11 Responses to “Welfare for homeowners”

1. Hogarth Says:
   February 21st, 2009 at 1:48 pm

   “the program encourages mortgage servicers to keep the payments low only for five years, after which rates will rise.”

   Let’s think about that five year plan. Five years from now, one of two things will happen. In one scenario, Obama is in his second term and unelectable for a third term. The plan can be allowed to expire at no cost to Obama, but I predict instead that it will be extended to help the next dem in line to get elected.

   The second possibility is that a Republican will get elected and face the decision of extending the assistance to avoid the ‘cold, heartless’ accusation but at the cost of turning his/her bas against him/her, or vice-versa.

2. Oblio Says:
   February 21st, 2009 at 2:47 pm

   VDH is channeling the feelings of the people who pay the taxes and follow the rules, but get the shaft:

   http://pajamasmedia.com/victordavishanson/our-battered-american/

   There is a lot that populists don’t understand about High Finance, but they will understand this. Add to it inevitable foreign policy setbacks and attempts at social engineering, and you have a recipe for mass defection from the “middle” voters.

3. Stark Says:
   February 21st, 2009 at 2:51 pm

   Promoting adult dependency in any form is poison for getting people out of the loser/victim cycle.

   You would not wish it on your children or your neighbors unless you were a control freak.

   Freedom to fail is necessary to develop self esteem and motivate ourselves.

   If we protect everyone from losing in the short run, we become unable to compete in the long run.

4. Perfected democrat Says:
   February 21st, 2009 at 3:28 pm

   Rates going back up in five years guarantee a replay of the existing problem, and further long-term expansion of the dems programs or sabotages the next Republican White House.

5. dane Says:
   February 21st, 2009 at 6:11 pm

   People are already hopping mad about it. Besides a goodly percentage of those who got their rates renegotiated before and after the first 350 billion under are back into default status on their loans. It’s not going to help many at all.

6. I R A Darth Aggie Says:
   February 21st, 2009 at 6:24 pm

   As a renter, I’ve already chewed thru a couple of boxes of 20 penny nails.

7. Occam's Beard Says:
   February 21st, 2009 at 8:14 pm

   Promoting adult dependency in any form is poison for getting people out of the loser/victim cycle.

   I understand your point, and subscribe to it, but consider “adult dependency” an oxymoron.

   One is either “adult,” or “dependent,” with no overlap between the two categories. Those who are dependent on others (whether by virtue of age, mental infirmity, which includes pathologically poor judgment) should not be allowed to vote.

8. Oblio Says:
   February 21st, 2009 at 9:04 pm

   Here is a terrific map from the Fed showing the frequency of delinquent mortgages by county as of the second quarter of last year.

   http://data.newyorkfed.org/creditconditionsmap/

9. Baklava Says:
   February 22nd, 2009 at 12:47 am

   Foreclosures are good.

   I just bought one.

   And there were 4 other bidders.

   Prices are low and people can afford homes again…. Oh wait!!! That’s what democrats were trying to make happen for years with teaser rate interest only loans..

   Too bad liberals don’t understand economics!

10. turfmann Says:
    February 22nd, 2009 at 8:56 am

    I find it interesting that when confronted with an economic crisis, the government flails about trying to ‘solve’ it for us, as if we did not have the mechanisms in place to do so already.

    If a corporation is insolvent, it should not ask for a bailout from government, it should declare bankruptcy – either reorganize itself into a sustainable enterprise or liquidate.

    If a homeowner is not current with his mortgage payments, the lending institution needs to foreclose upon the real estate – free the homeowner from a fiscal burden that they cannot meet and allow the titleholder of the land to liquidate its legitimate financial stake in the transaction.

    Negative consequences of the failure to abide by the terms of a contract are painful and humiliating to endure.

    Government intervention in either circumstance only delays the inevitable correction that needs to occur, and squanders vast amounts of the national wealth in doing so.

    The “Invisible Hand” will exercise its influence upon the market, weather shackled in government handcuffs or not.

    Best to get it over with as quickly as possible.

11. turfmann Says:
    February 22nd, 2009 at 8:59 am

    weather = whether

    *blushes*

    Freudian slip as another winter storm approaches…

    Another cup of coffee is apparently necessary.

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