Another Mortgage Bailout Looms

by Ryan on September 5, 2010

in Economy,Election 2010,Politics

Democrats need voters to show up in November.  All indications are that an electoral knifing is in the works.  So what’s  Obama, the leader of the Democrat Party, going to do to try to help them?  Well, research and development tax credits are on the way, but I’m sure there will be plenty of “green” strings attached to them — this crew is too into social control to just let tax credits be tax credits.

However, there is likely to be another prong to Obama’s approach this Fall:  helping struggling homeowners whose homes have been devalued to refinance at or near its current market value.  This is an extension of the old HAMP (Home Affordable Modification Program) housing bailout, plain and simple, using leftover TARP funds to flip the bill.  Even though an estimated 20% of the million or so people who qualify will have to foreclose anyway, we simply can’t let the market do its thing when there are votes to be bought.

There’s the rub.  Why didn’t I buy a $700,000 home with five bathrooms, ten acres, and a gate with my initials in gold letters on it with my teacher’s salary?  Because I can’t afford it.  Looking at it from another angle, you are going to end up paying for your stupid neighbor’s mortgage because he’s in over your head, even though you played it smart and bought a home you could afford without the snazzy lettered gate.

Rewarding bad behavior against market forces for a few more votes in November — it’s got Obama Nation written all over it.  Anyone who bought a home responsibly during the past decade should really be pissed off if this new bailout manifests.

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