Another Mortgage Bailout

http://www.washingtonpost.com/wp-dyn/content/article/2010/03/26/AR2010032602031.html

This isn't solving anything. It is only kicking the can down the road. The problem remains jobs. Nobody is fixing the problem. So the government pays the banks to change the loans. So what? The borrower still doesn't have a job so the problem isn't going away.

The original idea of TARP was to take the troubled assets from the banks (freeing the banks to lend again). In the end Henry Paulson just gave money to the banks and let them keep the assets too. A win win for the banks. But then everyone got mad and the government said the money needed to be paid back. The banks didn't care about paying it back until the government said executive pay will be curtailed to any bank which took TARP money. That caused the banks to pay all the money back in about 4 seconds. Suddenly all the banks were fine again. Anything to keep their cushy paychecks.

But here we are back where we started. The banks are losing their shirts on foreclosures oh no......... So Obama will pretend that he is helping the people when really he is helping the banks. This is all about the banks. The banks will modify the loans but the government is handing them the money to do it. So the sacrifice to the banks is minimal.

Again nothing happens unless the government forces it. This is just another corporate giveaway dressed up to please the angry voters in an election year. In the end it will fail (like all the other dim witted programs have failed) because there are no jobs........