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Edwards on the mortage mess

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Just one day before Senator Obama gave his misguided opinion on the mortgage mess another Democratic hopeful had come to the fore with his own opinion. (By the way, you’ve got to love electoral years because those are the only years politicians have even the pretense of caring for the issues that affect their constituencies.)

Instead of writing an article on a financial newspaper, Senator Edwards gave his position to a crowd of about 100 at Rochester Common. He simply proposed a “national home rescue fund”. Since this was all that he said, it’s pretty hard to figure out what he really meant, or how he expects to go about it. My guess is that neither he knows because according to the Democratic article “Edwards didn’t promise to solve all of the issues, calling such talk a ‘fantasy’.”

One of the most interesting comments about the foreclosure problem came from an accounting professor and not a candidate. Lynn Turner, former Chief Accountant of the Securities and Exchange Commission, said in an Business Week interview, that “None of the proposals that are being offered address what was the root cause of the problem and it is likely to reoccur.” I must say a concur wholeheartedly with what Mr. Turner had to say, above all, because he made a harsh question I am asking myself: “Why aren’t the Dems questioning Wall Street?”

As I said yesterday on my short note about Obama’s position, it is not the small mortgage brokers they should go after (if they decide to go after somebody) but Wall Street itself. Although the foreclosure issue (which is only the reflection of the drive of Wall Street to concentrate real estate in the hands of the wealthy few) promises to be a hot topic during the presidential campaign, candidates should be aware than anything short than addressing the core of the problem will leave any proposed measures in the realm of the fantasy.

Franklin @ August 30, 2007

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