Extending Unemployment Benefits – House Bill Failed By Three Votes

June 29, 2010

By Padmini Arhant

Less than an hour ago, the House of Representatives’ concerted effort to revive the bill extending unemployment benefits to the millions of people representing the stars and stripes fell short by three votes in the two third majority requirement.

Yea – 261 votes. Democrats – 231 and Republican – 30.

Nay – 155 votes. Democrats – 15 and Republican – 139

Not clear on the remaining single nay vote.

Despite the citizens’ plea to Congress members to pass the bill through bipartisanship,

By revealing their deteriorating economic situation due to the weak job market, severe recession and the unemployment benefits expiration,

The ‘Nay’ Sayers on both sides rejected the public plight to allow politics prevail over people’s life.

Legislation failing by three votes that could have salvaged millions from becoming homeless is a tragedy and a sad day for democracy.

Regardless of the political differences, ignoring the harsh realities experienced by the people across the nation is incomprehensible and speaks volume about the individual priority.

Perhaps, the lawmakers possessing the power to improve lives have a legitimate explanation for their action depriving the American families, the means viz. unemployment benefits and tax breaks for small businesses to cope with the dire economic crisis.

Human nature is to protect, preserve and nurture life, not aid in their destruction.

Unfortunately, the current trend is ominously in favor of the latter.

Anything that is detrimental to human existence and life threatening has overwhelming support in the political and judicial system fomented by certain news media.

On the contrary, the bills pertaining to economic recovery and legal issues on life sustenance is defeated with no concern for the consequences.

The reasons behind such decisions are usually related to personal and political ideology.

When human beings have the power to help others in their suffering and they willfully act against their conscience, it is clear that they are guided by their illusion rather than intuition.

The real joy and success is measured by the selfless activities i.e. without any expectations in return for promoting progress among the less fortunate in the society.

Any work performed for greater good often accompanied by empathy makes life worth living.

Notwithstanding the eternal bliss –

For health, wealth and power are meaningless without inner peace and happiness.

Something that cannot be achieved by superficial sources in life.

It’s a sincere hope that the Congress members in the House and the Senate elected by the people to address their needs would reconcile the disagreements with the majority and collectively resolve the national crises hurting their constituents and the citizens at large.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Citizens Plea to the Senators on Jobless benefits and Health Bill

June 28, 2010

By Padmini Arhant

The unemployed citizens have presented their desperate situation with the hope of getting some help.

It’s not always easy to be open and upfront to the world about one’s life.

It requires honesty. Honesty demands courage.

The citizens’ message has adequate reasons and highly inspirational, apparently a prerequisite in approaching the elected officials for their votes on life and death matter such as jobs and health related bills.

A lawmaker’s constitutional duty to serve the citizens at all times more so during critical hour is portrayed as a favor or mercy towards their subjects by the authorities and certain news media.

If these messages do not change the ‘Nay’ votes to ‘Yea,’ votes, then ‘compassion,’ and ‘righteousness’ have lost their meaning.

Meanwhile, anyone who could assist these citizens to cope with the difficult circumstances would be not only saving lives but also providing the nation with additional taxpayers through their employment.

Your kindness is much appreciated.

Thank you.

Padmini Arhant

Please read the message from the citizens pleading for survival means. Thanks again.

The URL or any other information about job sites and financial aid may be posted in response to citizens’ comment on this website against appropriate articles. Thanks again.

1.” JOE: From Why Senate must act immediately on the Unemployment Benefit Extension?,
2010/06/27 at 4:44 PM

THE REPUBLICANS FILIBUSTERED THE VOTE TO TRY TO MAKE THE DEMS LOOK BAD.

I CAN ALMOST HERE THE ANTI CAMPAIGN COMMERCIALS NOW.

This is political nonsense at its best.

THEY HAVE TO VOTE BY THIS WEEKEND BEFORE THEY GO ON VACATION (THAT’S A JOKE IN ITSELF)

I HAVE NO INCOME COMING IN, MY 26 WEEKS ENDED LAST SUNDAY.

ARE WE CHASING THE GHOST OF TOM JOAD?

I’VE BEEN KNOCKING DOWN DOORS FOR A JOB, NONE EXIST.

WITH A DAUGHTER ENTERING HER SOPHOMORE YEAR OF COLLEGE, THERE’S NO WAY TO HELP HER ALONG THE WAY. CELL PHONE DUE, RENT DUE, CAR PAYMENT DUE.

GAS TO FILL UP MY CAR. UTILITIES TO PAY.

I’M A SINGLE FATHER, I CAN’T SURVIVE WITHOUT THE EXTENSION…PRAYING THAT THE JOBS WOULD COME, BUT THAT’S LIKE ASKING A FARMER TO RAISE CROPS WITH NO WATER…

PLEASE, FOR THE LOVE OF GOD, SENATORS, GET YOUR…BACK TO WORK AND,

FIGURE OUT A WAY TO GET A BILL SIGNED. AND CREATE MORE JOBS BY YEARS END…OUR FUTURE, WITHOUT IT, IS THE GRAPES OF WRATH REVISITED ALL OVER AGAIN…”
————————————————————————————–

2. “out of benefits in Ohio:

From Senate Block Vote on Unemployment Benefits Extension and Delay Medicare Reimbursements, 2010/06/28 at 8:35 AM

To Padmini Arhant,

You are so full of it.

Congress is ignoring everyones plight.

While they spend money for big dinners and jets and cars, we the working class get to live in the streets.

I guess the ILLEGAL immigrants are more important to Washington than the citizens of the US.

Washington is spending $10.4 Billion/year on them.

Because I don’t have children at home, I can’t get medical care for my wife.

