• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Geithner’s Plan and the New Reality of Shanty Towns

Treasury Secretary Timothy Geithner is back in the spotlight today. He’s scheduled to testify on Capitol Hill about his new plan for the government to greatly expand its oversight of the financial industry, included hedge funds. Geithner, of course, has been in the news a lot lately, as debate continues over his other plan, the one in which the government gives generous subsidies to investors to buy toxic assets from banks.

However, missing from the larger debate is the reality that a toxic asset — essentially, a piece of paper — wasn’t created out of thin air. This crisis started because of housing, and while that toxic asset may have been sliced and diced and sold around the globe — somewhere there’s still a house, with a mortgage, and maybe a family in distress, at the root of it.

Those foreclosed houses are driving down property values, creating neighborhood blight, and are piling up around the country. If you’ve got to live in a distressed neighborhood, a tent city, or a shanty town, what does the Geithner plan mean to you? I don’t know that answer, so I checked around with some of the housing experts I regularly talk to. Many didn’t reply right away, as they digested the Geithner plan, and some are still thinking about it.

But here’s Alan Mallach, a senior fellow at the National Housing Institute and the Brookings Institution. Mallach is the one who pointed out to TWI that in the Treasury Department’s view, they are dealing with paper, not people’s lives or neighborhoods. That holds true for Geither’s plan as well, Mallach wrote in an email. I had asked him whether Geithner’s plan makes much difference to people at the bottom.

From Mallach:

As far as I can tell, unless I am missing something, the short answer is no, period. Some investors may be better than the banks, but some may be worse – also, if they are buying bank shares in , rather than whole loans or 100% of the security, the investor will have no ability to modify the servicer contract already in place, or to influence the outcome – in the absence of a federal cudgel.

Don’t expect Geithner to take any questions about this today. When the stock market reacted well to the toxic asset idea, Geithner’s own stock rose. It’s also true that the Treasury Department and the Obama administration also have unveiled a housing rescue plan – but it doesn’t directly address bank-owned REOs or tackle the problem of vacant properties piling up.

The fact that housing is at the root of this crisis seems to be getting lost in the headlines, in the politics, and in the details of Geithner’s latest moves.

TWI is on Twitter. Follow us here.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.