While Congress is expected to vote on the future of TARP funds today, a report from RealtyTrac that the number of repossessions doubled from 2007 to more than 860,000 will likely sway a number of votes in favor of Obama's push for the release of the second half of TARP. More than 2.3 million American faced the possibility of foreclosure in 2008, which is an 81 percent increase over 2007.Moody's Economy.com predicts the foreclosure parade is not over yet. The research firm believes that the number of people who lose their homes will increase by another 18 percent in 2009 and then start tapering off through 2011. In trying to stem this onslaught of foreclosures, Obama promises to use the last half of TARP to help consumers, small businesses and municipalities, as well as reduce the rising rate of foreclosures. But will Congress give him the chance?
Stories today indicate that bipartisan opposition to the release of the second half of TARP funds continues to grow. The Congress could vote to stop the next release of TARP and one of Obama's first acts as president could be to veto that bill. Today's vote in Congress will send some signal as to what chance Obama has for getting the rest of the rescue funds.
If no action is taken, foreclosures will continue to break records. The Mortgage Bankers Association expects foreclosures to remain well above normal levels for years to come. While you might hate the idea of a bailout, without stemming the tide of foreclosures there is no chance to stop the downward spiral in home values.
Today many people who did the right thing - bought a home they could afford with a sizable downpayment and a fixed rate loan - are watching the value of their home drop like a stone. Many of these people who bought a home in 2005 to 2007 face mortgages that are already underwater as prices continue to fall.
The key to any new bailout funds must include help for Main Street to make it possible for people to stay in their homes; it must free up the credit markets for small businesses, so they can the funds they need to remain open in this tough financial market; it must make funds available for municipalities so they can act to stem the damage from this financial tsunami; and it must encourage job creation to put people back to work and reduce the rising tide of unemployment claims. The banks and Wall Street have gotten more than their fair share of bailout money,
Lita Epstein has written more than 25 books including "Surviving a Layoff" and "The 250 Questions You Should Ask to Avoid Foreclosure."
Today many people who did the right thing - bought a home they could afford with a sizable downpayment and a fixed rate loan - are watching the value of their home drop like a stone. Many of these people who bought a home in 2005 to 2007 face mortgages that are already underwater as prices continue to fall.
The key to any new bailout funds must include help for Main Street to make it possible for people to stay in their homes; it must free up the credit markets for small businesses, so they can the funds they need to remain open in this tough financial market; it must make funds available for municipalities so they can act to stem the damage from this financial tsunami; and it must encourage job creation to put people back to work and reduce the rising tide of unemployment claims. The banks and Wall Street have gotten more than their fair share of bailout money,
Lita Epstein has written more than 25 books including "Surviving a Layoff" and "The 250 Questions You Should Ask to Avoid Foreclosure."
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Reader Comments (Page 1 of 1)
1-15-2009 @ 6:59PM
Doug said...
The Government should let free enterprise work through the problems. The market will prevail. by government involvement we will prolong the recession. Just look at history.
1-15-2009 @ 12:58PM
Doug said...
Remember:
You cannot bring properity by discouraging thrift.
You cannot strengthen the weak by weakening the strong.
You cannot help the poor man by destroying the rich.
you cannot further brotherhood of man by inciting class hatred.
you cannot estabiish security on borrowed money
You cannot build character and courage by taking away man's initiative and independence.
You cannot lift the wage earner by pulling down the wage payer.
You cannot keep out of trouble by spending more than your income.
You cannot help men permanently by doing for them what they will not do for themselves.
1-15-2009 @ 1:30PM
Carroll Hurst said...
What if the so called bailout money went direct to the people with assurance the money pays off your house and cars. Everyone benefits. Since the money that will come from the tax payer funding this why not help payoff their debts as a one time deal and the car and housing mortgage lenders are benefited as well as the people. Everyone wins, and not just the mis-managed big businesses.