Tuesday, July 27, 2010

Elizabeth Warren: The next Foreclosure Crisis

PBS has an interview with Elizabeth Warren, Chairwoman of the TARP Congressional Oversight Committee, in which she discusses:
  1. The value of the newly formed Consumer Financial Protection Bureau (CFPB) in providing Americans with understandable credit card, mortgage, and loan contracts;
  2. The upcoming wave of commercial real estate foreclosures. 
http://video.pbs.org/video/1547461509

Tim Geithner (Obama's Treasury tool), has obviously made a number of duplicitous comments about Warren by publically praising her credentals, while putting up internal barrcades to her possible role in the upcoming CFPB agency. As critics of have pointed out, Geithner perceives in Warren a "threat to the very scheme he has utilized to date to hide bank losses, thus keeping the banks solvent and out of bankruptcy court and their existing management teams employed and well-paid." 

On the second issue, Secretary Geithner has publically stated, when questioned by Warren, that he believes there is sufficient management of the overall risks surrounding the commercial real-estate market. As can be seen in the video, Warren civilly implies that Geithner and perhaps the entire Obama financial team are either deluded or incompetent when it comes to effectively discussing the urgency of the problem, the societal ramifications, and realistic solutions, so that the American economy can be made both secure and functioning.  As she says, "The longer you pretend, the longer it takes to get the market where supply and demand match each other."

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