Community meeting wants foreclosed homes saved

By Ed Felien
published December 1, 08

“If they can bail out Wall Street, then they should be able to bail out state governments.” The State of Minnesota is looking at a $4 billion deficit next year.

A community meeting of around 60 people met at Walker Church Saturday, November 22 to discuss the current economic crisis and try to understand what it will mean to the most vulnerable in our community.

Karen Redleaf explained in simple terms how speculators gambling on bundles of subprime mortgages were able to bankrupt major commercial banking houses. Jeffrey Skrenes of ACORN talked about how mortgage companies used to redline neighborhoods and generally not grant mortgages in those areas, but, more recently, they were greenlining those neighborhoods to make loans with adjustable rates, low down payments and many fees. These mortgages became very profitable to lending institutions, particularly since they could sell them to Wall Street commercial banks, and they didn’t really have to worry about the borrower being able to pay back the loan. It became a house of cards ready to collapse. Linden Gawboy on behalf of the Welfare Rights Committee talked about how the crash and resulting loss of revenue for the State of Minnesota is going to mean major cuts in health and social services. She said, “If they can bail out Wall Street, then they should be able to bail out state governments.” The State of Minnesota is looking at a $4 billion deficit next year.

There will be a demonstration on Wednesday, December 3 at U. S. Bancorp headquarters at 800 Nicollet Mall at noon to remind the bank that the $6.6 billion they got from the U. S. Treasury and us taxpayers was meant to refinance mortgages and not for executive bonuses and dividends to stockholders.