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Democratic Presidential candidate Barack Obama is in town for a pair of stops today, his first visit since the the days leading up to the January caucus.
His first stop: to Northeast Las Vegas, where he discussed the foreclosure crisis with Felicitas Rosel and Francisco Cano. The couple, who are Culinary members employed at the Bellagio, are struggling to make payments on their adjustable-rate home mortgage.
Obama told them that he is working to pass legislation to help people like them renegotiate their mortgages with the Federal Housing Authority.
He said the problem was caused by lack of regulation.
Obama has now motorcaded to College of Southern Nevada, where he'll be holding a town-hall meeting before an invitation-only audience.
If there's been any news so far, it's that Las Vegas motorists need to get used to the sight of police-escorted motorcades. This morning, motorists -- unwitting or not -- worked their ways into the line of VIP vehicles and had to be shooed away by cops.
We'll be seeing more of these motorcades because of Nevada's importance in the presidential race, so get used to it, folks.
On May 27, 2008, in Las Vegas Obama said “But the question for the American people is: do we want to continue George Bush’s policies? … I don’t think the American people want to continue the disastrous economic policies that have helped create catastrophes like the housing crisis that we’re here to discuss today. …”
What “Policy” is Obama talking about? Bush and McCain do not have a policy calling for foreclosures. Policies are a deliberate plan of action to guide decisions and achieve rational outcome(s).
So what have Obama and Congress done? Congress is always passing laws based on last year’s problems and this year’s election. Three-fourth of the way thorough a foreclosure crisis, Congress has yet to act to address the underlying cause. The Democratic Congressional Mortgage proposal is too complicated and expensive for the everyday homeowner to take advantage of a FHA backed loan. The FHA, Lenders and Owners will share any future appreciation and extra points are going to the FHA. Hedge fund managers and arbitrageur will be able to break this program as they have in the past (brokers scamming owners’ actual income and guiding them to higher commission mortgages). The FBI opened 46,717 mortgage fraud cases in 2007. George Soros’ “reflectivity theory” embraces the fact that individuals in trying to make sense out of the world inevitably make bad decisions. These bad decisions reflexively feed on themselves and that causes extremely results.
Congress has continued to require that all their actionable decisions be made on a static behaviorism bases. This is also strikingly true with the unintended consequences of tax policy, giveaways, and such laws as the Community Reinvestment Act (CRA). The SEC forced SunTrust Banks, in 1998, to restate financials with regard to holding more the one year’s worth of reserve, effectively causing them to reduce reserves to a limit of one year. The central bankers in Basel in 1988, agreed to worldwide reserves standards, and updated them in Basel in 1999, with no positive result. In economics generally most of the people maintain an even outlook of a pay as you going and establishing a reasonable quality of life environment based on what they earn. But at both ends of this spectrum we have those who either are overly greedy or are overly extended. Homeowner behavior is such that willingness to repay their mortgage is coupled to their house price.
Oh, Mort. Do your homework. Time for you to look in to John McCain's lobbying issue tied to Phil Gramm! LOL! http://www.youtube.com/watch?v=9LWU3V5JT...