Did you really think Obama could fix the problem? – WorldNetDaily (WND) Market Commentary June 7, 2010Posted by Admin in Dan Mangru, Market Commentary.
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Did you really think Obama could fix the problem?
By Dan Mangru
Ronald Reagan once said that the 10 most dangerous words in the English language are, “Hi, I’m from the government and I’m here to help.”
Yet here we are, some 30 years later, listening to Obama’s administration feed us that same tired and dangerous line.
In February 2009, President Obama told us he’s taking “unprecedented” action to solve the mortgage/housing crisis in America (if you watch him he tends to say unprecedented a lot). He announced the $75 billion Making Homes Affordable plan to keep four million Americans in their home and fend off foreclosure.
At his urging, his administration also announced that the Federal Reserve was going to buy $1.25 trillion worth of mortgage-backed securities and that the U.S. Treasury also would kick in an additional $220 billion to buy some more of those mortgage-backed securities.
Obama argued that purchasing more mortgage-backed securities would free up capital for mortgage lenders and subsequently would improve the housing markets.
Now that over a year has gone by, let’s fast forward and let’s see how Obama has helped the situation. Out of those four million people that Obama was going to save with his government program, he only saved 295,348 with permanent loan modifications completed by April 30, according to the most recent numbers from the U.S. Treasury. That’s about 7 percent of his original goal. In other words, he 93 percent failed on that one.
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