Who's running the show?

I read today that Fannie and Freddie are saying it’s OK to go ahead with sales involving foreclosed houses. That’s probably a good thing, since sales of those homes have been stalled by the legal actions in several states against shoddy bank foreclosure practices. Of course, not to be thought of as Scrooges, they also said that they would not evict anyone until the Holidays are over. How nice of them.

I also read that the Comptroller of Currency has ordered banks not to continue foreclosure proceeding against people with whom they have entered into the loan modification process. That makes sense, since they have on the one hand decided to see if this person can save the house if his loan is modified. To turn around and on the other hand (and most would probably say behind their backs) keep processing the foreclosure, perhaps even speeding it up because of delinquencies that are a part of the loan modification process, doesn’t seem fair or make any sense. Either give the guy a break with a loan mod or take the hose, but don’t give false hope of a loan modification, while during the process continuing the foreclosure procedure. That’s just wrong.

In other news from the asylum we call Washington, the Congress seems ready to add to the deficit by passing the extension of the Bush Tax cuts for all while also adding “sweeteners” for both the rich and poor. This all comes just after the President’s Deficit Reduction Panel released it’s finding that massive spending cuts and tax increases will be needed to get rid of the deficit mess. Only in Washington could the report of a patient dying from loss of blood be “cured” by suggesting that we attach more leeches to the poor devil.

Elsewhere in the news there was consternation about the suggestion from the debit reduction panel to eliminate the tax free sale status for real estate transaction over $500,000. That is among the sacred cows threatened by the need to reduce Federal spending or raise revenues by eliminating tax breaks. Tax breaks are like sacred cows in India or sacred monkeys in Thailand. No one wants to touch them, no matter what havoc they may cause. They have become like entitlements in America and are often mistaken for rights.

It is hard t see much pattern or logic in much of what passes for government in Washington these days. It has devolved into an show akin to the glory days of the WWF Saturday night Smackdowns. The stars from both political parties seem more interested in carefully orchestrated showdowns and posturing for the media than in actually trying to govern. It might all be amusing to watch, if the consequences on us all weren’t so profound. As it is, it’s just scary to watch.