Adding Insult to Injury: Obama Settles With The Bankers
As one who was affected by the mortgage banking crisis (and other unconstitutional property "laws") in my home state of Arizona way back in 2006, I was amazed to hear this afternoon that Barack Obama held a rather large news conference in order to announce that the federal government has come to a "settlement" with many of the major banking concerns (primarily located in the West) whose practices led to the loss of untold thousands of American's homes these last five to six years.
First of all, I'm scratching my head wondering just where in the Constitution it affords a president to act as a lawyer on behalf of the American people in this "class action?" It does seem rather odd to me, and don't remember a time in our history when a President has exercised such "authority."
Prosecuting and putting some of those individuals sitting on those Boards of Directors or CEOs and CFOs in jail for a very long while on charges of fraudulent lending practices, or other clearly criminal charges, yes.
But engineering a settlement outside Congressional authority even?
Just where is that duty of office in our Constitution?
It was bad enough when during the honeymoon phase of Mr. Obama's presidency he appointed the former CEO of Countrywide in charge of negotiating refinances for homeowners who were still in danger of losing their homes back in 2009.
Part of the terms of this deal is the payment of a few billion in fines, which apparently is going to be earmarked to offer to homeowners who were foreclosed on "inappropriately" $2,000 as repayment for the loss of their home.
More money also will be set aside for refinancing.
Of course, if the terms of those loans remain the same as the ones which led to this travesty I just wonder how this is going to help most of those homeowners who are still receiving those foreclosure notices.
If non-judicial foreclosures remain the rule of law in many states throughout the nation, just what power does the average homeowner in default due to the continuing joblessness and piss poor economy have against the banking industry still, and their lawyers?
Let me get this straight.
The Federal Reserve who owns all of these banks (created by Congress) poured billions of dollars into these banks during the bank bailouts in 2008-9, which was to be used to ease up credit (which never really happened, but simply afforded the big box banks to buy out the smaller banks) - and now Obama has orchestrated the return of SOME of those monies in order to pay to fund more refinances, and payment of $2,000 to those for which it is "too late" and lost their homes this past five years.
Don't get me wrong. Mr. Romney's "solution" of letting the foreclosures hit bottom so that investors or corporate limited partnerships can scam some of thsoe hot properties for rentals was far, far worse.
Talk about socialism and shifting the wealth around to the politically fortunate.
But I guess it played well for those in the Beltway in the room when he made this much publicized announcement.
But seems to me the current market conditions and all those still empty homes across America are demonstrating a vote of "no confidence" on Main Street.
Tags: Obama , Mortgage , Crisis , Banking , Banks , Bank Of America , Chase , Indy Mac , Foreclosures , Eocnomy
This work is licensed under a Creative Commons Attribution-No Derivative Works 3.0 License.