FDIC Chair Has the Right (and FAIR!) Idea

Sheila C. Bair, Chairwoman of the FDIC has proposed several variations of a plan to help homeowners stay in their homes. The Treasury Department, officials at the White House are angry at her, however. Angry at her.

From today's NY Times Article:

"Around the time that the F.D.I.C. took over IndyMac, Mrs. Bair began urging Treasury and White House officials to use taxpayer money to encourage other lenders and mortgage servicing companies to modify large numbers of at-risk loans, a plan she expected would help 1.5 million borrowers avoid foreclosure and reduce an oversupply of homes on the market. She estimated the program would cost taxpayers about $24 billion."

Controlling the housing market by reining in the flood of homes for sale, would really help those who are watching their own homes decline in value. Equity, the investment homeowners have always banked on is slipping away like Santa Monica beachfront properties built on sand. Going, going, there they go....bye bye! GONE!

These vulture bankers have gotten theirs and are now using the cash to pay off stockholders, maintain their positions, basically indulge themselves, as per usual.

Meanwhile, people who have NOT screwed around financially, who've played by the rules are in danger of losing so much of what they've worked so HARD for. I am thinking of my brother right now, who owns a business which is poised to really take OFF. Orders for his products are better than last year; he has some very heavy hitters in his industry who have submitted orders that could really help his business take off. Yet he faces the bankruptcy of his business. Why? The S.O.B.s in the banking industry are not providing the revolving credit to businesses one month in advance of revenues, as they used to do. That is how business has been done. Not now though. They've gotten taxpayer funds, but are hanging onto the money themselves as already mentioned and people like my brother; always a fair and honest businessman who treats his employees and customers VERY well, is facing a total drubbing.

THIS SHOULD BE ILLEGAL! I'll be looking for ways to put pressure on lawmakers about this; if any of you know of an organized effort to do so, let me know!