Bush’s Subprime Bailout Groundless?
While announcing a bailout seems like a simple way to please the constituents, the actual practice of bailing out people who took bad loans from predatory lenders is a difficult and thorny one. How can the government fairly help those who by all fairness created the mess they are now in?
The NY Post attacks the President’s plan for the simple reason that it’s not a plan at all. It’s a plan to help with no concrete details, and thus little more than a vague promise. They Write:
Neither President Bush nor his Wall Street guru Hank Paulson provided the elusive details of how their proposed mortgage rescue will actually play out in banks across the country.
Even so, they won applause for boosting Bush’s image as a savior of Americans facing home foreclosures, while at the same time casting bankers as Scrooges.
The White House’s rescue blueprint to ease the worst foreclosure crisis in 20 years, did, however, raise a curtain on a huge, backstage power struggle that is at the center of the crisis - the mechanics of how to redistribute the cash flows driven by the mortgages.
I’d like to help every American pay off mortgage loans, but sadly doing so just isn’t feasible. Unfortunately, it seems no one informed the President of this fact.
Comments
Leave a Reply
You must be logged in to post a comment.