Obama Re-election Strategy? Help Banks Get Away Scott-Free

President Obama is trying to do what all first term presidents want to do – win a second term. His plan for securing reelection is made up of three prongs:

1.”Fixing” the housing market

2. Creating jobs

3. Giving banks a free pass to destroy the world economy through a volatile mix of forgery, fraud, and greed.

Obama’s plan for creating jobs is fixing the housing market so that people feel more secure about their largest asset, their house. If people feel secure about their homes, then they will spend money and create demand. Once demand is created, small businesses, the true engine of the economy, will start hiring again.

There are several different ways that the housing market could be improved. One of those ways would be to increase the amount of vacant government-owned homes for rent, as we have long advocated doing.

Another idea that is gaining traction is to refinance all of the mortgages that are backed by Fannie and Freddie. Currently, there is approximately $2.4 trillion of such mortgages that have an interest rate above four percent. By refinancing the mortgages and lowering the interest rate, people would instantly have a couple of hundred dollars more every month to spend elsewhere.

That would go a long way towards boosting demand in the economy; thereby creating jobs and make Obama seem pretty smart.

While improving the housing market and creating jobs win Obama regular folks’ votes, he is still chasing big dollar contributions on Wall Street. To get Wall Street’s money, Obama needs to make the banks’ legal liabilities from their massive frauds go away.

It is tragic that the President feels himself to be beholden to Wall Street as opposed to Main Street. Wall Street might be able to contribute large amounts of money, but only Main Street can, at least for the moment, vote for Obama.

Oppenheim Law asks the President to look after Main Street. Ideas such as refinancing mortgages and renting empty houses can really help the people who need it most as opposed to the people who need it least.

Roy Oppenheim,

From the Trenches