LAS VEGAS — President Obama unveiled a $1.5 billion program to aid the states hardest hit by the foreclosure crisis, a small but targeted effort to address a housing problem that continues to resist government solutions.
The program, which administration officials called an "innovation fund," is modest in size and reach and comes as the administration's chief foreclosure-prevention program faces criticism for not doing more to help borrowers.
Speaking to the Las Vegas Chamber of Commerce, Obama said the program would allow states to find new ways to help struggling homeowners. "That means that here in Nevada, we're going to be able to prevent some foreclosures that otherwise would have happened," he said Friday afternoon. "The goal is to target communities at the center of the crisis and to empower local agencies that know these communities best."
Obama made the same promise at a town hall meeting earlier in the day, telling about 1,700 people in Henderson, a suburb near Las Vegas, that "government has a responsibility to help deal with this problem."
VH: Here we go again. The Federal government riding the white horse over the hill to "help" out distressed homeowners. So instead of letting these bad investments go quickly to bankruptcy and clearing out the housing market, we have a vain attempt to prop up a market that shows very little signs of improvement. I don't see how this helps people who, after this small injection of public funds, will most likely lose their homes because they can't find a job or the value of their homes are much lower than what they are shelling out each month in mortgage payments. The irony in all this is that it was the Federal government that led all of these poor people down this path of destruction by implementing all sorts of "affordable housing" incentives. If the Feds want affordable housing now and they want a quick recovery of the housing market, why not let prices drop to their equilibrium? Instead, we get more public funds thrown at lost causes.