Moratorium on Foreclosures Will Boost Economy

” A Pale Green Mermaid Blog”

 

A one year moratorium on foreclosures will stimulate the economy as well as any stimulus plan.

The question is which came first, the economic slump or a nationwide wave of foreclosures.  Looking at my own neighborhood,  as I do when I walk everyday for 45 minutes, it was the foreclosures that started 2 years before the bailout of the banks.

With the foreclosures  mounting came business closings and states not having enough money to pay for services provided to the public. (which began additional foreclosures due to job loss)

 

There was an expert on NPR early in the bank crisis who stated that the amount of the derivative financial products (that were kept afloat by predatory loan practices- credit card type mortgages) numbered not in the millions, not in the billions but the trillions.

As President Obama said on 60 minutes last Sunday ” The banks caused this problem…”, and now this blog is requesting that the banks clean up and be accountable for the Ponzi scheme -like financial products they traded. (which are based on selling predatory mortgage loans to the public)

 

While they are doing this, and taking financial responsibility for the errors -( a criminal investigation should also be set in place  to investigate the steps in creating aforementioned products),

A one year moratorium should be imposed, while the banks move through this process,

1. It will stabilize drain on taxes for state services

2. Stop business’ from closing due to population shifts caused by foreclosures

3. Keep families and individuals in their homes ( The general public should not be paying for the mistakes of a few fat cats at the top of the banking system)

 

So write your congress person, start petitions, I believe with a public outcry that a foreclosure moratorium is possible.  ( Citibank just put a 30 day moratorium on their foreclosure process and they are to be commended but we , the public ,can not wait  for all banks to do the right thing.)

 A year-long moratorium on foreclosures is a win/ win situation, a win for the economy and a win for the economic engine, the bottom 2/3 rd’s of the population- the place where the majority of all new jobs are created.

 

Peace

 

www.congress.org

www.thedailyshow.com

www.cnn.com

 www.npr.org

www.whitehouse.gov

 

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2 Comments

Filed under Economy

2 responses to “Moratorium on Foreclosures Will Boost Economy

  1. Thank you so much, there aren’t enough posts on this… or at least i cant find them. I am turning into such a blog nut, I just cant get enough and this is such an important topic… i’ll be sure to write something about your site

  2. Hi, it is a real problem… there was an segment on NPR today where a journalist from the Wall Street Journal said that the banks are making money trading now but still refuse to lend to the general public.. they caused the problem and are elongating the recovery through their unsavory lending methods. As I mentioned before they are suffocating the economic engine (The bottom 2/3 of the economy) with this refusal to clean up the mess by focusing on readjusting the predatory mortgages they sold!

    Thanks for you comment.

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