Welcome to Part 2. If you were confused as to the direction I was headed last week, let me help you understand with these final thoughts on the problem at hand that many Americans are facing.

Is our Government doing everything it can?

The American Government is so complex that I will not even try to explain some of the many tasks that it has to take on, if I even fully understand them myself, but one thing is for sure, if our economy is flowing strong, the American people are confident which leads to a happy society to put it simply.

The American economy in my opinion, has started to get out of hand since the Tech Boom of the late 1990s  and has continued to down slide ever since. Wall Street has had its major challenges with not just the United States investors, but with the rest of the World as well that have gambled on our rising corporate infrastructure, and the banking industry has played a major role in the down turn that we are facing right now.

In our Government’s defense, it has certainly tried to avoid the situation we are all in as far as mortgage foreclosures and the escalating unemployment rate, but are the right plans of relief in place to better our future?

Which is more important?

Do we vote to save Wall Street or save the American people? Of course the majority would say to save the American people but unfortunately, Wall Street is one of the major reasons that we have the opportunity to live a prosperous life in most cases but there has to be a happy medium.

Programs launched by the Government such as the EESA program (Emergency Economic Stabilization Act), and TARP (Troubled Asset Relief Program) were without a doubt, geared towards the relief of banking institutions that directly affect Wall Street. The EESA some say was a bust and is now winding down to a close but The TARP program is very much alive.

In my opinion, the TARP program was a needed program, and I do admire the direction that Barack Obama is currently going in with his plan to take left over monies and put it in to highways, bridges and small business loans to create more jobs in America but I believe that an added statement to that plan announced by President Barack Obama should be; and now that the banking industry is taking a positive turn, it is time to focus on the American people now with a direct positive focus towards the program that was designed to relieve the current mortgage pressures!

What is the HAMP program?

The HAMP program (Home Affordable Mortgage Program) was designed to help people with their mortgage woes as far as modifying mortgage loans and/or lowering monthly payments to survive the financial storm that they were, or are in currently. Participating banks and mortgage lenders, which took Government bailout monies, agreed to give people a chance to get out our their mortgage debt and the plan made claims that the target was to help 4-5 million people.

Elizabeth Warren, who is a Harvard Law professor-turned-crusader for Main Street who shares company to a growing list of experts, is calling for the Obama administration to scrap its failed foreclosure-prevention plan in favor of one that would actually help troubled homeowners keep their homes.

She has recently made stabbing statements that the current HAMP program has only helped a little over 10,000 people successfully modify their mortgages permanently which is only a little under 5% in the first three (3) month trial plans Nationwide from the original estimated target goal.

I believe the reason for this is because the participating banks had no intention to truly help the people for fear of risking their own bottom line.

I have personally have spoken with a few people that have gone through these so-called loan modifications, and they tell me that if your income or credit profile has changed that you would be turned down which was the case with them.

Well doesn’t it make sense that if you are late on your mortgage that you are going through a financial crisis, that your credit profile would in fact be blemished?

I do have to ask, what was the purpose of the HAMP program then?

What do we really need to cure this economic problem in my opinion?

As far as the banks:

It’s not like the banks willingly helped the people, they got paid, so I think the Government should modify their own plan and force these banks to exercise the loan modification program to truly help people to get their money’s worth!

The estimated numbers for foreclosure is expected to rise to over 8 million in the next few years and that will truly hurt!

As far as our Government:

I do admire the attention that Barack Obama has given this as far as his new jobs program, and again, I think he is on the right track by using left over TARP monies to create new jobs and to have money to lend to small businesses but is that enough?

I did like one thing that John McCain said in his campaign trail which was; lower taxes for the American businesses so that they can afford to stay in business and do better things for their future and their employee’s future!

Is this a possible supplement to the lending that would possibly allow these businesses to stay in business?

President Barack Obama said that it is time for Change, so I do hope that he continues this fight and realizes some of main ingredients to accomplish this, and to get our Country back on track! END

As always, your comments and feedback are welcome!

Cya next time!

Ricky Z.