AP article, May 6, 2009 - "Trying to curb home foreclosures, the Senate voted on Wednesday to make it easier for homeowners with risky credit to switch to a lower-cost mortgage backed by the government. The bill, passed 91-5, also would give banks a break by encouraging reduced fees they must pay for the government to insure deposits."
Everyone knows that easy credit (coupled with no real regulatory watchdogs manning the oversight since they were getting bankrolled not to) is what helped get us into the mess we are in now. Too many citizens with shoddy credit getting risky loans with little money down and no real income to support the loan to begin with. Having had hearing after hearing lambasting all the Angelo Mozillo's, Lehman Bros and Ken Lewis' of the world and telling them it was the fact that they provided too many loans to risky borrowers, what is congress proposing to do as of today? You guessed it. Make loans to risky borrowers easier to get. This is your government in overdrive trying everything they can to spur lending activity so that it will demonstrate, no matter how erroneously, that or economy is getting stronger by showing that banks are lending again. Guess who is backing these loans? Could you believe its the government (which means the taxpayers)? We already back all the defunct loans now through Freddie Mac and Fannie Mae so why not add more coal to the fire?
It absolutely amazes me that our government can get away with this without any uprising from the people. Of course, its hard to get the people to rise up when they are uneducated due to the fact that the media will spin this news in a way that makes you think its actually a positive, not only in the short term but also in the long run.
So the taxpayer is the backer of the toxic asset program, the FDIC insurance on all bank accounts less than $250(k) although I have Citibank guaranteeing up to $1 million until the end of the year, AIG, Citibank, FNM/FRE, Amtrak and soon to be Muni bonds if Barney Frank has his way. Yet, so many of us shrug our shoulders and just say, 'whatever'. Of course, they shrug now because Obama can't do anything wrong according to his worshipers but if this was Bush guaranteeing the potential fall out after having loaded up the taxpayer with deficits from here to the moon you can bet your last penny that the media storm would be a category 5 right now.
Give it time...when the far left liberal agenda fails miserably many of you will wonder why you ever voted for the smooth talking, good looking, black man who holds hands with his wife and plays with their children and dog...Didn't Bush hold hands with his wife, have a loving dog, and have 2 girls that had a good relationship with their father? But somehow it means so much more when its the current White House family. Interesting?
Enjoy the default and foreclosure's that will surely come despite this government guaranty!
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