Clinton and Obama on the Mortgage Catastrophe
Here is Obama's proposal to help solve the mortgage catastrophe as reported in the NYTimes:
"Senator Barack Obama called Thursday for tighter regulation of mortgage lenders, banks and other financial institutions, even as he spoke of pumping $30 billion into the economy to shield homeowners and local governments from the worst effects of the collapse of the housing bubble.
"He laid much of the blame for the current financial difficulties on the industry lobbyists and politicians who dismantled much of the regulatory framework overseeing energy, telecommunications and financial services.
“ 'Under Republican and Democratic administrations, we failed to guard against practices that all too often rewarded financial manipulation instead of productivity and sound business practices,' Mr. Obama said. 'The result has been a distorted market that creates bubbles instead of steady sustainable growth — a market that favors Wall Street over Main Street, but ends up hurting both.'
"Mr. Obama proposed to rebuild the government’s regulatory structure and promised not to clamp a too-tight hand on economic innovation. But he was unsparing in his view that industry lobbyists and weak legislators produced a misshapen deregulation of the economy.
“ 'Instead of establishing a 21st century regulatory framework, we simply dismantled the old one,' he said. 'Aided by a legal but corrupt bargain in which campaign money all too often shaped policy and watered down oversight.' ”
Here is part of Clinton's plan according to the AP, "The New York senator proposed greater protections for lenders from possible lawsuits by investors, a variation of so-called tort reform. For years, GOP leaders have called for restrictions on what they consider unwarranted lawsuits against businesses. Democrats have often resisted them on grounds they limit injured parties' legitimate rights to redress.
As William Greider writes, "Her logic is strictly from financial. 'Many mortgage companies are reluctant to help families restructure their mortgages because they are afraid of being sued by the investment banks, the private equity firms and others who actually own the mortgage papers,' Clinton explained. Good thought. Maybe she could send along a few security guards. I hear mortgage lenders are afraid of being tarred and feathered by those families who were conned into buying the sure-to-fail mortgages."
Clinton also proposes having Alan Greenspan lead a foreclosure economic group to come up with solutions to this financial crisis. Proposing Greenspan for this position is definitely like putting the fox in charge of the hen house or having a surgeon who botched an operation do the repair. He is part of the problem not the solution.
Here is an excerpt from an article I wrote on 12/18/07, "Alan Greenspan, former Federal Reserve chairman and Republican flunkie extraordinaire, played a key role in the mortgage crisis. He promoted adjustable rate mortgages that were risky and other highly levered ownership propositions. Greenspan is now trying to absolve himself by pointing the finger elsewhere, a hallmark of a true Bushite."
Who best understands the financial disaster caused by the no regulation, protect-the-greedy-corporate-lenders Bush administration and who offers a common good solution that a true Democrat like FDR would have proposed?
It isn't Clinton
"Senator Barack Obama called Thursday for tighter regulation of mortgage lenders, banks and other financial institutions, even as he spoke of pumping $30 billion into the economy to shield homeowners and local governments from the worst effects of the collapse of the housing bubble.
"He laid much of the blame for the current financial difficulties on the industry lobbyists and politicians who dismantled much of the regulatory framework overseeing energy, telecommunications and financial services.
“ 'Under Republican and Democratic administrations, we failed to guard against practices that all too often rewarded financial manipulation instead of productivity and sound business practices,' Mr. Obama said. 'The result has been a distorted market that creates bubbles instead of steady sustainable growth — a market that favors Wall Street over Main Street, but ends up hurting both.'
"Mr. Obama proposed to rebuild the government’s regulatory structure and promised not to clamp a too-tight hand on economic innovation. But he was unsparing in his view that industry lobbyists and weak legislators produced a misshapen deregulation of the economy.
“ 'Instead of establishing a 21st century regulatory framework, we simply dismantled the old one,' he said. 'Aided by a legal but corrupt bargain in which campaign money all too often shaped policy and watered down oversight.' ”
Here is part of Clinton's plan according to the AP, "The New York senator proposed greater protections for lenders from possible lawsuits by investors, a variation of so-called tort reform. For years, GOP leaders have called for restrictions on what they consider unwarranted lawsuits against businesses. Democrats have often resisted them on grounds they limit injured parties' legitimate rights to redress.
As William Greider writes, "Her logic is strictly from financial. 'Many mortgage companies are reluctant to help families restructure their mortgages because they are afraid of being sued by the investment banks, the private equity firms and others who actually own the mortgage papers,' Clinton explained. Good thought. Maybe she could send along a few security guards. I hear mortgage lenders are afraid of being tarred and feathered by those families who were conned into buying the sure-to-fail mortgages."
Clinton also proposes having Alan Greenspan lead a foreclosure economic group to come up with solutions to this financial crisis. Proposing Greenspan for this position is definitely like putting the fox in charge of the hen house or having a surgeon who botched an operation do the repair. He is part of the problem not the solution.
Here is an excerpt from an article I wrote on 12/18/07, "Alan Greenspan, former Federal Reserve chairman and Republican flunkie extraordinaire, played a key role in the mortgage crisis. He promoted adjustable rate mortgages that were risky and other highly levered ownership propositions. Greenspan is now trying to absolve himself by pointing the finger elsewhere, a hallmark of a true Bushite."
Who best understands the financial disaster caused by the no regulation, protect-the-greedy-corporate-lenders Bush administration and who offers a common good solution that a true Democrat like FDR would have proposed?
It isn't Clinton
Posted by Kaz at 3/27/2008 3:20 PM 
Categories: Clinton, Presidential Race, Obama, Economy, Housing Crisis
Categories: Clinton, Presidential Race, Obama, Economy, Housing Crisis
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