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Jun 13th, 2008 @ 4:00 PM by Alden Smith

If you believe that the mortgage companies and all concerned are making any kind of dent in the current crisis, then I have some ocean front property in New Mexico you may be interested in.  My research today shows that mortgage foreclosures are up almost 50% from where they were a year ago, with no end currently in sight.  It is my belief that no one person or entity is to blame for our current situation.  My only REAL concern is how we manage to pull ourselves out of it.

Hope Now, the Bush administration backed coalition that is supposedly doing a good job of helping out those in distress is drawing sharp criticism for many quarters.  It’s quite obvious when you see that any relief being provided – if any at all – is not keeping up with the current rate of foreclosure seen today.  Allen Fishbein, director of credit and housing policy at the Consumer Federation of America, said “It’s clear that these voluntary efforts in and of themselves cannot really make a dent. Government intervention is going to be necessary.”  And Mark Zandi, chief economist of Moody’s Economy.com wrote earlier this week that “the Bush administration’s efforts to encourage loan modifications and delay foreclosures are being completely overwhelmed.”  As we have said before, there is really no one good solution.

It has been reported by Credit Suisse that 6.5 million loans will fall into foreclosure over the next five years.  And I do not see anything, unless it is a very drastic measure, that will change or stop that.  We, as a nation of capitalists, have to take our lumps and then try to move on.  It is a pity that so many people will lose their homes, have their credit ruined, and see a hard row to hoe on the horizon.  I have to agree with Rep. Barney Frank, D-Mass, who says much more aggressive action needs to be taken.  How we accomplish that action remains to be seen.