When he announced he was running for president, Obama instantly became the news media and Hollywood’s darling, the John F. Kennedy of his generation. But reality is much different than fiction and President Obama may go down in history as having one of the most failed administrations. Despite his poor track record of government spending to heal a sickly America, Obama announced yet another government program this week.
Under the auspices of We Can't Wait, Obama announced Home Affordable Refinance Program (HARP) in Las Vegas, the nation’s foreclosure capitol. HARP is supposed to help homeowners with loans backed by Freddie and Fannie refinance to lower rates, even if borrowers are underwater on their mortgages—owing more than the homes are worth.
This newest and biggest idea from team Obama won’t work because his $50 billion Home Affordable Modification Program known as HAMP didn’t work either. Obama boasted HAMP would prevent 4 million Americans avoid foreclosure with lower monthly payments. To date Treasury claims about 700,000 have been helped but the default rate for HAMP borrowers was estimated to be as high as 65%.
The problem is most of these people should never have had these loans in the first place and the government sponsored enterprises Fannie and Freddie fueled the housing crisis by encouraging lax lending. Instead of putting a band aid on a problem, the Obama administration should allow the foreclosure process to work itself through. Fannie and Freddie are also part of the problem. Both own 70% of all home loans; taxpayers had to bail them out to the tune of $160 million and if they refinance these bad loans under HARP, taxpayers will be on the hook for more money because these borrowers will likely demonstrate a high risk of default like their HAMP peers.
Obama refuses to learn from his mistakes and continues to obsessively push a spending agenda even Senate Democrats refuse to pass (budget, jobs bill, etc.) The Simpson-Bowles Debt Reduction Commission, created by Obama, concluded the nation’s debt of $14 trillion is “unsustainable” and was “driven in large part by two wars and a slew of fiscally irresponsible policies.”
Obama ignored the commission’s proposals including: simplifying the tax code, Social Security, Medicaid and Medicare reform. From Hope and Change, Change We Can Believe In to We Can’t Wait, Obama is full of catchy phrases and condemnations of millionaires, billionaires and those awful Republicans who won’t let him have his way. But what Obama is short on is successes.
Obama has been the architect of one failed, costly program after another. His scorecard as president doesn’t beckon lots of HOPE. Here’s a smattering of highlights:
• Presided over the worst Recession since the Great Depression
• Highest unemployment in decades: 9.1%; Highest black unemployment since 1984: 16.1%; black teen unemployment at 45%
• First downgrade of United States Credit Rating from AAA-AA-plus
• Rise in people on food stamps historic high of 45.8 million an increase of 34% from 2009.
• Median wealth of whites 20 times greater than blacks: average black household had $5,677 of wealth in 2009 compared to $113,149 for the average white household
• HAMP: $50 billion
• Colossal Stimulus: $787 billion, which didn’t stimulate jobs or the economy
• Cash for Clunkers: $3 billion
• Cash for Caulkers: $6 billion
• Proposed Jobs Bill: $447 billion, Senate Democrats won’t pass
• National Debt: $14 trillion; 62% of GDP and reach 185% by 2035
• Government Spending: 24% of GDP expected to 50% by 2038
• Income Taxes: Top 5% earners pay 59% of taxes
• Americans who pay n0 taxes: 51%
• New Regulations 2009-2011: 75 new regulations, 1827 rules amended; Cost of new regulations $1.75 Trillion annually
• 2012 Federal budget Proposed by Obama : $3.73 Trillion
With a record like this, it’s hard to fathom how Democrats can keep propping up Obama and his failed agenda. No wonder Americans are angry; 40% disapprove of the job Obama is doing compared to a slim 18% who approve of his performance, which is exactly why WE the PEOPLE CAN’T WAIT to vote Obama out of office in 2012.