Background to the situation:
The foreclosure crisis is bringing down the economy and threatening to put many Americans in a position without homes. Congress pressured the Obama administration to do something. Hence, the initiatives to help homeowners:
- Refinancing several million homeowners into government-sponsored mortgages that are cheaper.
- Temporarily alleviate payments of those who are unemployed and seeking jobs.
- Encourage lenders to write down the value of loans for borrowers in modification programs.
The Problem:
1. The people who have been able to keep up with their payments may protest as the aid is almost solely directed at those experiencing financial hardship.
2. If the plan is successful, it could potentially put taxpayers at higher risk.
a. “If many additional borrowers move into F.H.A. loans, a renewed downturn in the housing market could send that government agency into the red.” –David Streitfeld (NY TIMES)
2 comments:
Seems like the aid is going to come out of our tax dollars. this is another good example of the middle class being squeezed once again.
ellery's comment is almost exactly what i was thinking.
now, I will elaborate on my opinion (i apologize in advance if this comes across as too harsh or cynical):
okay, yes, all these proposals to help the struggling people of america seem like great ideas (and probably would be if the government could print money with out some seriously bad consequences), but really people, in reality, where are the funds going to come from? in all truth, i'm not one who pays much attention to the goings-on in the political world, but it seems that every time i read an article or hear a news story, it's either about people protesting tax raises or begging for government hand-outs. Now, I can't be the only one who notices the discrepancies...
I'm all for helping people who have been unlucky and are suffering economic misfortune, however, I do NOT endorse helping people who were just stupid with their money. People who had horrible credit scores, debt, or just not enough money and chose to buy houses with mortgages they couldn't afford were obviously not thinking. I'm sorry, but when I start paying taxes, I wont want to pay all that money to help alleviate the financial burden of those who didnt use their brains...
it would be like taking away points from an A student (thus lowering their grade) in order to give a B grade to a D student; just not cool.
Post a Comment