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2010-10-26 12:26:00

Foreclosure Related Problems and the Bush Habit of Kowtowing to Wall Street

<p>Obama has inherited not only the  <a href="">foreclosure</a> related problems but also the Bush habit of kowtowing to Wall  Street, while remaining indifferent to the suffering of ordinary Americans on  ordinary streets. Since the time of Obama becoming president, the country has  seen over 300,000 foreclosure postings each month, noted The <a href="">New York</a> Times. Of  the $30 billion allotted for solving the problem only $321 million has been  spent. The harsh reality is that a mere 398,198 mortgages have been permanently  modified.</p>
<p>The foreclosure problem has been persisting  for so long that it has become boring unless one is directly involved. None of  the well greased experts handling the media are in any such situation. Thus the disaster that has struck 4 million households in the previous two years has not  got the attention due to it.</p>
<p>But now even the highly paid media  personnel cannot wink away the latest figures on house sales, foreclosures and  unemployment rolling in. The sale of houses has been the lowest since the last  15 years. Unless the housing sector improves, the health of the economy will  remain a far cry. The stock market reacted by tanking on the report that house  sales have dropped by 25.5% from what it was one year previously.</p>
<p>The effect of the foreclosure on a house  does not remain confined to the property itself – it spills over to the  neighbourhood. The equity of those house owners who have been meticulously  paying their mortgages crash, thanks to the falling property value in the  entire locality. After the banks throw those properties into the market the  prices tumble further.</p>
<p>The response of the administration to such  fierce bleeding of the equity has been extremely weak. The states have come  forward with a meagre $4.1 billion to assist the unemployed and other borrowers  threatened by foreclosures to see that they do not lose their homes. In  contrast trillions have been spent to make the financial sector super rich  again.</p>
<p>It is impossible for Obama to change this course  and reverse it with the team of economists who are helping him. They are the  pundits of the Clinton era – Lawrence Summers and Timothy Geithner. They had a  big hand in creating this mess and now they are being looked up to solve this  mess. There is one fear that guides them – not to rattle the financial ogres on  whom the nation depends for investments.</p>

Julie Thompson, has been working on studying the foreclosures market, helping buyers on the finer points of <a href="">foreclosed homes in california</a>. Try to visit and find all related information about <a href="">foreclosed home</a>.

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