Where Obama Gets His Ideas

Here is some free advice to any any journalist who might be reading this blog: President Obama and his crew are policy wonks. So if you want to know what they are thinking, read magazines like the American Prospect, the Nation, the New Republic, and Democracy.

 

As an example, on Jay Leno’s show last night Obama said, “When you buy a toaster, if it explodes in your face there’s a law that says your toasters need to be safe.  But when you get a credit card, or you get a mortgage, there’s no law on the books that says if that explodes in your face financially, somehow you’re going to be protected.”

 

He was echoing very closely the ideas found in Elizabeth Warren’s article “Unsafe At Any Rate” in the Summer 2007 issue of Democracy. Warrant’s article begins, “It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street-and the mortgage won’t even carry a disclosure of that fact to the homeowner.” (You need to register to read the full article, but registration is free and Democracy is very much worth reading).

One thought on “Where Obama Gets His Ideas

  1. I did exactly what financial advisor Obama suggested. I applied for a refinance, paid $550 for an appraisal, only to be told that my home is only worth $230,000.
    I purchased my home for $300,000 in 2005 with $100,000 down at 6.8%. Because my home is only worth $230,000 now in order to qualifty for the refinance I would have to purchase mortgage insurance. So a refinance that will cost me almost $5000 will only save me $44 a month because of the additional cost of the mortgage insurance.
    My husband and I did not purchase a home we could not afford, but because of state budget cuts my husband was forced to take a 30% pay reduction and I lost my job. We are social workers (or were).
    Because I had to pay for the appraisal, I might not be able to afford my mortgage payment this month.
    I do not qualifty for his housing plan because my loan is not backed my fannie mae or freddie mac.
    If Obama really wanted to help us out he would force lenders to reduce rates to 4.5% on existing loans, avoiding the cost of a refi.
    It appears that Obama just wants us middle class taxpayers to continue to support the institutions that got us into this mess and give them billions of our money.
    Pray for me.

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