” 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.