In financial crisis, Obama is more of the same

San Francisco Chronicle ^ | 6/25/9 | Robert Scheer, Creators Syndicate Inc.

[SmithL]

It's not working. The Bush-Obama strategy of throwing trillions at the banks to solve the mortgage crisis is a huge bust. The financial moguls, while tickled pink to have $1.25 trillion in toxic assets covered by the feds, along with hundreds of billions in direct handouts, are not using that money to turn around the free-fall in housing foreclosures.

As the Wall Street Journal reported Tuesday, "The Mortgage Bankers Association cut its forecast of home-mortgage lending this year by 27 percent amid deflating hopes for a boom in refinancing." The same association said that the total refinancing under the administration's much-ballyhooed Home Affordable Refinance Program is "very low."

Aside from a tight mortgage market, the problem in preventing foreclosures has to do with homeowners losing their jobs. Here again the administration, continuing the Bush strategy, is working the wrong end of the problem. Although President Obama was wise enough to at least launch a job stimulus program, a far greater amount of federal funding benefits Wall Street as opposed to Main Street.

State and local governments have been forced into draconian budget cuts, firing workers who are among the most reliable in making their mortgage payments - when they have jobs. Yet the Obama administration won't spend even a small fraction of what it has wasted on the banks to cover state shortfalls.

California couldn't get the White House to guarantee $5.5 billion in short-term notes to avert severe cuts in state and local payrolls, from prison guards to schoolteachers. Compare that with the $50 billion already given to Citigroup, plus an astounding $300 billion to guarantee that institution's toxic assets. Citigroup benefits from being a bank "too big to fail," although through its irresponsible actions to get that large it did as much as any company to cause this

[the_devils_advocate_666]

I said it here already, CA knows that Obama will bail them out so they are only half-ass trying to fix their budget problems.

[goodnesswins]

"California couldn't get the White House to guarantee $5.5 billion in short-term notes to avert severe cuts in state and local payrolls, from prison guards to schoolteachers. Compare that with the $50 billion already given to Citigroup, plus an astounding $300 billion to guarantee that institution's toxic assets. Citigroup benefits from being a bank "too big to fail," although through its irresponsible actions to get that large it did as much as any company to cause this..."

HAHAHAHAHAHA......like California government did NOTHING to get where it is.....HAHAHAHAHA....

[himno hero]

Help me with this...

The second sentence... “The Bush-Obama strategy of throwing trillions at the banks to solve the mortgage crisis is a huge bust”

At what point did Bush have a hand in this that he could be married to Obama?

[Da Coyote]

Well, duh, SF Chronically dumb.... you and your fellow “journalists” might want to take Econ 101 from a creditable university (e.g., one with more science classes than liberal arts classes) and learn the basics.

Obama: “The plane is loosing altitude, so all we have to do is pull back on this stick thing...then we’ll go up.”

[freedomlover]

At what point did Bush have a hand in this that he could be married to Obama?

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In a logical or illogical world?

[autumnraine]

“Although President Obama was wise enough to at least launch a job stimulus program,”

Yeah, he was wise enough to ‘launch’ it, but where the hell is it?

[Oatka]

Why was I so naive as to have expected this Democratic president to not do the bidding of the banks when the last president from that party joined the Republicans in giving the moguls everything they wanted? Please, Obama, prove me wrong.

Well, it's only taken these Kool-Aid drinkers six months to discover Obama is the political equivalent of Jim Jones. Reality bites.

[himno hero]

Lets try factual reality.

[freedomlover]

Lets try factual reality.

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Let’s try another newspaper, then.

[Mr. Jeeves]

The financial moguls, while tickled pink to have $1.25 trillion in toxic assets covered by the feds, along with hundreds of billions in direct handouts, are not using that money to turn around the free-fall in housing foreclosures.

Translation: They aren't giving that money in the form of partial loan forgiveness to people who borrowed more than they could afford.

Did anyone really expect them to?!?

[Crimson Elephant]

The finance oligarchs don’t WANT to “solve the problem” they created the problem and so far they are getting everything they want, total control.

[Wolfie]

It's not working.

Au contraire. It worked perfectly. The mistake is thinking that it was supposed to help anybody but the fat cats at the top.

[Wolfie]

Forgotten the Bush presidency already? What’s your secret? I’d like to forget it too.

[himno hero]

Sorry dude Wolfie, Bush is a LARGE contributing factor in the democracy movement washing through the islamic world today. The shake down in Iran is a combination of knowledge, freedom, rights and democracy blended with a little internet and Bush Doctrine. The Iranians want into the 21st century and democracy.
Rest assured, the mullahs will be pushed aside. Its just a little time. Freedom, rights, democracy and the 21st century will move in.

My point is as far as I am aware, Bush and Obama never worked together. NEVER.

[Wolfie]

That’s some serious context switching. What you’re saying is that you excuse Bush’s big spending bailout mentality (while decrying the same from Obama) because, well, you like the other things he does. Fine. Just call it what it is.