IS THE HOME LOAN MODIFICATION PROGRAM WORKING

The issue of subprime loans and the foreclosures that has resulted out of it has no doubt decimated the U.S economy and continues to threaten our way of life. The current Obama administration and the U. S congress has tried to get the lending agencies to modify home loans in order to prevent many more homes from being foreclosed. Thats a step in the right direction but the most important issue is whether this strategy is working. From the information out there so far, there is still a hardcore line that this failed financial institutions thats being given life support by the federal government have taken to prevent meaningful progress from being made on main street. The concerns of main street is certainly not the concerns of wall street and this is manifested in their lack of empathy to main street. They have once again established their reputation as a ruthless entity thats an island with no regards for main street other than their profits and how to spend lavishly. Wall Street is just as vulnerable as main street but yet they have displayed foolish pride and arrogance in their response to this crisis. I proposed that they should have been allowed to fail and the tax payers money that was used in bailing them out should have been invested in serious enterpreneurs and small bizness initiatives which will make real and sustainable impact on the U.S economy. One way or the other, once the manufacturing sector of the economy is revived, the accountants will be invited to do the book keeping since thats all they do anyway. Yet tax payers money has been invested into fraudlent schemes backed by the government to give people the false impression that everything is ok. The financial institutions could have helped prevent the loss of homes if they had complied with the home loan modification program. All they had to do was remodify the terms of the loan by offering home owners the prevailing lower fixed interest rate. This would have reduced monthly mortgage payments and will at least encourage and boost the morale of families to keep their homes. The federal government could have also reduced or eliminated property taxes in high risk areas of foreclosure to ease financial stress on ordinary people. At least if the federal government was quick to identify that home loans had to be modified, it should have considered serious enforcement as it negotiates its program to bailout wall street completely. We now have main street suffering and not knowing what the prospects will be whilst wall street is still taking expensive vacations and continues to waste tax payer money on executive compensation. The federal government have not yet made such a prosal to main street and yet it expects recovery in that area. There will be no recovery if the financial institutions go unaccountable and without commitments to main street. Reconcile wall street and main street and you will have recovery. If wall street wants to be arrogant and ruthless the only way is to force them to take responsibility for their mess.