I am glad Sen. Obama is flexible to reconsider ......
by indydem99, Tue Oct 14, 2008 at 01:20:21 PM EDT
I was pleasantly surprised to see the "90-day moratorium on foreclosures" included in Sen. Obamas's proposal to fix the sub prime problem. He shows flexibility and is prepared to accept an idea which he rejected before. Pragmatism is a very important quality for a good leader.
For those who may not know what I am talking about here is some context: This is from LA times FEB 21 2008
Clinton's solution is a 90-day moratorium for foreclosures on sub-prime occupied homes, and a five-year rate freeze on sub-prime adjustable rate mortgages. The Bush administration has already responded with a 30-day cooling period on foreclosures; Clinton and her aides insist a longer freeze is essential for stabilizing a precarious situation for homeowners.
But according to some economists and officials grappling with the crisis, her proposal, which also offers a $30-billion foreclosure fund that is triple the size of Obama's, might only prolong the agony for homeowners.
"A 90-day freeze is fine for what it is, but what happens on the 91st day?" Rokakis asked. "Why not a year? Or longer?"
In San Antonio on Tuesday, Obama said that Clinton's foreclosure freeze was potentially "disastrous," rewarding "people who made this problem worse" by benefiting banks that profit from high mortgage rates.
A "blanket freeze," Obama added, might "drive rates through the roof for those trying to buy or refinance. Experts say the value of homes will fall even more, and even more families could face foreclosure."