Barofsky: ‘Geithner Admitted To Us Privately That Obama’s Housing Policy Was DESIGNED To Sacrifice Homeowners In Order To “FOAM THE RUNWAY” For The Banks’
This is a doozey…
More secrets revealed about Geithner’s penchant for protecting Wall Street. From a July 24 appearance on MSNBC’s Morning Joe, that left the panel stunned in disbelief.
I bet Tim wishes he didn’t throttle Barofsky that one day…
Neil won’t stop torching the Treasury Secretary, everywhere it seems. I’ve got at least 10 Barofsky clips from the past week. Granted, it is a book tour, but praise the Rain Gods,because Geithner is being torched early and often by the ex-SIGTARP with a massive chip.I’ve written it before. Geithner tried to bully the wrong dude. As a general rule, it’s probably best not to threaten former Federal prosecutors. Exposing scumbags like Geithner is Acapulco beach-side, Dos Equis drinking, leisure and vacay to Barofsky, who dealt with death threats from Mexican and Colombian drug lords as a normal part of his old gig.
Neil Barofsky Transcript:
Some of the other goals that Congress insisted so that TARP could get passed, things about preserving home ownership and helping deal with the foreclosure crisis, promises that were made by Treasury that were later abandoned. You have a housing program that was supposed to spend $50 billion to help struggling homeowners. And as I detail in the book, Geithner admitted to us that it was really more about, in his words, “foaming the runway” for the banks. And the result? A program that to date has spent around 3 of the 50 billion dollars.
What he said was that the banks could handle a certain number of million of foreclosures over a certain period of time and any more than taht would put them in jeopardy, and this program would help “foam the runway,” help stretch out the foreclosure crisis. And that’s why more money has been spent, more TARP money went to American Express, a credit card company, than went to help all the struggling homeowners.
The HAMP bait-and-switch that Geithner organized inflicted real pain on real Americans:
The most disturbing parts of Barofsky’s book are stories of Americans who were made worse off by Obama’s bailouts. One California business owner who could have sold his house at a loss, but maintained some savings and his credit history, was enticed into a HAMP trial modification that was supposed to cut his payment in half. Instead, thanks to HAMP, he lost his house, his savings, his credit and his business.
Keep this in mind while Obama prattles on about his undying support for the middle class.