Obama dont like black folk: Mortgage Relief Program Just a Ploy to Pump Money Into Wall Street

When the Obama administration took office, they also inherited the economic troubles worsened by the Bush years and the prior presidents from Bill Clinton to Ronald Regan. Obama's approach was twofold. First was to continue the TARP program that Bush started at the end of his tenure and to try to curtail the massive number of foreclosures across the country. However, it has now been revealed that his only goal was to prop up banks through the use of both.

New reports have documented that the Obama administration's mortgage relief program isn't working. This is to say it is not helping assist homeowners facing foreclosure. Instead it is taking money from struggling homeowners and channeling it to banks. The program, which many purport is poorly designed and executed, has only aided a small proportion of individuals actually seeking and needing assistance.

In theory, the program was supposed to lower monthly payments for borrowers. However, it doesn't even reduce the overall debt burden that many homeowners facing foreclosure experience. Now it has been discovered that top treasury officials admit that the mortgage plan was actually designed to pump money into banks in an effort to protect them from future losses and bad debt — in essence another program implemented in the interest of Wall Street over Main Street.

Timothy Geithner, who wanted banks to make money in an effort to stabilize the economy, has used the mortgage relief program to enrich bankers riding on the backs of troubled homeowners when the focus should be to assist struggling individuals who are trying to keep their homes.

The Home Affordability Modification Program (HAMP) allows homeowners to ask their loan holders for relief on monthly mortgage payments via reduced monthly payments or lowered interest rates, for example. This is a win-win for banks because it keeps monthly payments coming. However, it actually gives homeowners the shaft because the banks do not lower how much individuals pay, thus individuals end up paying more for their homes than they are actually worth on the market.

Although Obama's economic team continues to repeat the mantra "the economy is continuing to recover," the fact remains that in terms of the aforementioned and economic indicators I read, that is not the case. If Obama is genuine about helping troubled homeowners, then his efforts should target having an individuals debt burden from their mortgages reduced. Banks will take a loss, but massive foreclosures will be averted. This is not a recovery and if the advice of folks like Geithner and Larry Summers is what Obama is using, then we will be up the creek for a long time to come. In all simplicity, we need around 2.5 percent growth just to keep unemployment from rising and until we are honest and admit this is not a recovery, things will only get worse before they improve.

Black folks need to wise up and increase their understanding of economics and look at policy as policy, regardless of who it comes from, even if it is a black president. If we don't, then Kanye West may be saying, "Barack Obama don't like black people."

let me get a coupla trillion mane

Was gonna do a fluff post today, since I know a lot of folks don’t like to read, and others say I’m too deep and still more say I don’t need to talk bad or negative about Obama. On the latter, I like the guy, smart, astute and talented, and a strong family man. But the policy is not the man so let us not forget such. I will put the fluff post up Friday for the weekend; it will be called ASK ME ANYTHANG U WANT. But for the time being, me still focused on loot and the economy.

Was reading between the lines of the press briefing new treasury secretary jones gave yesterday. From what I take, it is calculated that President Obama is preparing to do a new rescue plan for Wall Street next week which may hit the $2 trillion mark. The plan will likely include creating what he calls a “Bad bank”, which I might interject sounds like the RTC to me. I mean if we revisit our history, The Resolution Trust Corporation was a Governemnt-owned asset management company. It was designed to liquidate real-estate and mortgage loan that were once those of the Savings and Loan Association. The savings and Loan Association was declared insolvent by the Office of Thrift Supervision. This was due to the said savings and loan crisis of the 1980s

Now what is a bad bank you ask? Well like the RTC, it would be a government-run entity that will purchase assets that are fuckn up the balance sheets of financial institutions. Treasury Secretary Timothy Geithner has alluded that the government will purchase basically worthless mortgage-backed securities and other "toxic" assets held by the banks, provide guarantees against future losses and also inject cash directly into the banks. If the government buys common shares in these institutions, the likely outcome will be that weaker banks will become the property of the Feds.

It is perfect timing too since most media attention is focused this week on the debate on the economic stimulus package and because the general populous is blinded by the Obamafication of America. According to my math, with all the bail outs before with the last President’s, and capital injection as well as loans and guarantees to the major banks/financial firms, this behavior has cost we the people about $8 trillion. This when we see the proposed Obama recovery plan don’t do jack to deal with ending the wave of incessant job loss or high rates of home foreclosures. All it does is makes for some lucrative tax write-offs for these institutions.

And back to this “Bad Bank” idea, the Feds will not buy these assents for their face value (less than a dollar in many cases if not pennies) but based on a "valuation model," guaranteeing top dollar prices. Making these Banks richer than they were before. Lesson being we are rewarding criminal behavior. They won’t even open the ledgers and books of these financial giants (hedge funds and banks included) to the public.

I don’t know what is next, and I have not yet developed any statistical models to discern the tenable impact of a $2 trillion dollar bail out package, especially in reference to the impact on so called “Main Street.” But what I do know is that we don’t have that much loot in our coffers, that we will become more in debt to China, that our deficit will increase massively and last but least our GDP will be reduced basically to shit. Dang, aint that some shit? All this is just my personal rumination and is merely speculation on my part. But we may be seeing more robberies into the future folk – again it is real in the field. Maybe martial law aint so far fetched in the future afterall. So long live complex finincial instruments whose values are derived from the value of things that don't exist.