Has the Treasury Secretary lied to the people in need of a bailout?
You decide.
November 12, 2008
In a statement made on national television the The Treasury Secretary, Hank Paulson, claims “ I believe we have taken the necessary steps to prevent a broad systemic event. Both at home and around the world we have already seen signs of improvement“. Have you seen or felt the improvement?. Just days before every major financial agency was scrambling and announcing major measures to streamline the Loan Modification process.
With unemployment rising at levels not seen since the great depression, and with the major automakers at the brink of bankruptcy, the Treasury Secretary has decided that the focus needs to be shifted into the consumer loans, IE. Credit Card loans, instead of the previous focus of fixing the mortgage market.
What does this mean to you?
Simply put, load up your credit cards, get into more debt and forget about ever repaying anything. Hopefully you will be able to declare bankruptcy, wipe out your debt that is not secured by your home and ruin your credit. Not a solution in my book but a good way to get more money out of the tax payer and pour salt on an open wound. Secretary Paulson made it clear that he does not have to apologize to anybody because has the ability to change policies as he sees fit.
Now the really good news
In the last couple of weeks, it was announced that more lenders are jumping into a “Streamline Loan Modification System”. What this means to the homeowner in need is that more consumers that can prove significant hardship will be able to stay in their homes if they can prove that they make enough money to afford the new reduced payment terms. I have heard a number of complaints from the “responsible” homeowners that claim it is not fair for their neighbors to get better terms and why it should not be rolled out to EVERYBODY that owes more than their home is worth. My answer to that one is:
1) Would you rather see a foreclosure sign or a property in disrepair next to your property?
2) Are you willing to see your credit suffer the same way that it gets hit to the people that are in financial distress?
America is under tremendous financial stress due to a deteriorating home values. It is not a time to be greedy.