Well President Obama is going to help him and millions of others using about 75 billion of our taxpayer dollars to bailout the lenders and borrowers who made and got loans that should have never been made in the first place. And guess who is going to help pay for this foreclosure bailout plan. Yes you and me the responsible tax payers!
Here is what President Obama said:
" We have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and refinance their mortgages. It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford."
Oh yeah Mr. President? The Associated Press has Ben Bernanke telling us something completly different:
"AP, Feb. 25: Defending the program Tuesday at a Senate hearing, Federal Reserve Chairman Ben Bernanke said it's important to save those who made bad calls, for the greater good. He likened it to calling the fire department to put out a blaze caused by someone smoking in bed. "I think the smart way to deal with a situation like that is to put out the fire, save him from his own consequences of his own action but then, going forward, enact penalties and set tougher rules about smoking in bed."
No Mr. Bernanke the person who is smoking in bed deserves to get burned. You don't just toss the cigarette to us taxpayers who just happen to live next door and think everything will be fine.
Then there is this ends justify the means rational from Sheila Bair:
"I think it's just simply impractical to try to do a forensic analysis of each and every one of these delinquent loans," she told NPR.
Wait a minute! You don't think it's practical to look at these loans. Isn't that how the banks got into this mess in the first place? But, there's more to this idiotic logic.
And, Bair added, it's in the "collective economic interest" to not have more foreclosed homes on the market. "To try to punish all of those parties now by foreclosing on more homes, putting more families on the street, putting more houses onto the inventory, creating more downward pressure on home prices when you have so much inventory on the market right now. Is that in our collective economic interest to do that? I just don't think that it is."
That's the problem with people like this in the Obama administration they don't think! While foreclosure is certainly bad for the reckless borrowers and the banks who gave out the loans. Having us responsible taxpayers bail this bad behavior is not the answer. Let the foreclosures happen and then there will be opportunities for more responsible people to get into these homes. People like:
Lynn Powers, 39, a Bethesda, Md., resident who describes herself as a “liberal Democrat” who has been hardworking, prudent and responsible — and now feels “like a fool."“We were in the market,” she says. “We put out eight bids and got outbid every time. It was very upsetting for us. I want to see some accountability and responsibility across the board. The only way for me to have an affordable home, and I’m not looking for a McMansion at all, is if we let the chips fall, in a sense. This is still the bubble — the prices have to come down. You can’t just subsidize some of the people. I don’t know how you deleverage. It is going to be painful, but this is also hurting the people who behaved responsibly.”
What does she mean by “responsibly”?
“People who didn’t overbuy. Who stuck to their guns. Who read their contracts,” she says. She and her husband wound up buying a 600-square-foot studio and moved to a rental when they had their daughter, now 18 months old.
“My husband and I paid for our cars in cash,” she says. “We have no credit card debt. We have no student loans. I don’t buy Starbucks, but that’s because they’re non-fair trade, nonenvironmental.”
When they tried to buy a house, she said, “We just felt outgunned.” And now, she says, “I feel very outgunned as a citizen.”
And she should feel out gunned. Her government is subsidizing the people who out bid her on some of those houses. Now when she and her husband might be able to grab a foreclosed property at a reasonable price the Obama administration is rigging the market. This chart from a TIME magazine article shows what has been happening due to the foreclosures.
The chart shows home prices approaching a more normal average so that responsible people like Lynn Powers and her husband can get another shot at being a homeowner. But, Obama's plan is to stop the foreclosures and so keep house prices artificially high.
I think this woman from Maryland pretty much sums up the feeling of many of us responsible taxpayers to Obama's misguided plan:
“I am an Obama supporter, campaigned for him, baked cookies for him; my husband and I are Democrats all the way, but this is the issue that gets our goat.”
Echoing Santelli’s complaint, a Silver Spring, Md., mom who did not want her name used adds: “I’m not sure why we should work and pay for someone else to have a granite countertop or an extra bathroom.” When asked about people who hadn’t overreached but had lost their down-?payment money when the value of their homes had dropped, she replies, “We put money in a 401(k), and we lost that money, and no one is going to give it back.”-Politico
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