09-16-2009, 01:26 PM
Doc wrote:
[quote=mattkime]
the confounded bailout is why the economy is doing as well as it is.
Other stuff like extending unemployment benefits, Cash for Clunkers and Making Home Affordable have been more helpful and are likely to produce greater public benefits throughout the recession and recovery.
I agree with you, but take exception with the Making Home Affordable plan. I am for that program, but it has not been executed well. It has helped less than 10% of the people it was supposed to.
The government gave the banks almost $80 billion for this program, but as far as I know there were no requirements that the banks use all of this money to modify loans or refinance for responsible homeowners, nor were there any penalties if they effectively did nothing as they appear to be doing.
There is no incentive for these banks to refinance the loans of people that have not been late with payments. They won't do it. They are dragging their feet until rates rise to the point that no one will want to refinance anymore. Then they'll have their excuse for why they managed to help only 400,000 homes instead of the 5 million intended.