Bold Colors Blog

Stickin’ it to the libs, one day at a time

Posts Tagged ‘Mortgage’

Homeowners Hit the Lottery

Posted by Liberty on February 22, 2009

From The Motley Fool:

Homeowners Hit the Lottery

“Of all the government measures to right the economy, President Obama’s plan to aid homeowners seems like the most irresponsible to date.

Why? Not because it helps individuals rather than big banks. Given the choice, I’d much rather help average Joe nine-to-fivers than, say, Citigroup or Bank of America. Anyone would. No one doubts that losing your home is a personal tragedy. I have a heart, thank you very much.

Nonetheless, the proposal to spend $75 billion refinancing mortgages that wouldn’t otherwise be given the time of day is quite literally the epitome of subsidizing failure, without asking for anything in return.”

The author [Morgan Housel] points out the fact that the bank bailout money came with the stipulation that it eventually be paid back.  This mortgage plan does not carry the same requirement.  Housel also mentions that Obama claims the money will not go to speculators or house flippers.  The interesting point is, what really constitutes a speculator?

“What do you call people who bought houses that exploded in value in the previous few years with a ‘subprime and exotic loans with exploding terms?’  I’d call them speculators. What do you call people who bought homes without setting aside enough savings to cover an economic downturn? I’d call them speculators. What do you call people who bought homes that didn’t fit their income profile? By golly, I’d call them speculators.

No matter. We’ve been aiding Wall Street speculators for months now. But — and this is an important but — every dime of taxpayer money injected into failing banks, be it Goldman Sachs or Wells Fargo or AIG, is money demanded to be repaid to the best of their ability, and it came with equity warrants that offer taxpayers upside potential if and when markets recover.

This homeowner aid package has no such clause. Home prices fell after a period of undeniable gluttony (like they do in all markets) and now taxpayers are bailing out speculators (yes, I’m calling them that). Yet if home prices rise in the future (and they will), the bailed-out homeowner keeps the upside. Heads, they win, tails, you lose.”

Posted in Arrogant politicians, Liberalism, Obama, Redistribution of wealth, Social engineering, Socialist economics, Stupid legislation | Tagged: , , , , , , , | Leave a Comment »

Seize the perspective

Posted by Liberty on February 17, 2009

From Carpe Diem today:

Early 1980s vs. Now

Here’s a bit of an antidote for my last post about the plummeting stock markets.  It’s important to remember that, while our economy is bad, it certainly has been worse.  Some of us haven’t been around long enough to remember the last severe recession firsthand, so these statistics bear repeating.  In the early 80’s, America was still recovering from the failed presidency of Jimmy Carter.  How about 18.5% interest on your 30 year fixed mortgage?  It really was that bad in 1981.  14.8% inflation in 1980?  And 10.8% unemployment in 1982?  I’m not saying that we’re not headed there under Obama’s socialist policies but for the time being at least, it could be worse.

Posted in Liberalism, Obama, Socialist economics | Tagged: , , , , , , , | Leave a Comment »

Stop the presses! The New York Times got it wrong

Posted by Liberty on December 23, 2008

From Newsbusters:

New York Times Blames Housing and Financial Crisis on Bush

The New York Times published a story the other day blaming the mortgage market crisis solely on President George W. Bush.  I clicked on the headline, skimmed the first page of the article [it was six pages long], determined it was as biased and inaccurate as the New York Times generally is and moved on.  I’ve decided to revisit that article because, for once, The President is defending himself from attack.  Here’s the NYT hit piece:

White House Philosophy Stoked Mortgage Bonfire

“Today, millions of Americans are facing foreclosure, homeownership rates are virtually no higher than when Mr. Bush took office, Fannie and Freddie are in a government conservatorship, and the bailout cost to taxpayers could run in the trillions.”

And here’s a Fox News story about the response from the White House:

 White House Fires Back at Times Over Housing Meltdown Story

“The White House is pushing back hard against a New York Times article that essentially blamed President Bush for the sub-prime mortgage mess and the Wall Street collapse by linking those crises to a policy goal he stated more than six years ago. 

That goal? 

‘We want more people owning their own home,’ as Bush said in December 2003.”

The Times goes on to claim that Bush encouraged sub-prime lending to lower income and minority families as a way to win more voters.  The Times is conveniently ignoring the complicity of Democrats, including Jimmy Carter, Bill Clinton, Chris Dodd and Barney Frank.

“…the Times made no mention over the weekend of President Clinton’s aggressive deregulation of the financial services industry, which empowered banks, brokerage firms and insurance companies to engage in some of the very practices — such as credit default swaps — that contributed most to the current fiscal crisis. 

While the Times mentioned that mortgage bankers and brokers donated almost $850,000 to President Bush’s 2004 re-election campaign, the newspaper omitted the fact that the top three recipients of campaign contributions from Fannie Mae and its sister organization Freddie Mac over the last two decades were all Democrats. 

Connecticut Sen. Chris Dodd, head of the Senate Committee on Banking, Housing and Urban Affairs; President-elect Barack Obama; and Bush’s 2004 opponent John Kerry all benefited from Fannie and Freddie.”

And, as Noel Sheppard points out in the Newsbusters article:

“housing policies encouraging lax lending standards have existed in this nation since Jimmy Carter signed the Community Reinvestment Act in 1977. This required financial institutions to make loans to lower-income individuals in the communities they served. Non-compliance with this Act would prevent a bank or savings and loan from being able to expand within the states it was currently in and beyond.”

Posted in Liberalism, Main Stream Media, Redistribution of wealth, Socialist economics | Tagged: , , , , | 1 Comment »