I can go to the VA but they won’t give me 2 of my meds for a heart condition because some government agency decided I didn’t need them.

Meanwhile I see drug addicts and dearlers getting all kinds of help. I hope that you never have to rely on your government to take care you….”

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

G-8 and G-20, 2010 Summit – Toronto, Canada

June 27, 2010

By Padmini Arhant

A warm welcome to the world leaders attending the back to back G-8 and G-20, 2010 summit in Toronto, Canada.

The G-8 summit held on Friday, June 25, 2010 appeared to focus on the common economic issues such as financial regulations, deficit reduction and economic aid to disadvantaged countries on the financial side.

International peace and security – the leaders’ discussions are expansive from Iran’s controversial nuclear program, disarmament of North Korea, war in Afghanistan, Pakistan including the tensions in the Middle East.

Also in the agenda is the African leaders outreach on economic progress.

Social issues are related to protecting women’s health viz. maternal well being and infant growth in the regions lacking in antenatal care.

It’s important to begin with the financial sector and the economy for this topic.

Congratulations! To President Barack Obama, Speaker Nancy Pelosi, Senate Majority leader Harry Reid and the Congress members for the bipartisan votes in the long overdue financial reform.

It’s a major milestone and a fresh beginning to avert future financial crisis responsible for the global economic meltdown with spiraling effects on the housing, credit and job market.

Other industrialized nations like Germany passed their financial regulation with a mandatory deficit reduction. The constitutional amendment by Germany to contain the deficit to 0.35 percent of GDP by 2016 provided the higher deficit not attributed to GDP decline is a trendsetter in curbing the economic recession.

Similarly, the United Kingdom, Japan and the hard hit economies with huge deficits are in the process of clamping down on the national debt through fiscal austerity and tax hikes.

The deficit reduction is the popular stance among the member nations in this summit.

Although, containing national debt is an immediate priority, the measures to achieve the desirable goal needs to be balanced, so that the vulnerable population like children, senior citizens and the people with disabilities or life threatening conditions are not deprived of basic services from the targeted spending cuts.

Maintenance of social services and programs availed by the citizens across the spectrum would prevent the inevitable outcome – For the elimination would lead to unsustainable economic costs impacting health, education, housing, consumer spending, states’ emergency units – fire and police departments.

Notwithstanding the potential increase in domestic crime rate that had been relatively low nationwide.

Likewise, raising taxes on health and environmentally harmful sources is a place to start due to the dual cause. It would protect the people and the habitat while generating revenue to pay off the accumulated debt.

In the United States, the legislation aimed at economic revival and federal aid to the states for essential programs is challenged by the opposition minority based on their national debt concern.

It’s a legitimate reason but the disapproval is directed at the nerve center of the society.

By denying unemployment benefits to the laid off workers and,

Blocking federal aid to the states is an erroneous decision. States’ employment would be affected leading to massive retrenchment resulting in tax revenue losses.

Already, some states have furlough hurting many American families. In addition, the states offer lifeline support to many contributing back to the system via taxes as wage earners and consumers.

Despite the reality, the ‘Nay’ vote defies logic.

There are ways to pay for these bills by reallocating the unutilized funds in defense spending and pet projects. Moreover, there cannot be anything significant than helping the workers survive and enable them to be gainfully employed yielding tax payments.

Ignoring citizens’ plight has much higher economic and political ramifications.

Therefore, the stimulus bills with guaranteed tax returns are the means to expedite economic recovery.

Since globalization is embraced as the twenty first century economic policy, the anomalies in the system beckon the world leaders’ attention.

There is an urgency to implement international labor and environmental laws binding on transnational corporations to safeguard the environment and the workers’ interest against exploitation, negligence including fair and equal compensation regardless of territories.

Even though, the child labor is banned in some developing nations, the practice is widespread in the desperate parts of the world often engaged by the established multinational companies from the industrialized nations.

Stringent strategies against financial investment firms’ speculative activities that led the Greece and the neighboring economies to the brink of collapse are quintessential in the sweeping financial overhaul.

Some have addressed the problem by enforcing strict rules on the ‘derivatives’ and hedge fund mismanagement in the financial reform. However, the global standard would strengthen the application.

Currency adjustments by the emerging economic power creating trade imbalance and subsequently influencing the rising deficit financed by the creditor is yet another matter to resolve in the present meeting.

Tax havens and withholding income from offshore investments by corporations are impediments to the struggling economies irrespective of stature. Again, cooperation from the G-20 partners facilitating such activities is to be sought on this occasion.

Clean energy to free mankind from fossil fuel and nuclear technology is crucial to replace the discriminatory civilian nuclear program paving way for nuclear proliferation.

Global terrorism and security – Coordinating with international intelligence agencies as opposed to militarization or deploying military personnel on espionage to collect information is a serious violation of the respective nations’ sovereignty. The clandestine military operation is bound to exacerbate the insurgency in the volatile regions forcing the local population to favor the militants reluctantly against the infiltrators.

The article titled “U.S. Military Espionage – Directive for Global Operation,” May 30, 2010 highlighting the inherent dangers of the provocative activities, was presented under the “National and Global Security,” category on this website for further understanding.

International Peace Agreements – Unanimous condemnation of Iran and North Korea nuclear capabilities and belligerent displays against neighbors is a positive step.

Similarly it should be extended to allies violating human rights through illegal invasion and occupation of land, prominently Israel and China viewed by the international community as the U.S and Europe’s ‘turn a blind eye,’ foreign policy.

Actions are effective and meaningful when they are universal and not selective in the enforcement.

Other nations like Thailand cracking down on civilian population with military might in public square deserve international isolation for successfully thwarting the democratic uprising against abuse of power.

Democracy has become a token political system undermined by excessive military involvement and constitutional monarchy as seen in Thailand.

Burma/Myanmar belongs to the league in brutality against its citizens by the military junta reportedly occupied with the nuclear activity.

Worldwide nuclear disarmament is the course to pursue for global peace.

In other humanitarian issues – whether it is women’s rights, social justice or dealing with hunger, poverty and disease, they are all related to the political power governing the nations.

United States, EU, United Nations, Arab countries and emerging economic powers have a decisive role in promoting democracy, peace, human rights, economic and social progress by remaining impartial and committed towards the noble mission.

Best Wishes to G-8 and G-20 nations attending the 2010 summit.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy | Leave a Comment 

Republican Senators kill the Jobless Benefit bill

June 25, 2010

By Padmini Arhant

On Thursday, June 24, 2010, the Republican Senators unanimously voted against the jobless benefit and job creation bill that could have not only averted millions of American families from becoming homeless but also enormously boosted the small business and medium corporations with the necessary tax breaks to prevent layoffs.

Although, it comes as no surprise given the GOP Senators track record on any legislation since 2009 that has been passed with predominantly Democrats votes,

This particular legislation was aimed at economic revival and providing relief to the long term unemployed workers laid off due to corporate downsizing in a bad economy.

The GOP members’ decision against the life saving and economic recovery bill has the following consequences.

According to the Senate Democrats:

“The demise of the bill means that unemployment benefits will phase out for more than 200,000 people a week.

Governors who had been counting on federal aid will now have to consider a fresh round of budget cuts, tax hikes and layoffs of state workers.

This is a bill that would remedy serious challenges that American families face as a result of this Great Recession,” said Max Baucus, D-Mont. the chief author of the bill.

This is a bill that works to build a stronger economy. This is a bill to put Americans back to work.”

Essentially, the Republican Nay Sayers have successfully exacerbated the joblessness, economic recession and contributed to the state workers massive retrenchment.

All under the pretext of reducing national deficit, when in fact their partisanship has escalated unemployment depriving the economy of taxpayers to reduce the national debt.

Such bizarre political pitch is a direct assault on the American taxpayers-cum-electorates’ intelligence, besides adding insult to their injury.

Their fiscal policy – “Penny wise and pound foolish,” has been a miserable failure thus far.

The Republican lawmakers’ sudden consciousness for fiscal responsibility has come ten years late.

Only had they been conservative with the wayward spending during the period they were in control of the executive and legislative branch by reining in on the Bush-Cheney Machiavellian economic and war policy that has led to the status quo worldwide, the current obstructionism is purely political than fiscal.

Again, the Republican members’ misplaced priority in their approval of illegal wars that has bankrupted the economy and claimed over million lives juxtaposed to them rejecting the job creation bills guaranteed to reverse unemployment and vastly improve American lives is oxymoron.

The voters attention towards GOP systemic sabotage of American living standards is imperative, especially in November 2010.

The recent polls revealing the GOP lead in spite of their strong opposition to American progress is indicative of the lack of public awareness and selective media false propaganda.

Not to mention the inherent dangers of electing the Republican candidates determined to erase the dwindling middle class with an utter disregard for the lower income families.

It’s time for every unemployed individual hurting from the severe job loss and economic crisis – the Republican administration’s legacy to American families, to rise to the occasion and demand that the Republican members in the Senate honor their constitutional oath to serve the American interest and not their specific political agenda.

The GOP Senators’ dismissal of the American families represented by their own base along with the independent voters speaks volume about their commitment to drive the once thriving nation to oblivion.

Unequivocally, they prevailed in the past decade leading the nation to the point of diminishing return.

American democracy taken for granted and the disturbing polls suggest the GOP political maneuvering to stay ahead by distortion, while their performance in the Senate has been detrimental to Americans across the political spectrum.

The 200,000 jobless benefit recipients denied survival means by GOP Senators should dissent the gridlock and insist they deliver the votes required in the jobless benefit extension and every other legislation.

Regardless, the people should rally behind the Democrats at the State and national level, for they are the only hope in alleviating the burden on the American workforce and taxpayers.

Please send your affordable donations to the Democratic Party – DNC, DCCC and DSCC in Washington D.C. and help them secure supermajority in both houses of Congress to set the great nation, the United States of America back in motion.

The grassroots movement can make it possible as witnessed in 2008.

All those individuals affected by the economy and struggling to make ends meet need to turn the tide by replacing the GOP Senate filibuster with Democrats active participation for personal and national good.

Complacency to GOP tradition – stall and kill the bill is equivalent to rendering democracy powerless.

Meanwhile, the Medicare bill delaying the proposed 21 percent cuts in payments to doctors until November 2010 was passed as a stopgap measure to rescue the senior citizens and the disabled patients.

The bipartisan agreement to increase payments to providers by 2.2 percent is a temporary aid to the Medicare program beneficiaries.

Nevertheless, the partial legislation is appreciative.

Needless to state that the unemployment benefits extension would have salvaged the approximately two million families declined help by killing this bill.

Politics discrediting and attempting to weaken the target using the suffering population as pawn is counterproductive.

As stated on numerous occasions, negative emotions hurt the ones harboring more than the ones it is aimed at.

Real intentions behind any destructive course become known for truth cannot be camouflaged.

Nation flourish on solidarity among the powerful with the power to improve lives not the contrary.

Thank you.

Padmini Arhant

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Why Senate must act immediately on the Unemployment Benefit Extension?

June 23, 2010

By Padmini Arhant

From: An Unemployed Mother in her comment to the earlier published article :

“Senate Block Vote on Unemployment Benefits Extension and Delay Medicare Reimbursements,”

unemployedmother: 2010/06/23 at 7:16 PM:

“You are missing one key point. The longer the senate waits to vote on this, the more people, including myself and my two sons, will have been made homeless because we cannot pay the rent. I have no money, my phone was cut off due to unpaid bill, my electricity will be next, but that doesn’t matter, I will have no home. Without a home, how are we supposed to vote…for we will have no known address.”

Moment of Reflection: By Padmini Arhant

To the Republican Senators and others stalling the legislation:

How many more victims must come forward pleading for help?

How long must they endure the political stalemate, ultimately affecting the suffering population?

Failure to vote in the legislation such as the unemployment benefits to the laid off workers for no fault of their own and the millions having become homeless in the miserable economy, the Bush-Cheney legacy to the American families – is negligence of constitutional responsibility.

Lawmakers are elected to act on behalf of their constituents and citizens across the nation on all of these issues.

Instead, the GOP members are pledged to ignore the voice of the people, assuming them to be a mere formality in the political process.

If the gridlock continues, it would be detrimental to the political party espousing the undemocratic strategy.

People are fed up of the political shenanigans displayed in every legislation rendering Congress, the republic’s chief representative in a democracy, a malfunctioned authority.

Hopefully, the Senators especially the Republican members will pay attention to the rising temperature among the exhausted population awaiting the opportunity to replace those who don’t deliver with the candidates dedicated to the people electing them to power in a democracy.

Time is running out for the legislators determined to widen the gap between the haves and the have-nots.

The hurting population are anxiously waiting to end the Washington tradition i.e. stall, filibuster and kill the bill.

Not anymore, for the citizens are energized to eliminate inaction and reinstate action in Washington, come November 2010.

Thank you.

Padmini Arhant

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Senate Block Vote on Unemployment Benefits Extension and Delay Medicare Reimbursements

June 23, 2010

By Padmini Arhant

In the past week, the United States Senate was presented with the two most important bills directly affecting the average Americans survival.

According to the reports, the GOP rejected the $24 billion aid to the long-term unemployed citizens in the cash-strapped state governments and the several tax breaks renewal for businesses and individuals.

Apparently, the 56-40 vote on June 17, 2010 fell short of four votes to avoid GOP filibuster. Without any Republican votes for the measure, the Nebraskan Democrat Senator Ben Nelson along with the Connecticut Independent Senator Joe Lieberman contributed to the filibuster.

Today, the Ohio Senators’ repeat attempt to revive the bill by emphasizing on the urgency of this extension remained unsuccessful.
————————————————————————————————–
Per: http://www.wkyc.com/news/local/news_article.aspx?storyid=138410&catid=3 – Thank you.

Ohio’s Democratic U.S. Sen. Sherrod Brown told fellow Senators that “more than 57,000 Ohioans — about the size of Elyria, Ohio or Mansfield, Ohio or twice the size of Zanesville — more than 57,000 Ohioans are estimated to have lost unemployment benefits since the extension ended in May, a month ago.”

“If the Senate does not pass an extension, that number will increase dramatically. More than 90,000 Ohioans could lose their benefits by the end of June. That is more people than live in Youngstown, more people than live in Springfield, more people than live in Cleveland Heights or Lakewood.”

Brown said that, nationwide, since the beginning of June, some 900,000 workers have run out of jobless benefits. That number will surpass 1 million by the end of this week.

Brown said today that he is very disappointed by the obstructionists’ moves to stop the extension of benefits.

“Senate Republicans are denying tens of thousands of Ohioans — and thousands of people in New Hampshire and hundreds of thousands of people in California and Texas and Florida — the Republicans are denying tens of thousands of Ohioans the unemployment insurance benefits they have earned during years of hard work,” Brown told fellow Senators.

“I ask my Republican colleagues who consistently vote no to try to empathize with those who have less privileges than we do, who don’t have huge staffs and don’t have a good salary and don’t have good insurance and don’t have a secure place to live, what their lives would be like if any one of us lost all of those privileges. I think it would make a difference in how they vote.”
————————————————————————————————-

Perspective – By Padmini Arhant

It’s evident from the Ohio Senators’ case scenario that the situation is dire for the citizens in many states with higher unemployment.

Denying thousands of workers the means to cope with the economic recession amid rising or stagnant joblessness under the pretext of national debt or demanding that they are paid for prior to approval is a misplaced priority.

Where the Republican members should be arguing for the prepaid funding is, unnecessary wars such as Iraq and now Afghanistan including the perilous offshore drilling contributing to colossal costs witnessed at present.

It’s common knowledge that the GOP members and the few Democrats against the bill have willfully authorized the defense funding for the prolonged wars and claim no objection to the environmental damages via offshore drilling…

The Nay Sayers fail to recognize the consequences of their action or the lack thereof, leading up to the status quo exacerbation.

When the national figure for jobless benefit is expected to reach a million by the end of this week, the complacency is the affirmation of the elitist least bothered about the populist plight.

Ignoring the struggling families’ desperate economic needs based on partisanship more than fiscal responsibility is politics superseding national interest.

Although, the estimated $13 trillion national debt is a legitimate cause, the divestments from other sources with excess budget allocation including the pork barrel spending could be utilized for this important legislation.

Citizens cannot be possibly deprived of existence in the worst economy and the Republican lawmakers’ argument in this respect does not bode well, considering the positioning is purely aimed at winning conservative support in 2010 elections.

As for the isolated democrats and the independent Senator Joe Lieberman, the clock is ticking with the diminishing public patience on all issues. The proof of the pudding is in the electoral outcome.

Increased awareness and harsh experience by the electorate is a political gamble for the incumbents and the new challengers in the coming election.

People are tired of gridlock and, the ominously missing empathy among the obstructionists is a blatant dismissal of the economic reality endured by the voters.

Therefore, the ideal strategy to resolve the bill passage would be to identify the redundant funds in the fiscal budget and reallocate them for the unemployment benefit extension as well as the retrospective Medicare payments towards health care service.

Regarding the Medicare decrease in doctor payments: The belated Senate vote to spare doctors a 21 percent cut in Medicare payments is proved to have escalated the administrative costs for the providers and the taxpayers.

Much to the AMA (American Medical Association) frustration and AARP, the seniors’ lobby disappointment, the Congressional delay in the particular legislation is stated to affect the large health care program availed by 46 million elderly and disabled people.

Further, the claims processed at the lower rate are forcing many physicians to stop accepting Medicare patients while others considering dropping out of the Medicare program.

The cut appears to have had a direct impact on the billings for the early part of the month because of the Congressional reprieve expiry on May 31, 2010.

Seemingly, the lawmakers’ failure to act earlier is drastically hurting doctors’ cash flow and subsequently the beneficiaries, i.e. the most vulnerable groups in the society – the senior citizens and the disabled population, who also happen to be the nation’s substantial voting bloc.

It is obvious from the facts and legislative events that the representatives declining to vote on the pivotal legislations viz. unemployment benefit extension and Medicare payments to doctors attending to seniors and disabled patients are adding to the national debt crisis rather than alleviating the taxpayers’ burden.

GOP Senators and the Democrats aligning with the Republican members in the voting process are miscalculating the fiscal ramifications and the inevitable political price for their decisions.

It’s essential for the victims in these two vital legislations to distinguish between those who represent the people from the ones’ sworn allegiance to the special interests – health insurance industry and the likes.

Please remember that ‘Change is made possible by the people.’

For the voters have the ultimate power in a democracy.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Federal Program Evaluation on Mortgage Refinance and Foreclosures

April 1, 2010

By Padmini Arhant

Please refer to the details laid out in the preceding articles from other news organizations published on this website under the title ‘Mortgage Refinance and Foreclosures.’

Information is also available in the article, @www.mercurynews.com

“By Sue McAllister – San Jose Mercury News, Saturday, March 27, 2010 – Thank you.

“Titled – Debt Relief – Mortgage program: Who will benefit?

Answers to how the federal plan will work and whom it will help”
———————————————————————————–

Program Evaluation – By Padmini Arhant

Making Home Affordable program targets the vulnerable homeowners on the verge of losing their homes.

Mortgagees who are unemployed, underwater and delinquent in their payments could seek assistance upon they meet the criteria.

Aligning mortgage debt with the asset value in order to help people retain ownership is a prudent measure to stabilize the struggling housing market.

It’s evident from these news reports that the program is well intended but the burden rests on the taxpayers through,

Federal Housing Administration insured loans absorbing the entire risk on potential loan default,

And,

Incentives to lenders to reduce principal value for the underwater and unemployed customers provided from the TARP funds…

The finance sector responsible for the subprime mortgage crisis is exempt from any liability.

On the contrary, they are being coerced with the federal funding that appears to be inadequate to rescue the vast majority from foreclosures and loan qualifications.

Federal programs or reform requires oversight to ensure the rules adherence by the industry.

Again, an independent / non-profit consumer rights agency is appropriate to avoid the conflict of interest.

As stated by the consumer advocates, the bankruptcy procedure for loan modifications is more reliable than the service offered by the federal partnership with lenders.

When a particular method is not yielding the desirable results, it is best to choose the option with a positive outcome.

Since the rules are ignored by the industry, setting consequences for non-compliance is an effective approach to limit the program failure.

If the borrowers are subject to terms and conditions then it should be applicable to the lenders as well.

Finally, the program would be beneficial with the banks accepting a fair share of monetary obligations in the principal reduction and the refinancing structure, having been the beneficiary of taxpayer bailout.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Mortgage Refinance and Foreclosures

March 31, 2010

By Padmini Arhant

In the current economy, two major issues deserve urgent attention.

They are – unemployment and home ownership.

This topic will focus on the homeowners and the federal program under consideration to address the foreclosures arising from high mortgages.

Meanwhile, the following news report and editorial from other news organizations are presented for reference.

According to the –

1. New York Times report By David Streitfeld – Friday, March 26, 2010 – Thank you.

New help for homeowners – Revising Loan Modification

The Obama administration will announce today a broad new initiative to help troubled homeowners, potentially refinancing several million of them into fresh government-backed mortgages with lower payments.

The escalation in aid comes as the administration is under rising pressure from Congress to resolve the foreclosure crisis, which has put millions of Americans at risk of losing their homes.

A major element of the new program, according to several sources who spoke on the condition of anonymity, will be to encourage lenders to write down the value of loans for borrowers in modification programs. Until now, modification programs have focused on lowering interest rates.

Another major element will involve the government, through the Federal Housing Administration, refinancing loans from borrowers whose home value has sunk below what they owe on it.

More than 11 million homeowners are in this position, known as being underwater.

That aspect of the plan would apply even to borrowers who have not fallen behind in their mortgage payments.

Investors who own the loans would have to swallow losses but would probably be assured of getting more in the long run than if the borrowers went into foreclosure.

The FHA would insure the new loans against the risk of default.

Many details of the administration’s plan remained unclear Thursday night, including the precise scope of the new programs and the number of homeowners likely to qualify.

This much was clear, however:

The plan could put taxpayers at increased risk.

If many additional borrowers move into FHA loans, a new downturn in the housing market could send that government agency into the red.

