Beyond Reach of Relief
As the mortgage crises deepened, one mortgage-relief program after another popped up as fast as rooftops used to in the Inland Empire.
All those programs sure make Congress and everybody feel good, knowing that they’re helping distressed homeowners stay put.
But lately, articles have appeared saying that lots of those homeowners essentially are treating the programs like door-to-door salesmen, saying “no thank you” and slamming the door shut before they even hear the pitch.
Frustrated lenders are trying harder to entice stressed borrowers to take a good deal. IndyMac Federal Bank and the Federal Deposit Insurance Corp., which now runs it, recently held walk-in counseling session in Van Nuys and is set to hold another in the Inland Empire so they could hawk IndyMac’s aggressive loan modification program.
Why are the drowning homeowners so reluctant to grasp at the straw of the various mortgage-relief programs?
Dispatch to incoming freshmen legislators: Ask ‘Why not California?’
Freshmen: Welcome to the hub of policy for the 7th largest country in the world. We don’t envy your position, given the mess that has been left to you by so many previous classes, but you have an opportunity to make economic growth a catalyst of your tenure in the State Capitol. Specifically, your determination can make California a beacon for the high wage and middle class jobs that produce goods in today’s exceedingly competitive marketplace. As you proceed in your new endeavor, think of long term empowerment for California so this state will never again have to consider the deep cuts and other revenue enhancements that, undoubtedly, you’ll be forced to ponder for short term fixes.
Signs of the Times
Yields on the 10-year Treasury note and 30-year bond hit their lowest points in 50 years on Thursday. Oil prices fell for the sixth month in a row. AT&T announced that 12,000 people, 4% of its workforce, have no more jobs, just in time for Christmas. The number of people in the US receiving unemployment benefits hit a 25-year high.
Retail sales, except Costco (up 5% year over year) crashed and burned in November. A share of Ford stock won’t buy three songs on ITunes and GM’s stock, per share, will just get you just over four songs. US AutoMakers’ CEO’s were back panhandling Congress, one making a reported $50 million per year, this for losing Billions, over and over again, all now willing to work for $1 per year if Congress will let loose those $34 or 35 Billion they now want. Chrysler and GM said they might not make it long enough to sing Auld Lang Syne this New Year’s Eve if they don’t get those Billions right now.