"Project Lifeline"-Plan A failed, huh?

Background: here in the USA we had about half a million foreclosed homes in 2007. It is quite possible that we may end up with twice as many in 2008, a cool million. It is important to prevent this bad thing from happening for two reasons.  First, it is a tragic and demoralizing thing for any family to be kicked out of their home and left on the curb with all their earthly possessions. Second, this process of home foreclosure is damaging the economic prospects of all of us who are NOT getting foreclosed, because our home values slump, and our stock market shudders from a weakened consumer economy.

 The Bush Administration trotted out a new plan yesterday to solve the foreclosure crisis! It's called "Project Lifeline". Basically it consists of a plan to enlist the six largest lenders (who handle half of all home loans) to provide 30 day grace periods for families facing foreclosure. During these thirty days, apparently there will be frenzied efforts to come up with an alternative to foreclosure. This is however where it gets fuzzy. What exactly is the alternative?

Of course this plan got some criticism. Senator Clinton pointed out that she took the mortgage mess seriously a year ago, and proposed at that time a 90 day moratorium on subprime foreclosures. What the heck, says I. How about a twenty year moratorium on foreclosures? Wouldn't that Whip The Whole Problem?

This article does not really have a punchline. My point, if I have one, is that we do not have a solution to the problem, despite the fact that you are being told not to worry. Don't worry about the mortgage mess! Be happy! In fact, go out there and buy a house, even if you have one already! And Project Hope is supplemented or replaced by Project Lifeline.

Do not be surprised if Project Lifeline gets replaced this summer. I think the new plan is going to be called "Project Raise The Dead From Their Graves" or some such.