for the banks was to cure their RMBS problems, then why didn't it flow (in reverse) all the way down to the homeowner? (Maybe because the bankers couldn't pay bonuses that way?). What is SunTrust doing with the $5 Billion it still has from TARP? As painful as it is for most of you to give money to underwater borrowers, these are better people than The Banksters. Start at the bottom. They will spend money again at Home Depot & Lowes, who will hire more workers. Many independent contractors and small businesses rely on the home improvement sector, can you imagine the "upward- cascading effect" this money flow would produce? Painful as it is, Mr. Responsible, whatever business you are in, it would benefit from this plan. Defaulting homeowners, if cured, would put money into the economy FASTER than The Bankers. Ouch. P.S.- This can be done without the "help" of The Courts, think FNMA & FreddieMac.