Thursday, February 9, 2012
$25 Billion National Mortgage Settlement
Out of the $25 billion settlement, Hawaii's share is a whopping $71 million. Even more whopping is the distribution to each Hawaii claimant .... $2000 per (actually up to $2000). That's like the bank wavering a month's mortage payment. Why who wouldn't be happy about that. Especially since you'd never ever finish paying the full mortgage even if you mailed in payments monthly for the next 50 years. There are band aids fixes and then there are band aids fixes so to speak. Also, $2000 pales in comparison to the $100,000 bonus that the bank's upper echelon gave themselves after the bailout money was in the vault. Why am I bringing up this topic? Well, the settlement should have provided for construction workers still outta work because of the fraud. True, construction workers were paid for building the new houses and new apartments units to meet the demand. However, they weren't paid anymore than their union wages. Then there's the issue of 'not working' where construction workers aren't earning any wages at all or very much of it. And since there's a backlog of unsold houses and foreclosed houses on the market, the construction industry will lag behind the rest of the economy even if this recession recedes. That might take years more.