TARP Funds Might Be Used For Foreclosures
The Wall Street Journal reported that the federal government should devote at least $50 billion of the remaining financial-rescue funds toward a plan to prevent foreclosures, said House Financial Services Committee Chairman Barney Frank Friday.
Barney Frank is also planning to layout restrictions on the remaining $350 billion. This should have been done from the get go. I understand it’s a Catch 22 with the banks because they are told they need to lend the money that is given to them but at the same time keep their balance sheets looking strong. It is hard to do both.
As I have said over and over again, this is not just a supply and demand issue. We need to stop foreclosures which in turn will stop values from dropping so significantly.