Obama Jobs Speech Must Address Foreclosures, Small Business, Greenlining Institute Argues

[Better Believe It]

FOR IMMEDIATE RELEASE
September 8, 2011
Bruce Mirken,
Media Relations Coordinator,
510-926-4022

Obama Jobs Speech Must Address Foreclosures, Small Business
Economy Can’t Be Fixed Without Plan to Keep People in Their Homes, Stabilize Housing Market, Greenlining Institute Argues

WASHINGTON - September 8 - President Obama’s much-anticipated jobs speech will be incomplete if the president fails to include a plan to grapple with the ongoing foreclosure crisis and stabilize the housing market, policy experts at The Greenlining Institute said today.

“The ideas being talked about, like infrastructure spending and tax cuts, may help, but they can’t do the job by themselves,” said Greenlining Institute Executive Director Orson Aguilar. “We still have millions of people worried about losing their homes to foreclosure, and that’s a dead weight on the housing market and the whole economy. The president and Congress must address this if they’re serious about jobs.”

Aguilar added that millions more may not be on the brink of foreclosure, but are deeply underwater, owing far more than their homes are now worth. “This isn’t complicated,” he said. ”Economists say that consumer spending is crucial, and people who are badly in debt don’t spend. Principal reduction can make it possible for many homeowners to refinance and let consumers start spending again, stabilizing neighborhoods and reviving housing and construction.

“Fannie Mae and Freddie Mac back nearly half the nation’s mortgages but haven’t been willing to allow principal reduction,” Aguilar noted. “That needs to change, and quickly.”

Aguilar also urged that tax and infrastructure proposals be geared toward small businesses. “Small businesses are the real engine of the economy, and they got very little from the bailouts and stimulus in 2008 and 2009,” he said. “We can’t ignore small business and have a healthy economy.”

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http://www.commondreams.org/newswire/2011/09/08-4

[ChandlerJr]

1. Don't turn it into an A.N.S.W.E.R rally

JOBS JOBS JOBS!

[MineralMan]

2. I think this speech will be completely focused on jobs.

This is not a reasonable demand, in my opinion. Jobs is a big enough issue, and is the focus tonight.

[sufrommich]

3. I am one of the "deeply underwater" homeowners. I'd love

to see a reduction in my principle, although I can't imagine how that would work. One thing I will say is that I live on a street with 5 foreclosed houses (western suburb of Detroit) and one thing all of us living here have in common is the reluctance to put any money into our houses other than emergencies such as plumbing/heating problems. I imagine that is using a lot of businesses to really struggle around here.

[TwilightGardener]

4. I haven't looked, but I'm sure I'm "upside down", as they say at the car dealership.

I felt bad that when we moved in, every tradesman within 10 miles came to our door to offer drywalling, welding, etc. Broke my heart, but we're not hiring in this house.

[gateley]

5. It has to be about jobs NOW. That's the most pressing concern. nt