Thomas Jefferson was the third President of the United States (1801–1809), the principal author of the Declaration of Independence :

BANK (NATIONAL) (THREAT TO LIBERTY)

If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies.

We are completely saddled and bridled, and the bank is so firmly mounted on us that we must go where they ill guide.

The dominion which the banking institutions have obtained over the minds of our citizens…must be broken, or it will break us.

(Letter to James Monroe, January 1, 1815).

 

Meanwhile almost 200 years later……….. 

FDIC chairman, Sheila Bair is pushing for “more proactive intervention” is needed to prevent  more home foreclosures.

Reuters:

Data show there could be a second wave of the more traditional credit stress you see in an economic slowdown,” Bair said. “The slowdown we’ve seen in the U.S. economy since late last year appears to be directly linked to the housing crisis and the self-reinforcing cycle of defaults and foreclosures, putting more downward pressure on the housing market and leading to yet more defaults and foreclosures.”

What she is speaking of is the trickle down affect that the mortgage and housing crisis is having in all other credit markets. The current credit markets that are being affected are construction and development lending as well as for commercial and consumer debt.

More from Bair:

Bair called for using low-cost government loans to help borrowers pay down unaffordable mortgages, a plan she put forward last month as a way to help about 1 million homeowners.

“Over the past year, federal and state governments, and consumer groups have worked with some success to encourage the industry to modify loans,” Bair said. “But it’s just not happening fast enough. Given the scale of the problem, this cannot go on loan-by-loan as it has.”

We can talk about loan modifications all day and yes, lenders and servicers are assisting the lucky homeowners who make it through the maze of phone and employee hell.

 But, the simple issue that is not being addressed is man power. They do not have the capacity and employees that are needed to handle these loan workouts.

Plain and simple. MAKE them hire or outsource staffing to clean up their mess. This is a travesty that we sit and let them operate their loss mitigation departments in such a shoddy and unprofessional manner. To be frank with you all, they all are operating at half ass capacity. All to squeeze fees from the consumer and reduce costs from their bottom line.

My guesstimate would be that they are operating their loss mitigation departments at 25% capacity of where they really should be. Lenders were the ones that had underwritten these loans. Not the American homeowner, but the banks. They sure had the staff and man power to originate all the subprime, toxic loans. But when it comes to cleaning up their massive toxic, subprime spill, they run for the hills and close the doors to their glass houses paid in full by blood money. All the while they are made filthy rich as they cash in their massive stock portfolios.

Meanwhile the rest of America suffers silently in their homes.

We must demand that mortgage servicers hire the proper amount of employees they need to handle their delinquencies and defaults in a timely matter and to offer meaningful and long term loan modifications to eligible borrowers.

The facts are that the consumer, the American Citizen and homeowners drive the majority of our economy. We are being severely hurt in all areas of our pocket books and if it continues, we may see anarchy in the streets.

Not a day goes by with out an increase in the food we eat, gas for our cars and the services we need to live. We are slowly being nickeled and dimed to death every where we go. Gassed to death in our cars. Milked to death in our super markets and now we are being led to our foreclosure deaths in what (our homes) was SOLD to us as the American Dream.

All this suffering we are facing is to help clean up a mess that was created by corporate America. By Wall Street and by our Governments lack of regulation.

They live in glass houses as we suffer in shattered homes we don’t own and never have.

The mighty Bush Administration bails out their buddies at Bear Stearn’s to the tune of  billions of dollars as the consumer gets kicked out of their house.

So here we sit. Suffering in our homes as the housing circus plays outside our front doors and on our televisions.

Wake up America and do something. Let your voices be heard over the senseless lip service that is being played out in the media and in Washington. We the people, can make change. Not Obama, not Clinton and certainly not McCain. But the people.

Thomas Jefferson:

I hope we shall take warning from the example and crush in its birth the aristocracy of our monied corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country.

(Letter to Logan, 1816). THOMAS JEFFERSON ON DEMOCRACY 138 (S. Padover Ed. 1953).