Jesse Jackson on Democracy Now: "Restructure, Not Repossession!"

[flpoljunkie]

“Bush Offers an Umbrella When We Need a Tent”–Jesse Jackson Says President’s Plan to Prevent Foreclosures Doesn’t Go Far Enough

President Bush announced a plan last week to freeze interest rates for some homeowners facing foreclosure. But critics say the plan”s strict guidelines will leave out the most vulnerable. We speak with the Rev. Jesse Jackson who is helping to organize a march on Wall Street today dubbed “Save Our Homes—Fight Home Foreclosures, Defend Our Economic Rights.”

The nation’s housing crisis has been called the biggest immediate threat facing the U.S. economy today. Amidst growing unease, President Bush announced a plan last week to freeze interest rates for some homeowners facing foreclosure. But critics say the plan”s strict guidelines will leave out the most vulnerable. The Center For Responsible Lending says Bush”s plan will only help about seven percent of sub-prime borrowers—or about 145,000 families.

A subprime loan offers borrowers a mortgage—but at a disproportionately high rate they often can"t afford. The subprime market has fueled a record one million foreclosures this year, with an estimated two million expected in 2008.

A growing coalition of housing and civil rights advocates are calling for federal intervention to protect homeowners from foreclosures. Today, those calls are coming to the hub of the lenders and investors behind them. Demonstrators will gather in the heart of Wall Street for a march dubbed “Save Our Homes—Fight Home Foreclosures, Defend Our Economic Rights.”

The Reverend Jesse Jackson and the Rainbow-Push Coalition have helped organize today’s march. Rev. Jackson joins me now in the firehouse studio, just blocks from where he"ll lead the rally at noon today.

http://www.democracynow.org/2007/12/10/bush_offers_an_umbrella_when_we

[mod mom]

1. Makes sense to me. The punishment for these loans should fall on those who issued them.

[Zywiec]

2. For the people who can't afford the current rate

how would freezing the rate help them? If I understand, the president's plan is to freeze it only for the people who are current with their mortgage payment. It sounds like everyone else will need to renegotiate their mortgage.