Wednesday, February 18, 2009
Obama's Mortgage Plan Isn't Enough
President Obama's plan to stimulate the housing market is a good one. But the $75 billion earmarked is not nearly enough money to make a dent.
That, at least, is the opinion of Dedrick Muhammad, my guest today on News Talk Online on Paltalk.com.
Muhammad, senior organizer and research associate for the Program on Inequality and the Common Good at the Institute for Policy Studies says the mortgage relief program "will help soften the impact" of the recession. But, he adds, "I don't believe it will stabilize the housing market."
Several callers expressed concern that the plan seems to address, mainly, the middle class. What, they asked, of poor homeowners?
Muhammad says, the reality is, with the exception of rural areas, most poor people are renters.
He particularly likes the portion of the plan which gives bounties to people who arrange loans between borrowers and lending institutions. "They are giving a profit motive," he says, "to restructure an affordable loan."