(Assemblyman Lieu has been a leader on the foreclosure issue. Welcome him to Calitics. - promoted by David Dayen)
Albert Einstein once said that insanity is doing the same thing over and over again and expecting a different result. Wall Street and Treasury Secretary Henry Paulson have continued to ignore the home foreclosure problem, despite clear and urgent warnings from consumer groups, legislators, and regulators. Virtually none of the $8.5 trillion in federal taxpayer bailout commitments is directed towards helping reduce foreclosures. So it should come as no surprise that new data from the Mortgage Bankers Association shows that foreclosures have increased 76% compared to a year ago to hit yet another record high, with a record 1 in 10 Americans now experiencing mortgage trouble.
The problem is particularly acute in California, which accounts for one-third of the nation's foreclosures. California alone has 54 percent of all foreclosure filings on adjustable rate loans.
