Lending crisis: "Obama has staked out a position to the right of both Edwards and Clinton"

[bidenista]

Obama Is Sub-Prime on Lending Crisis

By Max Fraser, The Nation. Posted January 31, 2008.

Last year, forty-three states reported increased home foreclosure rates. Nevada led the way for eleven consecutive months; in Clark County, which includes Las Vegas, nearly one in twenty homes is in foreclosure. Whole blocks have been foreclosed in Chicago. Nationwide, rates are nearing Depression-era highs -- ravaging working- and middle-class neighborhoods that fell prey to the soft sell and outright chicanery of predatory lenders in the heyday of the housing boom. These lenders have targeted the most vulnerable -- black and Latino borrowers have been twice as likely to receive subprime loans as whites; female homeowners, 30 percent more likely than male; black women, five times more likely than white men.

As the subprime mortgage debacle drives a recession that threatens financial markets around the world, the Democratic presidential candidates are pushing plans to address the crisis. John Edwards and Hillary Clinton are pledging substantial federal resources to stabilize the mortgage market and intervene on behalf of borrowers. Barack Obama's proposal is tepid by comparison, short on aggressive government involvement and infused with conservative rhetoric about fiscal responsibility. As he has done on domestic issues like healthcare, job creation and energy policy, Obama is staking out a position to the right of not only populist Edwards but Clinton as well.

Edwards's plan includes a mandatory moratorium on foreclosures, a freeze on rising interest rates for at least seven years, federal subsidies to help homeowners keep up with payments and restructure loans, and explicit measures to rein in predatory lenders and regulate the financial sector. Clinton's plan is weaker -- a voluntary moratorium, a shorter freeze, less commitment to new regulations -- but she has promised $30 billion in federal aid to help reeling homeowners and communities. Only Obama has not called for a moratorium and interest-rate freeze. Though he has been a proponent of mortgage fraud legislation in the Senate, he has remained silent on further financial regulations. And much like his broader economic stimulus package, Obama's foreclosure plan mostly avoids direct government spending in favor of a tax credit for homeowners, which amounts to about $500 on average, beyond which only certain borrowers would be eligible for help from an additional fund.

More: http://www.alternet.org/election08/75489/

[NOVA_Dem]

1. Those house flippers shouldn't be bailed out.

They bought those houses to make a quick buck. They knew the terms and thought they would be able to sell them b4 the interest only portion of the loan was up. All these people did was drive up home prices for people who were responsible enough to wait. I shouldn't be forced to clean up the mistakes of amateur speculators. I make around 70K and can't afford to buy a stinkin' condo b/c of these people.

[Gman]

2. Another "present" vote for Obama

When will people figure out Obama is not what they want him to be.

[papau]

9. When will people figure out Obama is not what they want him to be.? - never -on DU

[Mojorabbit]

3. I want to know where the money

to bail out everybody is coming from. It is an enormous amount that is owed and this country is almost bankrupt as it is.

[NOVA_Dem]

6. What does that say for Hillary's claim that she wants to get back to fiscal responsibility?

Just more pandering. Let them go back to renting. They weren't ready to own homes in the first place.

[WilyWondr]

4. Sounds like GWB's plan?

You don’t often find Hillary Clinton and George W. Bush occupying the same political airspace, but that is exactly the situation on the subprime mortgage issue.....Hillary and George both have the same solution to the mortgage mess: a freeze on rates.

http://www.mortgagenewsdaily.com/1262007_Subprime_Rescue.asp

The plan, which was warmly received by many industry leaders attending the conference such as Fannie Mae President Daniel Mudd calls for a five year freeze of mortgage rate increases on so-called teaser rate loans.

Good luck.

[OHdem10]

5. On Health Care, Mortgage Crisis--every issue He has left

himself wiggle room for GOP Approval.

Health Care--No Mandates is GOP Talking Point.

This is the DLC practice.

[OzarkDem]

7. Edwards supporters should NOT vote for him then

The reason we liked Edwards was because of his policies. There's no need to sell out because he's left the race.

[Prefer]

8. Yes, clear Bill Clintonness

IS Hillary doing the same?