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Elizabeth Warren on Welfare & Poverty

 


Foreclosures made recession's biggest victims

The White House and Treasury fretted over what to do. Rescuing everyone from foreclosure was impossible; it would create huge moral hazard, not to mention costing taxpayers another trillion dollars. But Elizabeth Warren's congressional oversight panel was scathing in an October report. Warren said the administration's plan didn't keep pace with the huge flow of foreclosures and did little to help the recession's biggest victims: the unemployed and those with subprime mortgages.

By the end of his first term, Obama would likely be able to say that he helped a few million Americans avoid foreclosure. Of course it wouldn't be much to brag about because millions more would be forced from their homes.

Source: The Promise: Obama Year One, by Jonathan Alter, p.319 , May 18, 2010

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Page last updated: Aug 06, 2014