The Politics of Shame

warning, major rant ahead

The Obama administration, with all of it's weighty might, the Presidency of the United States, wants to really bear down on mortgage lenders and use shame to force financial institutions to help homeowners.

....are you f@#king kidding me? Shame?

How can you provoke shame in corporate entities? They have no soul! That's like thinking one will get remorse from a serial killer. Seriously.

What happened to good old fashioned regulation, oversight and legality? As I recall the government makes the laws...right? How about plain make their current scheme, which is sucking up huge profits from late fees and foreclosures, not profitable?

FDIC Trying to Get Just $24 Billion For Homeowners, Bush Admin Opposed!

Ya gotta shake your head when just like that Hank Paulson and the Bush administration hand over $250 billion to selected banks yet try to fight any of the bail out money going to homeowners.

Yet, here it is

FDIC publishes $24 billion plan to avert 1.5 million foreclosures by end of 2009

Testifying on Capitol Hill Friday, Neel Kashkari, the Treasury Department's assistant secretary for financial stability, said the aim of the $700 billion plan was to make investments with the hope of getting the money back. That he said, was "fundamentally different from just having a government spending program" that would disburse money with no chance of ever seeing any returns.

Government spending program? No returns? Seems like financing executive pay packages for do nothings who already ran their companies into the ground is the real spending program with no returns.

Finally, The Treasury and FDIC Consider $500 Billion for Homeowners of Bail Out

We're finally seeing the possibility of homeowners in trouble getting a break.

Treasury, FDIC Said to Consider Guarantees to Stem Foreclosures

The U.S. Treasury and the Federal Deposit Insurance Corp. are considering a program that may offer about $500 billion in guarantees for troubled mortgages to stem record foreclosures, people familiar with the matter said

The terms, not official would be:

The plan, which might put as many as 3 million homeowners into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay