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Obama vows to change bankruptcy laws
Xinhau News Agency ^ | January 18, 2008

Posted on 01/18/2008 9:34:54 PM PST by 2ndDivisionVet

LOS ANGELES, Jan. 17 (Xinhua) -- Senator Barack Obama, vying for the Democratic presidential candidacy, vowed to change bankruptcy laws and cap interest rates during his campaign tour in Southern California, the Los Angeles Times reported Thursday.

During what his campaign dubbed a "Roundtable on Economic Opportunity" there, Obama called for an exemption in the 2005 bankruptcy bill for people who can persuade a bankruptcy court that they filed for bankruptcy because of debts caused by medical expenses.

His proposal also includes extending the 36-percent limit on payday loans to military members to all Americans; encouraging banks, credit unions and community development financial institutions to provide affordable short-term and small-dollar loans; establishing a credit card bill of rights and significantly increasing emergency pre-foreclosure counseling resources, the paper said

"California has the highest number of foreclosures in the nation, and the economic impact on this state is expected to be over 23 billion U.S. dollars," Obama said, who kicked off his California tour Wednesday.

Obama blamed the federal government for not regulating lenders.

"It's an example of how when the federal government falls down on the job and is listening more to the special interests than it is to ordinary working families that we end up getting into these kinds of crises," he was quoted as saying.

Obama has proposed to create a 10-billion-dollar fund to help prevent foreclosures, eliminate some taxes and fees for families who must sell their houses, and offer counseling to homeowners.

He also proposed changes in the consumer credit card industry. "People are getting caught in a credit card system that is unfair," he said, faulting "teaser rates" that skyrocket, interest charged on late fees and hidden fees.

With Obama winning Iowa and Hillary Rodham Clinton taking New Hampshire, California, one of the biggest prizes on the Feb. 5 "Super Tuesday" that features 22 nominating contests, becomes a crucial battleground in the Democratic race to choose a candidate for the November presidential election.


TOPICS: Business/Economy; Constitution/Conservatism; Extended News; Politics/Elections; US: California; US: Illinois; US: Iowa; US: New York
KEYWORDS: bankruptcy; banks; barackhusseinobama; barackobama; ca2008; capitalism; consumers; credit; creditcards; creditunions; democraticparty; democratparty; democrats; electionpresident; elections; foreclosures; freemarkets; hillary; hillaryclinton; homeloans; interestrates; lenders; marxism; mortgages; obama; oprahcandidate; pandering; saulalinsky; socialism; subprime; supertuesday
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To: 2ndDivisionVet

I have no sympathy for the criminal New York banks and their usury lending practices.

They buy loan packages from smaller banks and then try to jack up the interest rates to 18% or better. I’ve contracted with banks for business credit cards at a 5% rate and then along come the New York criminals trying to break the contract without my knowledege or permission. I only find out after I open my monthly statement and see an exorbitant finance charge. Then I need to waste my time and money on lawyers threatening to sue these bastards.

If Obama wants to take down the criminal loan sharks in New York city, that’s fine with me.


21 posted on 01/19/2008 6:08:45 AM PST by sergeantdave (The majority of Michigan voters are that stupid and the condition is incipient and growing.)
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To: 2ndDivisionVet

cap interest rates

Whose going to invest where there’s no profit? How about outlawing fraud like ‘carbon credits’?


22 posted on 01/19/2008 6:35:45 AM PST by Son House (Protection For Opportunity Seekers And Tax Payers From Congress Spending: Low Tax Rates !!!)
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To: Young Scholar

The US has the highest per capita rate of bankruptcy of any industrialized country. Even though Canada has an identical system of consumer and mortgage debt the per capita rate of personal bankruptcy in Canada is nearly 40% lower than what it is in the US. The difference is almost entirely the result of the number of bankruptcies that are the result of what are called “catastrophic” health costs.

Under the previous Bankruptcy code medical debts were treated like other debts and the bankruptcy court had the power to deal with the ability of the bankrupt to repay the debt. However, the revised code takes that power away from the court and provides no reasonable alternative for the debtor. Financial professionals deal with bankruptcy everyday and they know you need to clear the financial deadwood from the system and where possible return it to a productive state. On the other hand, the health care system is filled with financial amateurs who thought they would get more money by simply holding debtors hostage to their insolvency. It was an incredibly dumb option totally inconsistent with an efficient capital market system.


23 posted on 01/19/2008 6:56:30 AM PST by spatso
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To: 2ndDivisionVet

Like a..a.. Empty Suit/Pant Suit Socialism Fer sure there dude/dudettes.


24 posted on 01/19/2008 6:59:28 AM PST by Don Corleone (Leave the gun..take the cannoli)
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To: RockinRight
Well right now they’re about 300% on “payday loans.” But it’s a two-week loan so it’s not exactly a fair comparison.

Yeah, about 300% annual compounded interest. Payday loans are actually quite reasonable --if people pay them back when they next get paid! Hence, the term "payday loan." Many of the payday loan places near military bases closed down after congress passed the 36% ACI cap on service members.

25 posted on 01/19/2008 7:12:53 AM PST by Drew68
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To: 2ndDivisionVet

Is that before or after he walks on water?


26 posted on 01/19/2008 7:22:11 AM PST by Piquaboy (22 year veteran of the Army, Air Force and Navy, Pray for all our military .)
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To: 2ndDivisionVet

Darn tootin’. We should have credit crunches and recessions every year!


27 posted on 01/19/2008 3:52:43 PM PST by dr_who_2
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