By the banks, for the banks

Is anyone genuinely surprised that the White House’s foreclosure plan is designed to help the banks, and not the homeowners as advertised?

Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure. Housing experts expressed concern that banks, not homeowners, will be helped by the White House’s $3 billion funding infusion — $2 billion from the Treasury Department and another $1 billion from the Housing and Urban Development Department — going to those states hit hardest by the housing market crash and unemployment.

This is exactly the same trickle-down assistance approach that was previously taken by Ben Bernanke and the Federal Reserve and failed miserably. The fact of the matter is that the only reason foreclosures are a concern to the admininstration and the central bank is because they threaten to expose the insolvency of the banks. As is quite clearly the case, they are indifferent to the fate of the homeowning peasantry, otherwise they would have simply used that trillion in bailout cash to pay off problem mortgages.


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