Obama to By-Pass Congress on Student Loans and Mortgage Reduction – Work directly with Fannie and Freddie – Plays Occupy Arm of Campaign

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

Occupy Groups – Socialism to Anti-Semitism, Starting Another French Revolution – Winter approaching – will Occupy revive in time for 2012?

The Occupy New York Camp, holding 2000 protestors -image the Blaze dot com

Although touted by major media groups as part of “A long American tradition” (Los Angeles Times), that are only seeking ”fairness and a future”, the groups beginnings in progressive socialism, using the ideological collective forum, allows speech that is both incendiary and anti-Semitic. Although there is now a concerted effort to tie the fledgling “Occupy” protests to the Tea Party (Politico), as in the similarities of a “protest movement” – there is little similarity between the two groups, with the exception that the “Occupy Groups” are protesting. Otherwise, Occupy groups have no specific “collective” goals.

For example, if one looks at videos (which abound) on protests in smaller urban and suburban areas, those few college students, professors, and the like, chanting in unison, and skipping merrily up the street appear frivolous, joining in the “fun” of the protest movements their 1960’s era professors so badly miss. However, in larger urban centers such as New York and Los Angeles, the “collective” is a bit unorganized, not only allowing violent and Anti-Semitic speakers a platform, (1st Amendment), but supporting the individual as part of the “collective”.

Although some may find the process of the collective chant amusing, and downplay the significance of the group due to small numbers, the fact that as a “collective” that type of rhetoric is not only protected but encouraged, belies the fact that the “Occupy” as an individual has no clear concept of the nature of Socialism and individual “wealth”. For example: Via Pajama Media’s “Tatler” comes a video of a Los Angeles “Occupy” individual proposing a “French Revolution” in order to support “Socialism” and option to take rather than spread any wealth. (See Video Below)

In another instance, an Occupy Protestor shouting “Jews Control Wall Street” – got a little help from the “collective” who chanted “freedom of speech, this brother needs to be heard and healed” (See YouTube video here) - This encourages and lends to an anti-Semitic stance that has been long-held in nations that are indeed “socialist”. There is a fine line between the goals of Socialism and Nazism – both use violence as a means to gain power and overthrow a system that has wealth on the top, with “peasants” on the bottom, in exchange for a system that puts only the few “elite” (those that begin the movement) at the top. The end result, the balance (protestors) being less well off than anticipated, otherwise known as the “masses”.

It is not clear that those that are at these gatherings even understand the consequences of what they are asking for, or more to the point, what they are asking for. To uphold Socialism as an “Ideal” shows a lack of disconnect and or education as history has proven the model does not work. In Russia for example, the Revolution was certainly bloody, yet, who ultimately paid the price? It was the “masses” that faced bread lines and forced labor, lack of freedom, imprisonment, censorship, and cramped housing, while the “leadership” lived in lavish lifestyle. As there was no incentive to create wealth through enterprise, the system collapsed – not on political principals, but on economic principals.

The former “Soviet Union” is now made up of a series of “states”, and is no longer a collective. The smaller “socialists” nations, such as Austria, appear on the surface to be working out just fine, however, those at the top of the food chain, stay there, while there is no opportunity for advancement for say, the worker in the chocolate factory, or their offspring, who will work in the chocolate factory. Although those in this society willingly appear to give over up to 70% of their paycheck in exchange for government paid vacations, government paid electricity, government controlled housing, and the system is embraced by this nation the size of Rhode Island, it does not allow for any margin of error, or for that matter, the ability of the individual to rise above their “station in life”. This is an example of a “successful” socialist government.

The one link between all former and current socialist systems is a combination of a bloody beginning, a working populace that is demanding parity, and a state formed where those who demanded parity continue to be the peasants (with very few exceptions), with little change in status, and no freedom to change the outcome should the individual feel they had made a mistake in the first place.

It is the ignorance of history and facts, specifically coming from those who are American born, or who have lived in the United States for most of part of their lives – here, in the United States, where we enjoy a Democratic Republic (often confused as a Democracy), the individual, no matter how poor, has the ability and tools to rise above a station. There are the very wealthy, there are the corporations who hire the “workers”, however, those workers are free to go elsewhere for employment, or to begin their own businesses. The system that is based on capitalism, much maligned by those “socialist” ideologues who refuse to look at the failures of their systems, may have flaws, however, this system continues to provide: the workers who the Government relies upon for taxes in order to promote socialist style entitlement programs, those workers who are free to move from job to job and state to state (without permission from a government), and to achieve goals high above their “peasant” or “masses” positions. It is the most simplistic of explanations, yet factual and unfortunately, lost on those who are “Occupying” a nearby neighborhood.

How long will these Occupy protests continue? It is hard to say, it may become a movement that offers solutions to those who long to be socialists, or with the coming winter, and the constant reliance on “free” food, camping areas, and the like, there may have to be a break in the less inclement states until Spring. One has to understand, as well, that should CBS, NBC, ABC and their local affiliates, begin to broadcast the “collective” assemblies, instead of the “happy protestors” prior to the “Collective Assemblies”, the nationwide response may turn to one of “who cares, kids having fun” to one of some alarm’, but most likely “amusement” (unless of course, those chanters begin to collectively recognize the French Revolution). This is where the media fails. It is a grand diversion from the scandals assailing the current Administration, from cronyism with Green Industry, to the Fast and Furious scandal under the Attorney General, but is it enough to carry those like minded progressive socialists through 2012? Will those in the “collective assembly” in the Northeast and large urban areas in the Midwest be as prevalent once the temperatures truly drop and the snow starts to fly?

Having attended “Tea Party” events and meetings (granted a handful) what one finds is a neat, orderly, group with a focus on education (communism, socialism, the isms and economics), who police themselves, without the assistance of the local “parks and recreation” department of a local government – saving tax payers dollars. Meanwhile, having not attended an “Occupy” protest, and basing this opinion on reading articles, watching videos, and confirming multiple sources, it appears these groups anticipate someone else must pick up after them, that everything is free, and that they are learning – nothing – but they are fabulous “collective” chanters. Therein lies the crux, they appear as media darlings, and should the reemerge in 2012, will be a grand diversion from any shenanigans of a political nature specifically coming from the administration – nothing more than useful tools, not unlike the Socialist masses of the early 1900’s and throughout the 20th century.

You Tube Video “Occupy” protestor proposes Occupy model after the “French Revolution” and “socialism”