The stock market is mired in a downward trajectory. Home values continue to plummet in many markets.
The government has invested or loaned billions of dollars to the financial sector and assumed trillions of dollars in obligations in the taxpayers’ name.
Despite all of this very little has been done to stabilize the housing market where much of the trouble began.
Millions of American families have or will lose their homes, yet we have no real plan to stop the bleeding.
No doubt some of the people who have or will lose their home deserve to do so because they played fast and loose with a financial system that was all too willing to accommodate them.
However, just as the financial sector was “too big” or “too important” to fail, it’s clear that the economy will not improve significantly until the housing sector is on the mend.
The problem, of course, is millions of individual homeowners are a logistical nightmare to address. It has been much easier to bail out a couple of huge firms that were incredibly stupid and irresponsible.
There are numerous agencies within the government that can help, but so far, there is no coordinated effort that is showing any signs of success.
It is typical of our Congressional leaders that they would rather hash out ideological nonsense than do something that would help people, even people who were reckless and irresponsible.
No problem helping companies that pay out billions in bonuses while taking taxpayer money, but pity the poor homeowner who has lost his or her job (millions and counting) because Congressional leaders don’t want their misbehavior rewarded.
The Federal Reserve Board has few tools left in its box of fixes, but if it can come up with a plan that will help keep families in their homes and work with other government agencies in a position to do the same, then maybe it will recover some of its credibility.
For all our sakes, here’s hoping someone in Washington is serious about actually helping struggling homeowners (here’s a hint: tax cuts are worthless to people drowning in debt).
