Hillary Clinton’s Strong Comments On Foreclosures

In an important speech with economic ramifications Democrat Senator Hillary Clinton asked Wall Street to help effectively in ending the foreclosure catastrophe. It was part of her presidential campaign. She was speaking in New York at the Nasdaq Stock Exchange and said that millions across the country were left out of the fruits of economic success. The middle class is badly mauled by foreclosures. She accused Wall Street of kicking off the crisis and therefore it is Wall Street that should end it. It is not just a particular class but the entire economy has become pale, was her contention.

Of late Clinton has been harping more and more on the economy and the subject has gained prime importance in some key states. In the forthcoming campaign this seems to be her line of approach. Her speech on Wednesday was the most important of all those she has made so far. It is less than a month before the first leadership race starts off in Iowa and New Hampshire.

About half a million Americans have been issued foreclosure notices during the last quarter of this year. It is double the number of what it was a year ago. Since 2006 the housing market has been going down while foreclosures have risen. It is mainly those who took sub-prime loans who are affected. These loans had been foisted on those with poor credit during the time of the property boom. The ploy was to tempt borrowers with initial teaser rates. Foreclosures became inevitable when the interest rates began to reset at higher notches. More increases are in the offing and the country is gearing up to see more foreclosures.

Clinton qualified her statement by saying that perhaps Wall Street did not create the crisis but it definitely had a hand in making things worse. She said Wall Street shifted the risk from people who were fully aware of what was happening to those who did not.

Among the remedial measures she wanted the introduction of a moratorium of at least 90 days on foreclosures and to freeze the monthly scheduled rates for at least five years.

Treasury Secretary Paulson is about to announce his own plan of action on Thursday and in all likelihood it will involve freezing of rates. This will allow the borrowers sitting on the precipice to avoid foreclosure and opt for modification and refinancing.

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