The big banks have made a killing reaping huge profits and their executives getting tens of millions in bonuses during this downturn in the economy. The auto industry has been bailed out to the tune of hundreds of billions of dollars. Yet the government is letting the banks get aware with their misdeeds that have destroyed millions of Americans with a slap on the wrist. The rich have gotten richer raping the middle class into poverty.
Giving the 4 million Americans that lost homes in foreclosure $2,000 each is an absolute insult. This won’t make a down-payment on a home or pay for rent for more than two months or pay for a mortgage payment for more than two months. This is spitting in the wind – an absolute insult to all of us. These people have lost in general $100,000 or more in equity in their homes when the housing prices dropped from under them. Any equity they had was lost because of the malfeasance of the banks in encouraging bad loans.
Of the eleven million Americans whose homes have values less than the mortgage, the average amount over the value that the families owe is $50,000. It is an absolute insult to state that this will be reduced by $20,000. Whether it is $20,000 or $50,000 that is owed beyond the value of the house, this will make no difference in their ability to pay the mortgage and keep the house out of foreclosure.
The bottom line is that the government is letting the banks get away Scott free and throwing a small number 1/11 homeowners (about one million) who are under water a bone and throwing 4 million who are now destitute and who have already lost their homes another bone, purely as a publicity stunt.
We expect better. The people need to be bailed out as well as the 1%. We should demand a bailout in the range of at least $260 Billion rather than $26 Billion. This new plan will do nothing except allow the rich, the banks, and the government to say in the papers that they are “solving” the problem. Mr. President and the banks – this is BULLSHIT!