Los Angeles Personal Injury Lawyer - Barack Obama

Biden to Focus on Economy, Housing Crisis, Foreign Policy and Life Story at Convention Tonight

Paul Kiesel — Wed, 27 Aug 2008 15:05:21 GMT

During a Democratic primary debate, in August, 2007, Joe Biden saw what many others didn't see or realize until months later: The credit crunch was running so deep -- it could effect several sectors of the economy -- that Biden predicted it would be more disastrous on the U.S. and even the global economy than the savings-and-loan debacle of the 1980s and early 1990s.

According to The Wall Street Journal, Biden said the then-nascent credit crunch was "almost as deep in terms of dollars, not liability, as the savings-and-loan crisis."

Biden went on to say in another 2007 debate that hedge funds and private-equity funds were to blame for the credit crunch. "We need more transparency, particularly with regard to hedge funds. They are the ones that are causing this thing to go under. And there's no transparency, no accountability. We don't know how deep this problem is." But Biden had a sneaky suspicion it was deep.

Tonight, Biden is the main speaker at the Democratic Convention, following a speech by President Bill Clinton. Both political heavyweights will focus on foreign policy at first, but it is expected that Biden and Clinton will also speak candidly on the economy, its continued struggles, the housing crisis, and what steps are appropriate to get the country out if this economic contraction/recession (depending on which economist you ask).

Biden is then likely to talk about his personal tragedies and triumphs, which should cap off a rather erudite and entertaining speech.

Originally posted at InjuryBoard by Paul Kiesel

Democratic Convention to Focus on Hillary Clinton and Economy Tonight, Vice Presidential Nominee Joe Biden Stops by a Forum on Women's Issues and Economy

Paul Kiesel — Tue, 26 Aug 2008 19:55:30 GMT

Tonight's focus and theme at the Democratic Convention shifts to Hillary's anticipated speech and the economy. Hillary's speech is what many will be tuning in to watch or listen to; the several pontifications on the economy (except within circles of political junkies) are likely to be afterthoughts at the water cooler tomorrow morning.

However, those economic issues will rise to the forefront of the presidential election in the coming weeks -- the economy will be the centerpiece of at least the Democrats or Republicans campaign strategies, if not both -- and, therefore, it is important that anyone tuning into the Convention tonight to pay attention to the people speaking on the economy, particularly those speaking on the housing crisis.

Campaigning in Davenport, Iowa Monday, Barack Obama spoke on the trials and tribulations that Fannie Mae and Freddie Mac are facing. Obama told the audience that he backed a potential government bailout, saying that the firms cannot fail. (To note: as the election season heats up and has heated up in the past two weeks, and parallel to that fervor the housing crisis -- news of it -- has somewhat subsided since the housing rescue bill was passed last month, there has been less focus on housing issues, even though many housing/mortgage problems continue to permeate the wounded economy and some are yet to occur.)

The Wall Street Journal quoted Obama saying, "As president, I don't think we can allow Fannie Mae and Freddie Mac to collapse [. . .] I'd like to punish them for their bad decisions. But the problem is they're too (big) right now not to cause more damage."

Obama's right. Not only should Fannie and Freddie be punished, among other lenders who participated in the mortgage debacle irresponsibly, but, unfortunately, at this point in time, Americans need the two mortgage giants to function properly, and punishing them will ultimately punish taxpaying Americans. The lenders and brokerages responsible for the subprime mortgage crisis, who willfully went out into the market and shopped loans with several TILA violations (as proved by the many Attorneys General who have filed lawsuits against lenders like Countrywide, IndyMac, World Savings, etc.) will eventually get their comeuppance.

The Wall Street Journal points out that, "The housing market has been a major topic for Democrats, who successfully enacted a massive foreclosure prevention bill and other housing measures before Congress adjourned for the August recess. It's the subject of numerous events in Denver [. . .]" (WSJ.com, 8/26/08).

If anyone is in Denver this week, pay attention to the several events that are focused mainly on the economy, as that is likely to be an issue of importance to anybody, Democrat or Republican, in the Mile High City. There are several housing-related forums that are scheduled throughout the week, including events sponsored by the National Association of Home Builders and other financial services groups. And who knows the guests that might drop by unannounced to one of these forums, as evidenced by Joe Biden's surprise appearance at a roundtable discussion of women’s issues and the economy earlier today.

