Sheila Bair Criticizes Government Over Foreclosures

The Federal Deposit Insurance Corporation (FDIC) Chairman, Sheila Bair, recently criticized the Federal Government over its handling of the mortgage crisis.  In her opinion, the Federal Government failed to take the aggressive measures necessary to prevent foreclosures and keep families in their homes.

She believes that the government’s failure to handle the foreclosure problem at the borrower level is the root of the problem in our markets.  Ms. Bair was critical of both the President and the Congress.  Although she didn’t single anyone out, her criticisms were sharp and pointed.  She believes that more needs to be done to stem the wave of foreclosures.

Well, with all due respect to Ms. Bair, many other people have been saying the same thing.  As a matter of fact, I have been saying the same thing for quite some time.  Yet, our esteemed members of the House of Representatives and the Senate seem not to hear the cries of the people. It makes you wonder if we are still a democracy or not.

I agree with Ms. Bair’s line of thinking.  One of the major causes of the current problems in the United States is the tidal wave of foreclosures.  Yet, the President and Congress seem to forget the people facing foreclosure.  Each piece of legislation designed to help people in distress have made mortgage modifications voluntary.  How can this inaction be helpful?  The only real way to help people in distress is to allow them to modify their mortgages in the bankruptcy courts.  My friend and colleague, Jacksonville, Florida, Bankruptcy Attorney, Chip Parker, wrote an article today for the Bankruptcy Law Network, which broke down the flaws in the McCain economic plan.  It is definitely worth reading.  More on this topic will be published as we find out more details from the bailout plan.

Related posts:

1. Bailout Should Save Homes From Foreclosure
2. Government Response to the Mortgage Crisis
3. Should The Government Bail Out The Mortgage Mess? Renters Say No Way!