Barack Obama announces today a $50 – $75 BILLION dollar “bailout” for homeowners. These homeowners are divided into two groups under this plan:
Group 1 – Those who have purchased homes WAY out of their price range, using the corrupt government/private collective venture called “Fannie Mae” and “Freddy Mac”. These are those who not only are not now making their mortgage payments, but have never been able to make them fully on a month to month basis – EVEN BEFORE THE MARKET CRASH OF LAST FALL.
There are an estimated 3 million in group 1
Group 2 – Those who have bought their homes responsibly, pay their mortgages monthly, and now find themselves paying more for their house than it is worth. These people are in a negative equity situation – an upside down, or underwater, loan situation. Make no mistake – group 2 is where they are today because of the government mandates allowing those in group 1 to purchase more home than they ever could HOPE to afford!
There are an estimated 10 million in group 2
Now – which of these groups do you think Obama’s new plan will help? Will it be the 10 million who have fallen victim to government intervention? Or will it be the 3 million who are in over their head?
Well, of course it’s the 3 million. The government is going to invest money to reduce the mortgage payments of these people. Because “foreclosure costs the government and the community more than aiding them will”. So, instead of getting these people out of the housing they cannot afford and getting them into something they can – they are going to buy their houses for them.
The 10 million of us who find ourselves paying on a house that isn’t worth squat now? Well, we “may be able to find lower interest rates by refinancing our homes” and there are “potentially those banks who will be working with their customers who find themselves in this situation”.
Basically, Big Government is betting that the 10 million who have done the right thing will continue to do so. That those 10 million will continue to stay in their homes and make their payments, praying their houses will regain some of their original value. They are betting that none of us will mail in our keys and walk away – something they know the 3 million will do.
Welcome to the age of right being wrong and wrong being right.
I’m just saying…