As we all know the Federal Reserve has extended over a trillion dollars to the Financial Sector outside of the Tarp Money that was allocated by Congress. The reason for this is the Executive Branch has the capacity to perform some unilateral acts in relation to the monetary system through the Treasury due to the Banking sector's relationship with the Treasury and the Federal Reserve which is crucial to Banking's ability to operate.
That relationship allows the President some latitude in affecting Banking practices.
The point being, President Obama would have the ability, through Executive Order, to impose a moratorium on foreclosures for an indefinite period of time while forcing Banks to renegotiate Mortgage terms with homeowners at risk of default. President Obama would also have the capacity to insist on Interest Rates on Mortgages being uniformly dropped to whatever percentage rate was required to stabilize the housing market. These were Executive Powers that President Bush chose not to utilize in addressing the housing crisis.
Within the First 100 Hours I would hope to see President Obama issue such an Executive Order to form a bottom for the housing crisis that is one of the major causes of our economic free fall.
About President Obama
Read the Article at HuffingtonPost
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