Housing Crisis Insured for the Forseeable Future

If you live in a house you can afford and make your monthly mortgage payments on time, this article should make your blood boil. The idiocy and short-sightedness of our current administration is absolutely mind-boggling.

Administration Details Its Plan to Modify Home Loans

The idea here is to bail out people who bought more house than they could afford. How are they going to do this--by federally subsidizing loan modifications--with taxpayer dollars! If you're currently living in a house in which your mortgage payment consumes more than 31% of your gross monthly income, the bank is going to give you a new deal, subsidized by the government, to reduce your monthly mortgage payment.

Here's the quote from Treasury Secretary Geithner:

“Two weeks ago, the president laid out a clear path forward to helping up to nine million families restructure or refinance their mortgages to a payment that is affordable,” the Treasury secretary, Timothy F. Geithner, said. “It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets, just as we work to stabilize our financial system, create jobs and help businesses thrive.”

WHAT!!! Housing has always been affordable...if you buy what you can afford! Surely what he meant to say was, "to help make the housing you've always wanted to own more affordable." Have we already forgotten what got us into this mess in the first place? Don't take my word for it--the NY Times saw this coming 10 years ago.

Fannie Mae Eases Credit To Aid Mortgage Lending

Our "consumerism" society has convinced people that if you want something, just buy it and the details will work themselves out. Our government is now telling those people they deserve to own their home and if they can't afford to pay for it, the government will step in a bail them out. Let me tell you a little secret--the government doesn't have any money to bail these people out. Every dime the government gets comes out of the pockets of Americans who pay taxes. I'm sick and tired of the wealth redistribution this administration is hell-bent on forcing upon us.

Here's a prediction you don't need a crystal ball for--these same people are going to default on their mortgages whether or not those loans are modified. The problem is not that the housing market has crashed...it's that these people couldn't afford their homes in the first place. Now, instead of these people simply losing their homes now to the foreclosure process, the government is going to throw $75 billion of our tax money at the problem only to watch the foreclosures happen anyway.

It's times like these that I'm thankful my parents taught me good, logical money management principles. I only wish Obama's and Geithner's parents had done the same for them.