On March 12, real estate industry monitor RealtyTrac released data suggesting that the capitalists’ efforts to halt or delay home foreclosures have been ineffective. In February, foreclosure filings jumped 6 percent from January and were up nearly 30 percent as compared to February 2008.
Ameliorative programs established between lenders and the government as well as major banks’ self-imposed foreclosure moratoriums are not solving the crisis. February’s sudden jump indicates that the programs are doing little to save homeowners from their debts. Additionally, filings spike at the end of each moratorium period, indicating that the programs are only prolonging the housing crisis. This is because the programs are intended to stave off the loss of profits for bankers, not help regular people.
As more moratoriums end, another batch of sub-prime mortgages resets at higher interest rates and an expected expansion of the credit crisis hits, the working class will continue to be victimized by capitalist policies outside their control. An initial step toward a real solution is a program of assistance to homeowners and renters—keeping them and their families in their homes. Profit-saving programs designed by the bankers are not the answer.
