President Obama can declare immunity for hundreds of thousands of illegal aliens and can also unilaterally order the broad refinancing of mortgages on millions of “underwater” homeowners in order to reduce principal payments and debt, The New York Times’ Paul Krugman told the liberal “Take Back the American Dream” conference on Tuesday.
One of the benefits of such a move, Krugman said, would be some additional economic activity at a time when the economy is sluggish. But another benefit is clearly political and could provide the votes Obama needs to be re-elected.
Speakers at a subsequent “Taking on Wall Street” panel agreed with Krugman’s approach and went further, declaring that “underwater homeowners” constitute a “huge powerful voting bloc” that could help re-elect Obama in November.
“That will bring voters to the polls,” Richard Eskow of the Campaign for America’s Future said of the proposals for Obama to extend debt forgiveness or principal reduction to millions of people.
The term “underwater” technically refers to owing more on a home than it is worth. Many of these homeowners, estimated at 15 million or more, might not qualify for refinancing because their current income doesn’t meet the lending criteria, or because they haven’t paid enough on the principal.
Read More at Canada Free Press. By Cliff Kincaid.