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Making it Official: Budget Cuts to NonProfits Who Help Low and Middle Income Homeowners The Cruelest Cut?

18 Apr

In this piece from Naked Capitalism, Doug Smith lays out not only the cruelty and carelessness of the Too Big To Fails mindless support from Government as they cut the budgets to those who assist homeowners, but also its downright stupidity.

Ah, but what else is new?

In the midst of millions of foreclosures, the government is cutting the budget to fund those who can help the homeowners struggling with predatory loans… In the midst of the most massive housing crisis in history, the government is cutting the budget of the one place that might help to bring some sanity and/or stability to the housing market…

If ever you were wondering just what and who and for whom this country is now being run, the answer is clear and it is not the people.

Third party? Forget a third party; what we need is a clean slate. Until the power of corporations as people and the collusion of government is broken, there is no future for anyone but the 1%.

Here’s a poignant bit of Mr. Smith’s article:

 

Look, we all know that “Wall Street Won”. We know the banksters control both parties and are immune from any threats to their bonuses or their liberty. Still, even on the banksters’ own terms of extend-and-pretend, these cuts are idiotic. Even a housing recovery timed to avoid inconvenient write-downs while banks recapitalize slowly enough to ensure billions in bonuses must seek a clearing of the market through a blend of reduced supply and increased demand – as well as mortgage products that normal people can understand and afford. And, while it might come as shock to the oligarchy, the housing sector requires participation by more than the top 1%.

Yet here’s where we stand:

➢ More than 50 million homeowners have mortgages.

➢ Nearly 25% of them are under water (home value less than what’s owed).

➢ Nearly 7 million are either delinquent or in foreclosure already. At the current pace, it would take 2 ½ years just to clear current over supply of foreclosed homes.

➢ Home prices are projected to continue falling somewhere between an additional 20 to 30 percent – meaning even more will go under water.

 

You can read the full article here.

 

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