The FHA has already expanded its mortgage-guarantee program substantially in the last three years as the housing crisis deepened, insuring more than 6 million borrowers.

Sources said the agency would receive $14 billion in funds from the Troubled Asset Relief Program, cash it could dangle in front of financial institutions as incentives to participate in the new program.

A third element of the White House’s housing program will require lenders to offer unemployed borrowers a reduction in their payments for a minimum of three months.

An administration official declined to speak on the record about the new programs but said they would “better assist responsible homeowners who have been affected by the economic crisis through no fault of their own.”

The plan would essentially supplant the government’s earlier mortgage modification plan, announced a year ago with great fanfare.

It has resulted in fewer than 200,000 people getting permanent new loans.

As many as 7 million borrowers are seriously delinquent on their loans and at risk of foreclosure.

The news was greeted with cautious enthusiasm by groups that have tracked the foreclosure crisis and tried to assist communities and underwater homebuyers.

“It sounds really good, and I’m not used to saying that,” said Kevin Stein of the California Reinvestment Coalition in San Francisco.

He said “the two main weaknesses” of the existing federal Home Affordable Modification Program were that,

It didn’t reduce the mortgages of underwater homeowners,

And, didn’t help borrowers who were underemployed or unemployed and would have difficulty qualifying for a loan modification.

“It seems they have taken these issues to heart,” Stein said.

“It’s unclear how many people will qualify – that’s the one hesitation. We’re not sure how broadly these initiatives will reach.”

Martin Eichner, with Project Sentinel in Sunnyvale, said the proposals sound good but he would like to see the details.

“It has to help significant numbers of people and there has to be enforcement,” Eichner said.

“These plans always look great in the first news release, but we’ve often been disappointed in the performance. To the extent that lenders write down principal balances, that would be a significant improvement,” he said.

Eichner said the home affordable effort also needs an enforcement mechanism.

“Without any real consequences, day to day we see lenders ignoring what we think are pretty clear rules under the current making home affordable program,”

While the number of foreclosure-related filings is beginning to flatten or decline, the number of borrowers who are seriously distressed is rising.

In the fourth quarter, the number of households at least 90 days past due on their mortgages swelled by 270,000, according to a report issued Thursday by the Office of the Comptroller of the Currency.

“The government is seeking to persuade people to stay in their homes by aligning the mortgage debt with the asset value, which is the only viable path to real housing stability,” said one person who was briefed on the government’s plans.

Several people who described the plans would speak only on condition of anonymity, since they had not been authorized to disclose details ahead of a White House briefing scheduled for this morning.”

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2. Editorial in the Bay Area News Group – March 29, 2010 – Thank you.

www.mercurynews.com/opinion:

Titled – Foreclosure plan has carrots but needs sticks –

“Eight million households are behind in their payments or in foreclosure. But the Making Home Affordable programs has modified just 200,000 loans.

Forgive us for not jumping up and down with delight over the Obama administration’s latest plan, announced Friday, to help stem the tide of foreclosures.

The changes will help those who are unemployed, underwater or both.

But they have come so late that it’s difficult to muster much enthusiasm.

Banks participation in solving this problem has been optional for too long.

The government must require those who caused this debacle to do more to end it.

Since the foreclosure crisis began three years ago, 6.6 million families have lost their homes, according to the Center for Responsible Lending.

The problem is not getting better.

Eight million households are behind in their payments or foreclosure, and

One in five are underwater – they owe more on their mortgages than their homes are worth.

The administration’s primary tool against foreclosures, the year-old Making Home Affordable partnership with lenders, has so far modified the terms of just 200,000 loans. It is not up to this enormous task.

But the changes announced Friday have the potential to improve that record.

The program will now be open to the unemployed, who previously couldn’t qualify but are a primary victim of foreclosures.

They’ll be eligible to get up to six months’ forbearance and to have their payments lowered to reflect their reduced income, at least for a short time.

Those who owe more than their homes are worth – in California, that’s more than a third of borrowers – may finally be able to get their loan principals reduced.

This much-needed shift in approach addresses another key driver of foreclosure.

Lenders will get incentives to reduce the amount owed.

Borrowers who are current on their payments but underwater – prime candidates to walk away from their mortgages and further weaken the housing market – could refinance into a cheaper government loan.

All of this will help. But the main problem with the government effort remains:

It’s all carrots, no sticks.

Consumer advocates have been pushing Congress for years to allow bankruptcy judges to modify loan terms for primary residences, which could reduce foreclosures up to 20 percent.

The financial industry’s army of lobbyists has managed to beat back that idea, known as “cramdown,” saying it can deal with the problem on its own and through Making Home Affordable.

That’s clearly not the case, because of malice or incompetence.

It would be wonderful if politicians gave the same consideration to desperate homeowners that they do to banks.

Most everyone facing foreclosure nowadays did nothing wrong – they’re simply caught in the cascading wave that began with the subprime mortgage crisis.

The same can’t be said of the banks that got us into this mess and then took billions of taxpayer bailouts.

Allowing judges to modify loans in bankruptcy would add structure to an overwhelmed system.

Reasonable compromises worked out in court would set precedents for lenders to follow.

If they didn’t, they could be forced to by a judge.

Judges have this power for second homes.

There’s no good reason they shouldn’t have it for every home.”
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Comment – Review and Analysis is in progress and will be presented shortly.

Thank you for your patience.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Weekly Events Synopsis

March 27, 2010

By Padmini Arhant

This week, President Barack Obama and the Democratic Congress secured three major achievements of national and international significance.

