Legal Commentary

No Help For Homeowners Promised In Obama Speech

By Big Tent Democrat

Barack Obama delivered a good speech yesterday in LaCrosse, Wisconsin. It was marred by his failure to address, or promise to address, the plight of homeowners and Main Street in this country. Unlike Hillary Clinton, Obama has not embraced a modern day HOLC. It is perplexing to me why he refuses to do so.

Today, the NYTimes Ed Board wrote:

Falling house prices are driving the collapse of the financial system. But the bailout bill, even the “sweetened” version that was approved by the Senate Wednesday night, does little to avert the defaults and foreclosures that are pushing house values ever downward. At last count, six million people were expected to default on their mortgages this year and next, putting them at risk of losing their homes unless they can catch up in their payments or catch a break on their loan terms. And they’re not the only ones at risk. As prices drop, millions of people who have never missed a mortgage payment stand to lose their home equity.

And yet, Obama has had little to say on this subject. It is perplexing to me. More . . .

Here were some of the good things Obama said in his speech:

I know many Americans are wondering what happens next. Passing this bill will not be the end of our work to strengthen our economy - it's just the beginning of a long, hard road ahead. So let me tell you exactly how I'll move forward as President.

From the moment I take office, my top priority will be to do everything I can to make sure that your tax dollars are protected. I will demand a full review of this financial rescue plan to make sure that it is working for you. If you - the American taxpayer - are not getting your money back, then we will change how this program is being managed. If need be, we will send new legislation to Congress to make sure that taxpayers are protected in line with the principles that I have put forward. You should expect nothing less from Washington.

If we do have losses, I've proposed a Financial Stability Fee on the financial services industry so Wall Street foots the bill - not the American taxpayer. And as I modernize the financial system to create new rules of the road to prevent another crisis, we will continue this fee to build up a reserve so that if this happens again, it will be the money contributed by banks that's put at risk.

This will only work if there is real enforcement and real accountability. And that starts with presidential leadership. So let me be very clear: when I am President, financial institutions will do their part and pay their share, and American taxpayers will never again have to put their money on the line to pay for the greed and irresponsibility of Wall Street. That's a pledge that I'll make to you today, and it's one that I'll keep as President of the United States.

This is good stuff. And there is more good stuff in the speech. But what is missing troubles me greatly. Senator Obama, it is time to embrace HOLC and promise to work to create a modern day HOLC to address the real cause of today's crisis.

By Big Tent Democrat, speaking for me only

Full post as published by TalkLeft on October 02, 2008 (boomark / email).