You can’t teach an old dog new tricks and it seems you can’t teach a young American President anything new about economics either. In spite of all the carnage created from government intervention in the U.S. housing market over the past decades and more recently during this current Democratic Administration, the government refuses to back off and let the market cure and heal itself.
Campaigning More Important Than Governing
Once again it seems for political purposes and to have empty political promises to try and appease the American voter, Mr. Obama has introduced another ‘help mechanism’ for certain homeowners. To quote a newspaper article reporting on the Obama stunt, “The federal government’s revamped mortgage-refinancing program could allow more than a million borrowers to take advantage of falling interest rates, even if the value of their homes has plummeted. While the plan, announced as expected on Monday, could provide a modest boost to spending and some relief to homeowners, economists said more action may be needed to stabilize the ailing housing market.
The overhaul of the Home Affordable Refinance Program, or HARP, will let borrowers whose mortgages are backed by Fannie Mae and Freddie Mac refinance, regardless of how far their homes’ values have fallen, eliminating a previous limit.”
Government Spending Comes From Your Pocket
If this misguided effort continues, and the government intervention doesn’t subside, the housing market’s chances of recovering any time soon will be impossible. What it seems Mr. Obama and his aides fail to understand is every time they get involved they are spending money right out of the pocket of every American citizen. A new mortgage help program, a new student loan program, help for the poor, help for someone else, spending on anything else; it’s doesn’t matter, it all has to come on the backs of normal people.
Spending Other People’s Money
Obama and his people don’t understand that they are spending other people’s money. Unfortunately, no one in government seems to understand that the money they spend doesn’t belong to them, and should be guarded and spent with more responsibility and humility than any of them possess. The people send money to government, the government doesn’t grant money back to the people.
Let The Housing Market Cure Itself
If the housing market is to recover the normal influences of buying and selling, of supply and demand must be unleashed and allowed to work. Sure, there will continue to be housing losses for individuals, but after the damage that’s been done by government intervention there is no way to avoid the consequences. New plans to help struggling homeowners like this latest effort by Obama just delays the pain for the sake of having a campaign issue to preach to the voting public.
I’m tired of these government bureaucrats irresponsibly spending our money without consequences. It would also be nice to get some leaders in government who care what happens to the American housing market enough to get out of the way and take their greasy, greedy hands out of our wallets.
First of all, we have this now, it’s called the good faith estimate. It sounds like they want to add more documents to it, that probably won’t be read by the consumer because they will be given in the already large folder-o-docs that you get with any mortgage. You can make it as simple to read as possible, but when accompanied by dozens of other documents it just become another “skim over” item.Doesn’t better, more trustworthy, business win… Instead of waiting for the government to give the people the “thumbs up” and say it is now safe to borrow and trust mortgage brokers again, the consumer should be educated and shown that there are transparent mortgage services out there. Consumer demand outweighs government intervention any day!
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