Obama on Occupy Campaign - from the blog "Think Progress"
From The Chicago Tribune: “Obama to announce actions on housing, student loans” – the headline touts the President’s upcoming plan (details forthcoming) regarding restructuring home loans that have no equity (i.e. “under water” or loans that are much higher than the actual worth of the home – a situation that has worsened under the Administrations’ watch – as housing prices decline, a homeowner, who may wish to move to another part of the country, and or lower their mortgage rates, now finds themselves without the ability to either effectively sell the home and/or find financing in this credit crunch – lenders are not likely to extend or review a line of credit for an individual whose home is worth far less than the mortgage, and there is little to no equity in the home). This is one of the complaints of the “Occupy Wall Street” protestors, many of whom are on the payroll of Organizations that worked with Obama’s 2008 campaign.
Obama is, apparently, working with the FHA to bring this gem to Fannie and Freddie, the largest lending arm of the Government, and the one which is known to be less than financially solvent. Going directly to the FHA gives Obama the option to bypass Congress, charging that the Republican’s would block such a move – however, to be clear, the problem with underwater mortgagees has pre-2010 origins, and prior to that the President enjoyed a Democrat Controlled House and Senate – now, he faces a Republican controlled House, yet the Senate is still in Democrat Control – therefore, he a) might have thought about doing something sooner than later, and b) he most likely cannot get the votes necessary from Democrats to push through his latest initiative.
The second financial struggle (also on the “Occupy” protests agenda) is the overwhelming student loans that many of the protestors face. Apparently, unable to pay the huge sums that make up a college education and or fearing having to pay off large student loans, this issue is in the forefront of the movement primarily made up of students. The Student Loan Industry, a wholly owned subsidiary of the U.S. Government (passed into law by the President, through an Omnibus Spending Bill), has held the same model as previously when both private lenders and the main lender, Fannie and Freddie, were at the helm. Again, the same options of taking this through a Conges and Senate in Concert was on the table from 2008 forwarded, and from 2010 forward, the President still has the Senate in his corner, if he choose to push and or bock legislation. Although plans for the mortgage options are being announced earlier than the “Student Loan Initiative”, details on the mortgage plan will not be available until mid-November, (which may or may not be the date for details on the student loan initiative.).
With interest rates higher now, on Student Loans, and the cost of education through the proverbial roof, (unless one attends a community or state college and/or takes courses on line to reduce costs), students suddenly imagined they would be liable to pay off loans that would require six figure incomes, something that in this economy is a long-shot at best. The Occupy Group is asking for forgiveness of student loans, something that this administration has already done for those who work for the Federal government and or have risen to the challenge of volunteering for specific organizations approved by the Administration for a period of two years, (which this blogger feels is one of the better aspects of that particular plan by the administration – public service and reward for the same. That said, the only aspect of the program that could undergo some retooling – is the fact that one cannot get out from under a student loan, in the same manner as one might get out from under a home loan or any other type of secured or unsecured debt – through bankruptcy. In fact the student loan is the only loan or debt that one is not able to include in a bankruptcy filing and it is this opinion that is one option that should be on the “table”. Understanding that some might cringe at the idea of a federally funded student loan going under the bankruptcy heading, one must also understand that if a loan holder has lost his/her house, car, is un or underemployed, and cannot see any light at the end of the tunnel, that individual is still liable for the entire loan, and incurred interest and fees assessed while unable to pay and or obtain a forbearance (an option that allows the loan holder to delay payments for extended periods of time. Although the forbearance option can be viewed as a “safety net” – how much more so if those loans were included in a bankruptcy filing? It would take the will of the individual to go through the filing in the first place, and the fees to file, in order for the loan to be discharged under personal bankruptcy laws – which beats “forgiveness” of loans straight up – an out, but an out that has other consequences and is a course of last resort.
As both these issues are brought to the forefront now, three years into the administration, it appears to be more “campaign rhetoric”, touting programs that won’t get the support of both houses (one which is controlled by the Democrats), and yet, the Administration is harping that it is the Republicans who will block his bill – It was not the Republican’s who blocked the Administrations “Job’s Bill” – which supported long term stimulus and unemployment insurance for those already working in a government position, be it a teacher or firefighter or police. The jobs bill did nothing to crate private industry jobs, which, those jobs, in plain speak, are the source of the Federal Governments funds and allow the m the ability to fund those multi-billion dollar teacher’s aide Bills. At the moment, with high unemployment I the private sector, even House and Senate Democrat are unwilling to sign another stimulus. The idea that Obama would bypass the Congress translates into a lack of trust not only in the Republicans (who might surprise him on this issue) but also his fellow Democrats, who might be the ones who pull the rug out from underneath yet another plan which will cost the Taxpayers one red cent.
One must applaud the President for taking a look at these two issues, which are an extreme burden on millions, however, one would like to see a general consensus, especially in an election year, from both Houses of Congress, in order to lend legitimacy to the overall projects. By taking this issue to the “people” and bypassing his Senate, the move “smacks” of campaign rhetoric – it is just a question as to whether this time, the Rhetoric will appease Obama’s Occupy groups, and appeal to the independents and other critical groups for needed for reelection. It is the power of the Executive Branch to pull and “end run” around Congress, which makes one understand why Abraham Lincoln, was noted as Obama’s favorite president – the only President that shut down the press, and suspended the Constitution in order to achieve his personal goals.
Analysis and Opinion
No comments:
Post a Comment