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Kirsten Powers, Todd Schoenberger and Alex Bill on the impact of the government’s HARP program on banks as well as homeowners who need to refinance.
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Our let's get back to our panel Kirsten Powers a Daily Beast columnist Alex Brill the former chief economist for the house Ways and Means Committee.
And time Schlumberger of the black -- group welcome back all I wanna get you to.
Fascinating story today from the pages of the Wall Street Journal.
About how -- the government programs out there to help people in trouble with their mortgages called -- Is actually benefiting banks more than it is benefiting individual homeowners take a look at these numbers.
Banks have collected twelve million dollars in revenue this year while borrowers of people or intend to be helped with this program.
And only gotten 2.5 billion to five billion.
Personally start with you what do you make -- it.
You know of course you want the -- we want our banks to do well.
But what we don't want is gonna take advantage of people and that's what's going on here which is because they have a monopoly basically.
On this they're they're charging exorbitant fees and it's just.
I -- I don't want to say I don't know what motivates -- people why why why you know how much money is enough money you know it's like we're just what we're running out of have of -- problem are these just created -- crisis.
Now doctor you need to banks out there the banks to realize that the banks are gonna have to step forward they need -- help these homeowners and look it's up to the homeowner they don't need to do this but when they want to renegotiate they want to refinance.
A -- the bank is there what else is out there there's no other source.
Don't need to do it -- -- our a lot of people have and you know -- people are very bad straits that do need to refinance they even already keep their home is studies show that -- I was slowing sales are what we have with the banks as an opportunity for the banks.
To facilitate these transactions and an Italian insurance -- -- winner is higher than the norm.
Right but these are -- publicly World -- I don't think we're gonna higher than the average looked I don't think yeah I have a fiduciary responsibility to shareholders -- -- -- this year.
Irresponsibility of the shareholder.
At the end of the day that's an unintended consequence of the program though is that Kirsten.
That the banks are making all this money in the people aren't getting it -- the banks are doing anything illegal they're doing exactly they should be.
Under the terms of the program they're charging people more bad credits more money for their -- as they should -- But again the government steps -- and what happens the program hurts people it -- Wow I mean I want they want reminds you -- Person go ahead and then we'll get to -- I say -- more inclined to say that Asia should -- run you know what.
The did the government not through a -- I don't agree I don't agree that they should be charting beastie is I don't think they should be charging.
You know according to the wall children are well they are charging above what will meet commonly charged for her to -- charges -- -- Luckily we're -- accountability here their TPW isn't up to the homeowner why did they have to get this look I can understand if you hit a dire circumstance you lose your job to lay off I get that.
But a lot of people actually many people millions of people obtain loans they bought -- -- they should have been buying up.
And now they can't pay the bills and yet they're going hat in hand -- these banks.
Alex and I think I noted an urgent that the though funds that are going to these banks are not coming out of the federal treasury to -- coming from US treasury.
They are earning season they're providing a service it's a highly competitive industry got a lot of banks some of them are much bigger than the others no question about it.
But their homeowners -- -- good to shop around they have vehicle blood transparency now and in a refinancing deals that you know what you're paying for.
And they're getting paid for services that they're being provide.
All right let's look to Monday agrees to -- what happened this weekend at the polls.
There you know we're expecting an -- big boost for the stock market didn't happen.
My question he is person starting with you know I shouldn't our government get involved in helping bail out Europe is that the next step that needs to be taken to stabilize the world.
Economy act absolutely not true.
I did just I just do not see how this United States needs to get involved and that -- does Europe's issued they need to deal what that.
I had I -- we our own problems here and I don't see how us what what are we where we get the money even do that the first place it's.
You know I just cannot -- imagine why anybody would want us to do -- what's the next best step.
That's and we need to help out we need to give money to BI and that we need -- help bail out Europe look.
Europe is China this is what your viewers want to know Jerry US Europe is not is China's number one customer of -- in close in falls into a deep depression.
China slows down -- China is not there then they can't buy our US treasuries.
Aren't you the free market capitalist.
And yeah.
So this is this is my my -- -- Geithner -- yeah.
-- -- -- It's a vicious cycle I don't get that.
But we need to help them not I'm telling you we don't know well -- I don't think we have the resources I'm with -- -- on this one.
I think that the European.
-- -- to get together they have to help -- weaker Brothers and sisters they need to but have a system that's balanced and and look at wasteful spending -- the things that the unfunded liability that they have.
United States cannot get into this game we -- -- forward to help them they need to.
Themselves person you want last word here.
What I say let's just talk about the -- as -- -- have to do we got to borrow money to bail them out and now I mean that's just crazy.
Well -- brown and I'm the yeah.
Yeah borrow up around have a lot of money well -- -- borrow from time.
But actually be an option that there you know -- -- -- thanks for coming on tonight -- you're just great appreciate your time thanks for evidence.
