President Obama has announced another bailout program the will “begin to turn the page on an era of recklessness” and stop the “abusive practices” of the evil companies that provided mortgages to “responsible homeowners” who were flim-flamed by a pack of Wall Street fat-cats. Oh, those horrible 1% er’s! $25 billion seems like a lot of money; but only 10% of the mortgage holders will be able to qualify. And, even if a homeowner was, by chance, swindled by the mortgage company and “improperly” lost their home, the maximum they could receive is $2,000!!!! Oh, did I mention that all the loans held by Freddie and Fannie are NOT eligible for this program. Guess who guarantees more of the nation’s mortgages that any other company…….yes, Fannie and Freddie! So, the whole program is just another part of Obama’s whimsical pretense of being the leader of the free world. A ploy designed to have Obama perceived as the great protector of the middle class as he attempts to, triumphantly, return to his throne for his final term as POTUS!
The program is basically a way of penalizing “robo signing” as a practice when, in fact, beginning in the 90’s under the Clinton administration, there has been a push by the government to help American realize their “entitlement” to own a home! Loan standards were reduced, innovative deals, like interest only, balloon payments, etc., became common place. People lied about what they made; and some mortgage companies aided and abetted in the illusion as they competed for the loan dollars. Ultimately, the system crashed and sent America into the recession that has plagued the economy for three+ years! This foreclosure deal is just another safety net rewarding bad behaviour.
This is nothing more than the appearance of motion! More blah, blah, blah!!!And, provides nothing for the real heroes of the crisis……those that sacrificed to make their monthly mortgage payments; and continue to do so today. What is their reward? Probably higher banking fees to finance the bad practices of others! The ultimate outcome is the perception that “the government is here to help you!” We know that, in the long run, government involvement is costly, inefficient, and politically charged! Beware!!
2012 – End the Error of Obama!