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[http://www.businessweek.com/news/2010-10-15/washington-resists-calls-for-big-fix-on-foreclosures.html]
Washington Resists Calls for Big Fix on Foreclosures - BusinessWeek
Here's another example of the administration closing the barn door
after the cows are out. If they had gone with the so-called "bad bank"
idea from the beginning, this current problem might not even exist.
With a bad-bank, they could have bought up the troubled mortgage assets
for less than they were worth (but more than what the bank would have
gotten through foreclosure), refinanced so the owners could at least
try to stay in their homes and then sold them back to the industry once
the market had stabilized. Possibly even for a profit. Instead they
threw that seven-trillion dollars at the bankers and shouted, "YOU FIX
IT!" Predictably, throwing wads of cash at the very people who
bankrupted the system didn't really accomplish much. So now, when faced
with the real-world consequences of this melt-down, the administration
has precious little room to maneuver. Of course, the fact that the
seven-trillion dollar TARP program was Bush's swan song might lead
conspiracy theorists to think this is just want the bankers wanted. But
Obama had a ample chance to stop it. Instead, he chose to trust the
bankers. Let's hope that TARP turns out to be Obama's Bay of Pigs - a
crisis from which he'll emerge a stronger president. Just don't emulate
JFK too closely, please.

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