Foreclosure Prevention Act For Whom?

by: Guest Author

Tue Apr 22, 2008 at 08:00:00 AM EDT

Ok, call me crazy but I thought a foreclosure prevention bill is suppose to be designed to help average folks stem off foreclosures. So will someone tell me how a foreclosure prevention bill would contain bail-out money for automakers, airlines, alternative energy producers and other struggling industries? What do these clowns in Washington have to do to prove to the American public where their loyalties lie. Why is it that when average Americans seek help from their government they are treated to: rely on capitalism and the free enterprise system, but when these CEO's, who get million dollar bonuses whether their companies succeed or not, make bad business decisions it is ok for the government to bail them out. Who says we are capitalist? I guess the poor are, but the rich sure as hell aren't.

Washington - The Senate proclaimed a fierce bipartisan resolve two weeks ago to help American homeowners in danger of foreclosure. But while a bill that senators approved last week would take modest steps toward that goal, it would also provide billions of dollars in tax breaks - for automakers, airlines, alternative energy producers and other struggling industries, as well as home builders.

The tax provisions of the Foreclosure Prevention Act, which consumer groups and labor leaders say amount to government handouts to big business, show how the credit crisis, while rattling the housing and financial markets, has created beneficiaries in the power corridors of Washington. NY Times

These representatives of the people have made the argument that they don't want to bail-out consumers who have made bad credit choices. Let's say for the sake of argument that some mom and pops did overextend their budgets and purchased homes a little out of their budgets. These people made bad decisions concerning thousands of dollars, while these CEO's have made bad decisions in the millions of dollars. I can never understand how so many Americans have bought into the false narrative that the government safety net for them is bad, but that it is ok for corporations. It is this same mentality that allowed so many Americans to bite the bullet during the Depression while their rich counterparts continued to live high on the hog. We are being treated to a similar situation today, while many Americans are facing dire economic straits the hedge-fund managers, CEO's, and other Wall-Streeters have not only lost any buying power they have actually increased their wealth.

Congressional Democrats are also hearing from consumer advocates and other groups who say that the Senate bill does little to help Americans in danger of losing their homes to foreclosure.

"The Senate legislation gave corporations and Wall Street billions in tax breaks," Terence M. O'Sullivan, the president of the Laborers International Union of North America, said at a news conference on Tuesday to denounce the bill.

"Tax breaks for corporate home builders won't help stabilize the housing market, won't create jobs and won't prevent a single foreclosure," he continued. "If anything, this multibillion-dollar windfall will make things worse." NY Times

It doesn't seem to matter who is in the White House or who is in the majority in the House the results are the same. The moneychangers continue to rob from the public coffers with little resistance or oversight from those elected to protect us. Instead of bickering about who is bitter and who isn't, who has more experience, or who is out of touch maybe our candidates could discuss  how they are going to deal with coming economic meltdown and the continuing transfer of wealth from the average American to the super-rich. What a campaign about issues? God forbid.

Senator McCain has made it clear that he has no intention of changing course on the war or the economy. And instead of focusing on the real enemy of the American people the Democrats are arguing about the most insignificant things in an effort to distance themselves from each other. They need to be distancing us from the ill-fated policies of Bush and his clone McSame. But who wants a campaign that deals with issues, when we can have the "Desperate Candidates" soap-opera?  In the meantime the folks who need foreclosure relief the most will lose out to the likes of American Airlines, Goodyear, and General Motors all of whom I guess are subject to foreclosure.

There are many more wrong answers than right ones, and they are easier to find ~ Michael Friedlander