More failed policies of the past?
Today President Obama put his Mortgage program.
On one hand, at least Obama learned to not delegate this plan to Pelosi and Reid (Stimulus) or Geitner (Tarp). Pelosi and Reid filled up the Stimulus full of Pork project that they have been dying to fund. I mean, gee, I wonder who would want an $8 billion dollar high-speed rail from Las Vegas to Los Angeles? Being from Las Vegas, I can make an educated guess, and it wasn’t John Ensign. Of course Obama said that there were no earmarks, so it must be true.
Geitner’s TARP plan is a joke. He will get us the details later.
Obama’s Housing Plan is a joke. I’ve been telling people at work for a while now, that Obama will spend as much money as he can all the while using Fear to sell it to the public. No matter if you think this recession is a catastrophe waiting to happen, or you’re like me and think its much ado about nothing is irrelevant.
The amount of money being thrown at it is horrendous. We already spend almost $700 billion for TARP, a program that was sold as a fix for the Housing Crisis. Where did the money go? Who knows, ask Pelosi and Reid. They wrote the original TARP bill. Bush did a terrible job handling it for sure. He never should have given money to GM and Chrysler too. Of course we are supposed to learn from our mistakes. Apparently not our new President, given that the second half of TARP money has no details either.
The new Housing bill, which I’m sure will be absolutely required to pass or yet another
”catastrophe” will happen, is the same old same old. Look at who gets the money.
- $100 Billion to Fannie Mae and Freddie Mac.
They were too big to fail before, so lets just make it grow bigger. Instead of tackling the problem, the over valuation of housing in the US and irresponsible lending and borrowing habits of the American Public, we are rewarding Failure.
- A provision to “Allow Judicial Modifications of Home Mortgages.”
My gods, so now all those people that were irresponsible to begin with, borrowing money they couldn’t afford to pay back, will just get a pass? Why should I even pay my mortgage? Why should anyone? We can all just go into default, go to bankruptcy court and have the judge modify our mortgage contracts letting us off the hook. How are they going to do it? Will it be interest rates or principle? Who will qualify?
If you look at the bill, there is an awful lot of money going to “servicers” (third parties) and “mortgage holders” (banks). I wonder how many of them are friends of Chris Dodd? The only people this bill helps are bankers and lawyers.
Here are some questions that need asking:
- Why should the Government be guaranteeing these at risk mortgages again, isn’t that why we got here in the first place?
- Why should the Government (judges) be setting interest rates?
- Who get the bailed out and who doesn’t?
- Why are we rewarding irresponsible behavior?
The quest for affordable housing is what got us in this mess. It lead to the Government forcing banks to give home loans to people that should never have gotten them in the first place. The Community Reinvestment Act, singed into law by Carter, and expanded by Clinton started this whole snowball, all in the name of fairness. How is it fair that I now have to pay, through taxation, for other peoples reckless borrowing? I work, pay my taxes, pay my mortgage for a house I knew I could afford, yet now have to pay for someone else’s house because they cashed out their equity during the bubble? Paying for the people that willfully signed onto an Adjustable Rate Mortgage. I am being forced to pay for people that thought they could afford a $300,000 home, even though they only made $30,000 a year. Please explain to me how that is fair?