Bailout homeowners first (Dr. Nouriel Roubini)

[RedEarth]

The ever compelling Dr. Nouriel Roubini, the New York University economics professor predicted two years ago much of the financial turmoil we're currently experiencing. Dr. Doom, he was called by the New York Times.

But if federal policymakers had listened to him, perhaps we wouldn't be at the perilous state we're in right now, with the global financial system in turmoil and officials chasing after the problem in an attempt to keep it from further damaging the economy.

So what does Roubini think of the developing plan for the federal government to acquire the "toxic assets" on the balance sheets of the nation's financial institutions?

While he thinks massive federal action is needed, including helping institutions free themselves of the bad debt they're holding, he also believes what the feds priority should be to put people first, that is to first help distressed homeowners reduce their debt loads and in many instance avoid foreclosures. This is actually the most effective way to turn around the current situation, he says.

Here's an excerpt of a posting he has up today on the RGE Monitor website.

more............

http://www.swamppolitics.com/news/politics/blog/2008/09/bailout_homeowners_first_exper.html

[Carni]

1. What about those who already lost homes?

Not trying to be a smart ass here...but every time I hear about helping people to keep their homes I think about all the people I know who lost their homes a year ago (unfortunately I know a few)

It just seems unfair that some will receive help and get to keep their homes while others were tossed out of the streets because the government did nothing last year.

Any thoughts?