Originally posted at InjuryBoard by Paul Kiesel

Obama and McCain: The Presidential Candidates on the Mortgage Crisis

Paul Kiesel — Tue, 17 Jun 2008 13:50:12 GMT

Here are Barack Obama's and John McCain's plans for dealing with the mortgage crisis (according to each candidate's respective website):

Barack Obama wants to create a fund to help people refinance their mortgages and provide comprehensive support to innocent homeowners. The fund will be partially paid for by Sen. Obama's increased penalties on lenders who act irresponsibly and commit fraud.

On top of this, Sen. Obama will create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.

After seeing what took place in the subprime mortgage industry, Sen. Obama introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices. Sen. Obama's STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for federal and state law enforcement programs, creates new criminal penalties for mortgage professionals found guilty of fraud, and requires industry insiders to report suspicious activity.

Sen. Obama will also create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan.

John McCain, after saying for months that he didn't want the government to intervene in the housing crisis, has recently come up with a housing relief plan called HOME Plan. Under his HOME Plan, every deserving American family or homeowner will be afforded the opportunity to trade a burdensome mortgage for a manageable loan that reflects their home's market value.

In order to be eligible, holders of a non-conventional mortgage taken after 2005 who live in their home (primary residence only); can prove creditworthiness at the time of the original loan; are either delinquent, in arrears on payments, facing a reset or otherwise demonstrate that they will be unable to continue to meet their mortgage obligations; and can meet the terms of a new 30-year fixed-rate mortgage on the existing home.

John McCain has also recently called for the formation of a task force within the Justice Department to combat mortgage fraud, but this has already been in the works for sometime. Sen. McCain's proposal suggests that the task force's primary duty will be to aggressively investigate potential criminal wrongdoing in the mortgage industry and bring to justice any who violated the law. The DOJ Task Force will offer assistance to State Attorneys General who are investigating abusive lending practices. (The FBI has also increased their efforts two, if not, three fold over the last 90 days.)

Originally posted at InjuryBoard by Paul Kiesel

McCain Will Not Fix Foreclosure Crisis

Paul Kiesel — Tue, 27 May 2008 19:14:46 GMT

Senators Barack Obama and Hillary Clinton have been outspoken critics of John McCain's foreclosure remedies on their respective campaign trails, saying that Sen. McCain would be lackadaisical in his approach to correct the market, regulate banks, and help troubled borrowers. This afternoon, those sentiments continued to be heard from the Obama camp as Sen. Obama told a crowd of over a hundred homeowners his plans to help fight the foreclosure crisis.

His opinions ranged from support of both Barney Frank's and Chris Dodd's housing bills, to pleading to lenders and asking them to make a better effort in negotiating new loans with borrowers. Here are excerpts of Obama's speech from earlier today in Nevada (The Washington Post, 5/27/08):

"Nevada is being hit just about harder than any place in the country when it comes to people being able to stay in their homes," Obama said. According to figures compiled by the campaign, the Silver State's foreclosure rate is three-and-a-half times the national average, and one in 44 households in Las Vegas is facing foreclosure."

"Today, John McCain is having a different kind of meeting," Obama said during a town meeting at the College of Southern Nevada. "He's holding a fundraiser with George Bush behind closed doors in Arizona. No cameras. No reporters. And we all know why. Senator McCain doesn't want to be seen, hat-in-hand, with the President whose failed policies he promises to continue for another four years."

ON JOHN MCCAIN AND GEORGE W. BUSH:

"We've got a vicious circle," Obama said, pitching a package of measures aimed at stabilizing the housing market, so that banks and lenders feel they can loosen credit. Obama supports the measure co-sponsored by Sen. Chris Dodd and Rep. Barney Frank that would permit some homeowners to negotiate with lenders to convert existing mortgages to new, fixed-rate loans that will allow them to avoid foreclosure. He also suggested a new fund for low income housing, and changes in bankruptcy laws that now favor those wealthy enough to have second homes."

"If the government can bail out investment banks on Wall Street," he said, in another swipe at Bush, it should help working people who signed mortgages promoted by lenders "out to make a quick buck."

In other words, as McCain goes behind closed-doors with President Bush, who currently stands as having the highest disapproval rating in the history of the United States, and tries to garner more campaign money from dubious sources, Sens. Obama and Clinton are continuing to try and find common ground in order to help the people who have been affected most by the mortgage crisis: middle- and working-class Americans, who will make their opinions loud and clear when they vote this coming November.

Originally posted at InjuryBoard by Paul Kiesel