Similarities Between the Foreclosure and Unemployment Problems
Similarities Between the Foreclosure and Unemployment Problems
Two things are dominating the minds of the voters their houses and their jobs. Pollster Peter Hart commented that in many ways there were similarities between the foreclosure and the unemployment problems. 90% of the Americans have jobs and over 90% are current on their mortgage dues. But the real problem is the ripples caused by the pebbles of uncertainty and fear. Any moment the sword of Damocles might fall on anyone.
Most of those from the Democratic camp who advise Obama have managed to stay more or less neutral because the ballot is not his or her concern their focus is on the economic recovery. But veterans in politics said that Obama should display more sympathy towards the foreclosure victims.
Hart said that Bill Clinton who was formerly the president during the boom of the 90s is suddenly in great demand by campaigners because he had once said that he felt the pain of the common man. Hart explained, "It is not that Bill Clinton is an embodiment of good times, but that (he) understands the toughness of the bad times".
Obama and the leader of the majority in the House Reid represent the two extreme poles of opinion among the Democrats. Reid is seeking to be re-elected from Nevada where one sixth of the borrowers were defaulting on their house mortgage towards the close of 2009. Out of every 17 houses one was in foreclosure during the first six months of 2010. Over half the sale of residences, during the quarter starting from July 2010, came from the distressed category.
There can be no doubt that the foreclosure issue is one of the biggest during these elections. The most important task ahead is to stop these foreclosures. None of the parties want to show that they are siding with the banks. Thus it is not surprising that Reid wants a blanket ban on foreclosures right through the country.
Earlier in October he had said, "It is only fair to Nevada Homeowners to suspend foreclosures until a thorough review of foreclosure process is completed". Others among the Democrats have called for bans for the time being.
In contrast President Obama and his government officials are focusing on the risk to the economy, the localities and the sellers of houses if such a moratorium on foreclosures is imposed. If foreclosures are frozen private investors get hit during the heydays they churned the wheels of the property market by purchasing mortgage backed securities. But for the last two years they have been absent.