Daily Flog: Saudia Arabia bails out homeowners while we still haven’t


While our government is dragging its feet on bailing out endangered homeowners, one of the most repressive regimes in the world, Saudi Arabia, has already committed $3.2 billion to bail out its low-income borrowers.

Don’t blame FDIC Chairman Sheila Bair. My homey from the University of Kansas laid it out for Congress last week (“Daily Flog: It’s so bad that capitalists plan to help proles”, Press Clips).

The week before that, on October 16 (“Daily Flog: Wall Street down the drain; White House plumber summoned,” Press Clips), she told the Wall Street Journal:

“Why there’s been such a political focus on making sure we’re not unduly helping borrowers but then we’re providing all this massive assistance at the institutional level, I don’t understand it. It’s been a frustration for me.”

For quite a while. At a mortgage industry conference a year ago (as the AP recalls), Bair told the bankers themselves to get aggressive about modifying loans:

“Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it.”

Neither Congress nor the mortgage bankers has taken action. As for Treasury Secretary Henry Paulson, the ex-CEO of Goldman Sachs is focused on bailing out his Wall Street buddies, instead of Josephine the plumber.

Paulson won’t listen to the highest-ranking woman in the federal government’s financial sector — even though she’s also a Republican.

But Saudi Arabia’s rulers, who don’t listen to any women, are bailing out beleaguered homeowners.

Yes, Saudi Arabia, which still flogs women for having sex, makes women cover up from head to toe in public, won’t let women drive, and forbids women from even traveling without written permission from a male.

OK, so Saudi Arabia probably doesn’t even let women buy houses. But it is at least helping out its low-income male mortgagees.

Meanwhile, somebody needs to bail out Isiah Thomas.

Here’s more grist . . .


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