Let’s “Spread Those Mortgages” Around

Of all the ridiculous failed attempts to solve the current financial crisis, the latest attempt by the Obama administration to “spread that wealth around” by spreading mortgage payments from people who didn’t play by the rules to people who did, this one’s the worst. It really can’t get much worse than this. Well, where there’s a will, there’s a way, and this sure is an administration full of big ideas and “hope”. So, if you think they can no longer take from those who DO to give to those who DON’T, the answer is “Yes, We Can”!

Do not be Fooled by Promises and Statistics:

1. The only certainty is that every prediction and promise made related to how these various bailouts will turn out to be wrong. Examples: GM handout - told you so - they’re back for more already, TARP Funds have already lost over 25%, and give this housing mess a few months to rear it’s ugly head. Perhaps I’m wrong and we’ll recoup all these (now trillions) of dollars, plus the interest on it, plus the loss we’ve already incurred, and actually turn a profit for the taxpayers. I doubt it, but I could be wrong as well.
2. The administration is putting numbers to how many households they’re helping and how many foreclosures they’re going to prevent. Millions. Right. Many of the these people that the administration is sending our tax dollars to never should have been homeowners and they shouldn’t be in the future. They will not meet their financial obligations at a 0% interest rate, let alone a “modified principal” or whatever they’re pushing.
3. I’m not going to cite statistics, but rather, based on my understanding of economics, history and human nature, it is my opinion that financial historians will look back on this policy as a complete failure and that many of the people who were subsidized by Joe Taxpayer will have either defaulted on their mortgages or required further modifications on their loans within the first few years.

The American Dream - Says Who?

Much of this mess in the loosening of standards at Fannie/Freddie and the misaligned incentives and risk-taking that occurred were propagated by the myth that EVERY American should be a homeowner. I’ll tell you, I’m a homeowner, and I love it. I cherish my life and the notion of owning something that’s mine. But, the reality is that it’s a lot of work, it costs a lot of money, it’s required significant discipline to stay current on my financial obligations while reacting to the various unforeseen financial crises that inevitably arise and I too, was a renter before I owned a house. The reality is, it’s OK to rent - really. For some people, this is the better option. It’s affordable, there’s less risk and responsibility involved, it’s easier to move for new jobs, it’s just a different lifestyle.

Don’t take it from me though -this is my favorite rant I’ve seen on this miserable distribution of financial burden from working Americans to disingenuous risk-takers, speculators and irresponsible behavior that is the new reality.

Rick Santelli Rant

After already recognizing that my kids will never qualify for the same college grants and loans that other less affluent families will, I’ve been putting money into my childrens’ 529 and ESA plans since they were born instead of spending it. Now, I will have to start putting more money aside to pay for my fellow Americans’ subsidized mortgages because I played by the rules and they didn’t. Inevitably, these debts will have to be repaid and we all know that means tax increases for people with middle and high income jobs. That means you and I.

Let’s face it, these when my children are old enough to understand the true implications of what we’ve done, the wonderous opportunities that we squandered as the world’s sole financial and military superpower and the untenable burden we’ve placed on them, I will be truly ashamed of my generation: the Debt Generation.

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