Beginning with the latest event:

The world’s prolific nuclear nations, U.S and Russia signed a long overdue nuclear weapons treaty reportedly to reduce the warhead arsenals by one-third with the hope to lead the international community towards a complete nuclear disarmament.

Housing market revival through programs targeting foreclosure for millions of homeowners.

And

National Health Care Legislation – is a historic victory for the democrats and the Obama Presidency.

A review and analysis on these topics is in progress.

Your patience is much appreciated.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Reflection on the World Economic Forum – Davos, Switzerland

February 19, 2010

By Padmini Arhant

The World Economic Forum on January 27 – 31, 2010, at Davos, Switzerland contemplated the global economic crises.

Speakers from the large consortium expressed their thoughts and hope or the lack thereof about the global economic prospects at the annual meeting.

Summarizing the summit issues:

The general focus has been:

The economic recession.

The financial crisis and the need for financial reform.

U.S economy, the dollar, the deficits and the gridlock in Washington due to Special Interests’ control of Congress.

Skepticism on the EURO currency strength and concerns regarding European market from the economic struggles in Greece, Spain, Iceland, Ireland, Portugal, Latvia to name a few further exacerbated by the majority euro members surpassing the 3percent budget deficit cap, a criteria for the euro currency usage.

ECB (European Central Bank) role in easing the liquidity crisis.

UK urging banks to assume responsibility – i.e. resume credit to the frail economy.

National Debt from bailouts – A common symptom shared by the major global economies.

Emerging Markets’ potential in stimulating economic growth through international mergers and acquisitions.

Corporate leadership in risk undertaking, growth sustainability and resisting or embracing reform.

Technological impact on business and adapting social networking concept to promote global agenda.

Google – China controversy on hackers and censorship.

Green Technology and consensus on the climate change policy.

Humanitarian issues related to natural resources such as water scarcity, inadequate food supply in fighting hunger, poverty and disease worldwide.

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Economic Synopsis – By Padmini Arhant

Global economic recession – The general agreement is:

The massive capital interjection with public money in the private sector particularly the finance and the auto industry in the United States was essential in the year 2008 and 2009 to avert a major catastrophe – a full blown depression.

Following that, the bailed out bankers have supporters and cynicists to defend or vilify the mega rewards via executive bonuses amid severe financial meltdown mostly attributed to the current economic crisis.

Another contentious issue related to the financial sector is:

Should governments continue to bailout banks under the banner?

“Too Big to Fail.”

Regardless, it’s clear from the recent experience that a serious financial reform is no longer an option but a necessity to counteract risk undertaking in the financial market.

Moreover, the finance industry being the vehicle for the economic growth, it cannot resist regulations due to the uninsured public funds management by the private sector.

Evidently, the real estate slump exacerbated the liquidity crisis in the global economies viz. Iceland (nicknamed as the “subprime economy”) Ireland, Spain and not sparing the once booming commercial real estate capital – Dubai, UAE,

Leaving the United States not unique in the burgeoning residential and commercial real estate decline.

In terms of stimulating the economic growth, industrialized nations and the emerging markets face a common dilemma – stimulus packages, bailouts and the rising national debt.

Government stimulus programs target specific industries in the domestic economy with the green technology touted as the promising field.

Unequivocally, the green technology should be promoted by all nations big and small besides infrastructure projects and reviving the manufacturing industry.

However, the stimulus activity is bound to create national debt from the budget deficit because of sluggish GDP and the negative current account balance for import-oriented economies like the United States.

U.S Economy:

Although, the multi-trillion dollar deficit has not drastically affected the U.S credit rating as the investor confidence in the U.S market is not lost,

The status quo cannot prolong with the persisting Republican members’ opposition against tax hikes to protect self-interest and special interest.

Notwithstanding their blockade in the financial, health care and energy sector reform.

Therefore, the American electorate must be careful prior to swinging their support to the Republican members in Congress.

The ideologues were responsible for bringing America on its knees under the disastrous Bush-Cheney administration.

Now, the same republican members are determined to stay on the course to debilitate the U.S economy with an utter disregard for the ‘average’ Americans.

While comparing the economies in the stimulus funding, it’s clear that the nations investing in the domestic economy like China, Japan, India, Brazil… have survived the worst crisis through quasi participation.

Private sector project with public capital infusion is seemingly a viable economic strategy to reduce unemployment and curb public outcry over increasing national debt.

It’s attention worthy that President Barack Obama has similarly approached the economic woes with the SBA loans to boost small businesses, tax credits to the corporations and the green sector only to be browbeaten by the “fiscal conservatives” in name only on both sides of the aisle.

Again, something to remember about the so-called “fiscal conservatives” successful derailment of economic progress.

So far, the opposition policy in every national issue is “Penny wise and Pound foolish.”

Not to mention their conduct exemplified in the tarnished U.S image at WEF with,

Communist China scorn democracy by citing the Special Interests’ dominance in American politics.

The statement is not far-fetched except for scapegoating democracy against totalitarianism.

United States should adopt big and bold economic actions to contain the high unemployment and that would be:

Job creation in the infrastructure projects, innovate the manufacturing sector with technology alongside revolutionizing industrial growth on eco-friendly foundation.

Energizing the small businesses and retail industry is equally important to enhance the per capita income, an appropriate inclusion in the economic progress measurement rather than reliance on GDP growth alone.

United States is rich in resources in every aspect with an advantage of being the pioneer across the economic spectrum.

The rumor about United States weak economic status and attempts to denigrate the U.S dollar as the international currency is nothing but smear tactics by the competitors vying for the leading role in the world economy.

What the investors should bear in mind is the U.S economy’s resilience to rebound in the face of worst economic and political crisis and history is testimony to that effect.

