“A Pale Green Mermaid Blog”
Confidence… thrives on honesty, on honor, on the sacredness of obligations, on faithful protection and on unselfish performance. Without them it cannot live.
Franklin D. Roosevelt
The anger from the public reflects the lack of cash for the bottom 2/3 of the market, banks are hoarding the bailout money refusing to lend and the servicers (who work for the banks) are overall refusing to refinance the mountain of mortgages caught up in the credit swap/ subprime mortgage financial crisis.
If we keep bailing out the banks and they continue to be zombie banks – not lending to the public, all that will be left standing will be a bunch of banks with no one to lend to.
1. One answer is the Obama plan to open a government bank that will start lending to the public and let the banks that are not financially viable go into bankruptcy and restructure. No further bailouts.
2. the other answer is to force the “servicers” ( people who are the middle person between the investors and the mortgage owners – who got involved in the predatory loan products) to refinance and take the loss for the mortgages that are in crisis,
they could use a standard of offering a 5% mortgage and payments of 1/3 the owners yearly salary. All who could meet that standard would get a refinance.
Peace and good luck to us all!