EconomicCrisis.US

For more than an hour in a crowded downtown Manhattan courtroom Monday morning, Bernard Madoff sat and listened as victims of his massive financial fraud spoke of their shattered lives.

To some he was a beast and a monster; others begged God not to spare him any mercy, and one 65-year-old pensioner told how she was now living on food stamps. Many said he had shown no remorse.

He did little to change that image Monday when it came his turn to address the court. He stood impassively in a dark grey suit, white shirt and black tie, his voice measured.
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Recession. Economic crisis. The air is abuzz with these words, from the concerned whispers of colleagues and friends, to the speculation and predictions of the media. Who will sink? Who will swim? How bad is it? How long will it last? Although it came as a shock, the current economic crisis serves as a reminder of the oldest, most pervasive and predictable aspect of life itself: change. The only thing that is certain, is change. In our society, our attitude toward change is often of sticking our heads in the sand. We try to pretend that it doesn’t exist. We become rigid, seeking the illusory permanence of routine to make us feel safe, to feel in control. Many of us spend our lives dedicated to creating a stable environment; a solid career, a dependable spouse. But even the longest marriages can end in divorce, the largest fortunes in the world can dwindle down to nothing.
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A $75 billion plan to prevent millions of families from losing their homes has become bogged down as a result of mortgage lenders reacting too slowly to the crisis, leading some experts to wonder if banks are deliberately undermining President Barack Obama’s effort. Joel Naroff, of Naroff Economic Advisors, told USA Today, “Some lenders may not be turning (homeowners) down right away because it might be politically easier to push them off and delay. No one will admit they’re doing this.”

Under the plan unveiled in February by President Obama, the federal government is offering mortgage companies $1,000 for each loan they agree to modify, then another $1,000 a year for up to three years. Since then, however, millions of homeowners have slipped into delinquency and foreclosure, due to the slow response by lenders to applications that were filed months ago. Government and banking officials blame the problem on companies not hiring enough staff to process the flood of requests for mortgage adjustments.
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After nine harrowing months on the brink, it appears the U.S. economy can be taken off life support and moved out of intensive care. All concerned can breathe a deep sigh of relief. Disaster has been averted.

Which might explain the recent improvement in consumer confidence despite still-rising unemployment and yet another seemingly inexplicable spike in gasoline prices. In this case, just surviving is sufficient cause for celebration.

But for all the talk of economic green shoots, the road to actual recovery will be long and arduous. Governments worldwide have moved forcefully across an unprecedented number of monetary and fiscal fronts in a desperate attempt to prevent financial Armageddon. And to their credit, they’ve succeeded.
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