There’s No Such Thing as the Future, Just History that Hasn’t Happened Yet -Harry Truman
Bailout Will Harm Responsible Homeowners published October 4, 2008.
What a week. Where to begin? As you know a massive government bailout was passed this week with the goal of saving the economy. Today’s front page headline “Bailout is coming, but will it work?” Good question. In my opinion the headline should have been “Bailout coming, was it necessary?”
The bailout represents much more than the $857 billion dollars of your tax money pledged to be spent to save the economy. Once again irresponsible earmarks were attached to the plan to bribe congressmen to change their votes. Rum distilleries in the Virgin Islands get $20 million, wooden arrow makers get $8 million, and corporations get a $300 per employee write off for employees that ride bikes to work.
The pilfering of the treasury for these earmarks is not what I’m referring to. Read the last paragraph quoting Barney Frank in the article. To quote: “Congress will tackle next year; overhauling housing policy and financial regulation in a legislative effort compared to the New Deal”. Welcome ladies and gentlemen to America’s new and improved socialized housing market.
I will bring you up to speed when I have read the bailout bill housing clauses. Reported so far is a homeowners protection clause, that will establish an expanded bureaucracy to help people in foreclosure save their homes. In other words a bureaucrat will tell banks to adjust interest rates, and lower principal on loans. The bill also gives bankruptcy judges the same power.
Ninety five percent of Americans pay their mortgages on time. What this bill does is to reward people for defaulting on their mortgages, with paying down their principal with your tax dollars, and giving better rates than responsible mortgage payers can receive. In the name of helping an infinitesimal number of homeowners defrauded by predatory lenders, this bill throws out the baby with the bath water.