So there's something else the President can do without Edward DeMarco's permission, and its importance shouldn't be minimized: He can clearly and forcefully explain the massive injustice that's been done to these homeowners. (See our "Moral Hazard Scorecard" for more details.)
The President can demand justice. He can tell Wall Street he'll do everything in his power to restore justice -- and we mean everything. Many people remember Franklin D. Roosevelt's heated war of words with Wall Street. ("I welcome their hatred!") Far fewer recall how bankers stung by FDR's rhetoric and fearful of public rejection voluntarily pledged to do more -- and did. Rhetoric matters.
With or without Edward DeMarco, the White House can take concrete steps to help homeowners -- and it can use the President's "bully pulpit" to fight back against the bullies. The only way homeowners will know that the Administration's doing something for them is when it does something -- really does something.
If the President and his team move aggressively on principal reduction, their actions won't just help underwater homeowners: they'll also help the whole economy. That could prevent the President and his party from getting the grade that all politicians dread at election time -- an "F."(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
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