Reed Gusciora: Where is the Bailout For Americans?

TRENTON – In light of President Bush’s visit to New Jersey on Friday, Assemblyman Reed Gusciora (D-Princeton) is asking why the Bush Administration has provided over $250 billion to Wall Street banks in bailout money, while continuing to shortchange the average American. Bush will be visiting a credit counseling agency in Freehold, NJ, to hold a discussion on the current mortgage meltdown.
“These Wall Street brokerages backed high risk loans to people who they knew were unable to adhere to the payment plans, but they did it anyway,” said Gusciora. “When the loan defaults, the government is now providing a soft landing to the banks, but letting families go homeless.”
The Federal Government has supported such programs as “Project Lifeline” and “New Hope Alliance,” which do little more than counsel homeowners on resolving possible foreclosures.
“While the Bush Administration provides liquid cash to banks,” continued Gusciora, “they give the homeowner a 1-800 number, a mountain of restrictions, and only 30 days to resolve their problem.”
New Jersey currently ranks 13 th in the amount of foreclosures occurring per state. In Trenton alone, 314 high risk, sub-prime mortgages were issued in 2006, with many expected to default. Housing experts contend that house values can decrease as much as $2,100 for every neighboring home that goes into foreclosure.
“This problem will not go away by dropping off truckloads of cash at Wall Street’s doorstep,” concluded Gusciora. “Unfortunately, the Bush Administration continues to rescue the businessman instead of the working man. He is the most disappointing President in my lifetime.”