Government As Sub Prime Lender
Posted by Raven on April 22nd, 2008
The media loves to stroke the ego of Democrats, by writing articles like this:
WASHINGTON (AP) - Homeowners staggering under mounting mortgage debt and facing foreclosure could get cheaper, government-backed loans under Democrats’ housing rescue plan.
There’s just one problem with this…those pesky Republicans who can and probably will stand up to block such efforts.
But first, lenders would have to agree to wipe out part of their debt. And the borrowers would have to show they could afford the new mortgage. They also would have to agree to share any future profits on the home with the government.
The plan would be a massive expansion of the Federal Housing Administration, the Depression-era mortgage insurer. FHA would take on $300 billion in new loans for as many as 1 million distressed homeowners, most of whom otherwise wouldn’t qualify for a government-backed loan.
So one million people who don’t qualify for loans will be given the same shady deals these sub prime lenders gave? Our government, Democrats’ plan- is now a sub prime lender. Oh sweet. All on my dime or penny….
…and people will be stupid enough to swap their profits for a feel-good loan that saves their debt-laden asses right now. We can only hope this stays in the realm of a plan and that it never becomes LAW.
April 22nd, 2008 at 11:41 am
Its an election year… never underestimate the politicians of our country to spread others money around like a drunk sailor at a strip club… Like that old saying goes, Those who rob Peter to pay Paul… always have the support of Paul…
April 22nd, 2008 at 3:20 pm
Well this is at the stage of being just a plan. Let’s hope it stays that way.
I know there are real situations where we should want to help some people. And yes, the government should step up in these cases as average people wouldn’t be able to afford to help…but gee whiz this is of a grand scale and way too much cash is going to be needed….like we’re being forced to invest in things we would never buy into on our own. First, the risks are just TOO high. Second, the cost is astronomical. And, lastly, to expect people to hand over their only hope of any real profit in their own lives is so communist in nature….then again we are talking about Democrats…LOL
April 22nd, 2008 at 11:39 pm
The federal government has no constitutional basis to step in.. IMHO. They’re building a house of cards on a vibrating bed, and I’m just waiting for someone to drop a quarter in the slot….