Citigroup Regroups Amid Increasing Mortgage Woes
Amid increasing turmoil, the financial sectors continue to get battered with ever worsening statistics, facts, and losses. Even once steadfast companies like Citigroup are seeing lines of of defaulting homeowners looking around for help and their share of the bailout. In what may be good news for some of these homeowners, Citigroup has announced that they are putting a temporary moratorium on foreclosures for all clients who are willing to work in good faith to restructure and repay their mortgages.
Some experts contend, and I would assume that they are correct, that the 158 year old Citigroup is simply postponing the inevitible if things don’t change in the economy as a whole. Of course, it will curb the ever increasing number of foreclosures, but until the underlying problems get resolved its impossible to know what the long-term benefits of this halt will be.
From my chair, the government’s bailout (still be referred to as only $700 billion) is focusing too much on bailing out the financial institutions, which isn’t going to help the economy or, as is becoming increasingly obvious, the average American family. People can’t get loans, jobs are being lost, and there is a tremendous amount of fear about what is going to come next. The Mortgage Bankers’ Association recently revealed that 4 million borrows are at least one payment behind and 500,000 are in the process of losing their home. These are the people that should be benefiting from government intervention. It’s not going to fix the banks or solve their problems, but it will certainly save homes and families while benefiting the economy as a whole.
Unfortunately, that’s a lot more work, and we already know how the government feels about work. It’s much easier to sit back and help your cronies so you can keep your dead-wood-ass in office to continue bilking the American public of their hard earned money.
Ranter
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