Bernanke: Foreclosure woes require action

Source: CNN

"Price declines have become one of the biggest contributors to high default rates, Fed chief says. Stopping foreclosures is in 'everybody's interest.'"

"NEW YORK (CNNMoney.com) -- The wave of foreclosures sweeping the nation are driven in part by a nearly unprecedented decline in home prices and require a concerted government and private-sector response, Ben Bernanke, chairman of the Federal Reserve, said Monday.

"Realistic public- and private-sector policies must take into account the fact that traditional foreclosure avoidance strategies may not always work well in the current environment," Bernanke said in a speech before the Columbia School of Business."

Well... I have only one thing to say... Bernanke in a couple of seminars said there were typical high school questions being asked of him... Here's something he just does not get... there are many people that literally robbed the banking industry... It is not that they did not understand that they were getting into mortgages they could not afford to repay... the strategy was to cash-out refinance till it could be done and then throw the keys to the bank. Unfortunately he is just one of those Ivy league school people that just doesn't get how it works in the real world. There was absolutely no intention to repay and the banks played along making their little commissions along the way. Now the federal reserve wants to jump in with tax payer funds to buy all the toxic junk that will never be repaid - I'm not sure what Bernanke thinks he's trying to do and with all due respect... he needs to get out more often in the real world and see how much people made in the past couple of years and stop trying to figure out how to use tax payer funds to keep the party going.... we have other institutions such as social security that needs it's own bail out - the wall street firms will all be fine (a few less or all broke will absolutely not make much difference).

As regards getting the genuine people out of the debt burden... the sooner they are free the faster the economy can recover - it's our social responsibility to free the ones that are put into a debt trap they were not supposed to be in - be it by way of foreclosures of bankruptcy - trying to make them get crushed under the debt burden will only bring more pain and suffering across the board - it's better for investors to lose rather than to enslave the entire economy to the investor. The federal regulators did absolutely nothing when crazy things were going on in the housing market so they have a lot of blame to share.