In addition, the democratic system is a positive factor in attracting investments within and offshore.

European Economy:

The EU and the ECB (European Central Bank) proposals are pragmatic in many ways.

ECB intervention to pull the European financial markets from the liquidity crisis would facilitate the anticipated credit flow in the union.

Economic setbacks in Greece, Spain, Portugal, Ireland, Latvia and last but certainly not the least Iceland are significant and cannot be abandoned for it might reach a crescendo irrespective of the trade volume.

Accordingly, the conditional offer from Germany and France to bailout Greece is vital to protect the EU economic interest with Greece being the union member.

The leadership in the Mediterranean nation under the Greek Prime Minister George Papandreou is capable of salvaging the dire economic situation.

When the reckless banking sector was bailed out for speculative trading, otherwise gambling of public investments,

The Greek economy with labor capital, entrepreneurial exuberance and political stability deserves EU / IMF /World Bank assistance to survive the economic turmoil.

It would be detrimental to hinder the borrowing opportunity for Greece and other ailing economies predominantly due to the regional impact.

At the same time, Greece and Iceland should be transparent with facts and display fiscal responsibility to the international monetary oversight for creditworthiness.

United Kingdom is right on target in demanding the financial sector to resume credit to the frail economy.

U.K has been forceful in urging the much-required global financial regulations even though not surprisingly, the conservative political faction is against it.

France – Recommendation on the long overdue closing of corporate tax havens is a step in the right direction.

In fact, the rule of thumb for the global economies dealing with budget deficits is to:

Eliminate redundant expenditure

Differ or limit discretionary spending

Scale back unaffordable commitments like wars, conventional stockpiles and nuclear proliferation not barring extravagant agenda like moon travel more for prominence than purpose.

Revision of tariffs and taxation laws to expand the revenue horizon.

It’s imperative to consider tax increases and close tax evasion loopholes through tax havens.

Spending freeze with tax cuts and synonymously tax increases with skyrocketing expenditure would be oxymoron at any given time.

Emerging Markets viz. BRIC countries (Brazil, Russia, India and China):

The salient feature in the group is their ability to focus and invest entirely on the domestic economy.

Unlike the United States and NATO, none of the four nations is currently engaged in active warfare though; cross border tension is permanent with contingent defense forces on the periphery.

Still, the four nations ‘combined defense spending falls short of the exponentially escalating U.S military expenditure appropriated for –

Two overt wars in Iraq and Afghanistan,

A proxy war in Yemen with drones and fighter planes provided to the Yemeni forces,

Over and above the U.S military base situated nationally and overseas.

Poignantly China more than Russia is engaged in the lucrative arms race to Iran, Syria, Lebanon, Pakistan, North Korea, war torn Africa – Darfur in Sudan, Congo, Somalia, Guinea, Rwanda…

Yet, not competitive enough to the United States in this respect and confirmed by:

The New York Times article By THOM SHANKER – Thank you.

Published: September 6, 2009

Despite Slump, U.S. Role as Top Arms Supplier Grows

“Despite a recession that knocked down global arms sales last year, the United States expanded its role as the world’s leading weapons supplier, increasing its share to more than two-thirds of all foreign armaments deals, according to a new Congressional study.”

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Economic Synopsis – By Padmini Arhant

BRIC countries impressive performance is expected to continue with the investor confidence higher in these regions than Europe.

Their view on the U.S domestic job creation as isolationism or protectionism do not bode well since the BRIC nations have adapted the domestic investment policy to expedite economic revival.

The irony is the characterization of the United States and Europe adhering to similar strategies as ‘protectionism.’

It’s noteworthy that Brazil, India and China have benefited from globalization with transnational ventures in their shores.

Such anomalies beckon paradigm shift in the globalization concept among the emerging markets.

Some U.S corporations as the global operators echo the sentiments much to the displaced domestic workforce anguish and disappointment.

They remain oblivious to the facts that the United States being the largest consumer base and a major importer is struggling to contain high unemployment, fragile housing market and credit crunch in the financial sector.

U.S economic recovery is paramount for the global economic stability.

Optimize Technological Applications:

World society is more digitalized than before and technology embedded industry maximize efficient output. Incorporating technology in every imaginable field is the cornerstone for the present and future generation.

Green Technology and Climate Change Policy:

Industrialized countries along with developing nations are grappling to arrive at a consensus on climate change policy.

Fortunately there is tremendous enthusiasm towards green technology and the economic powers are reluctant to make the swift transition by renouncing fossil fuel and nuclear power to natural sources like solar, wind and hydrothermal energy.

The main problem lies with the profit guiding politics by the energy behemoths obstructing the fossil fuel and nuclear technology abandonment against all natural elements for energy production.

Life survival and sustenance on the planet is dependent upon clean air, water and food chain maintenance, not achievable without an aggressive climate change policy.

Hybrid policy targeting carbon emissions through carbon tax and cap & trade is the viable solution from the economic and political standpoint, other than possibly winning bipartisanship in the climate bill legislation in the United States.

Humanitarian Issues:

Water scarcity and inadequate food supply is the global challenge confronting humanity.

Emerging markets favoring globalization have a primary responsibility in addressing the plight of the vast majority in their domain rather than exclusively focused on GDP growth.

The population in Africa, Latin America, Asia and the Middle East cannot be ignored by the affluent nations and their $100 billion commitment in economic aid during the G20 meeting reflects meagerness and not eagerness to alleviate suffering on the planet.

Poverty being the reality, the global community can provide to the needy by reining in on personal greed.

Communal development against concentrated growth guarantees a bright future for humanity.

Global progress and prosperity begins with economic equality, social justice and political freedom.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | 3 Comments 

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