America’s economic crash was caused by financial industry middlemen. They sold hundreds of mortgage-backed investment scams to pension funds, 401k managers, municipalities, non-profit endowments, and international investors like small towns in Europe. The investment scams, bonds based on fraudulent ratings and assurances of soundness, seemed to be a safe, secure a way to earn money. In reality, these investment scams were, and remain, a complex fraud that gravely harmed the families with deeply underwater mortgages and the bond investors.. The middlemen made, and continue to make, a bundle in fees while shifting costs and accountability on to other parties; homeowners, investors, municipalities which are crushed by the plummet in property tax revenue caused by the crash of property values.
This massive financial fraud lead to many of the nation’s current ills; the bailout, 39% decline in net worth, increase in poverty. and of course the foreclosure fraud crisis. Governor Romney and President Obama have not addressed the true cause and effect of the financial crisis nor have the Democratic and Republican parties offered any meaningful campaign platforms. The one candidate to prioritize this issue to a level commiserate with the harm done to the American people is a practically unknown Green Party candidate, Jill Stein. Ms. Stein was recently arrested protesting Fannie Mae foreclosures. She chose as her running mate Cheri Honkala who, last year, ran an unsuccessful campaign for Philadelphia Sheriff during which she promised to halt evictions based on fraudulent foreclosures.
Grassroots citizens groups are gathering momentum in hopes of forcing the major party candidates to address this issues. Signs of this can be seen New Bottom Line campaign called Home Is Where the Vote Is to mobilize underwater homeowners as a political force and, in another development, protesters traveled this week to the Democratic National Convention to voice their deep concerns. One of the DNC housing crisis protesters summed up his views, which are echoed by millions of his fellow Americans, “I’m actually quite disgusted with both parties. I think they’re captive of the big banks and the financial interests of this country.”
Read more at Democratic Convention Draws Troubled Homeowners at NPR.org here.
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