Tuesday, March 10, 2009

Obama's Mortgage Plan Failing

I could give some kind of long winded (for me) spiel about why it is failing. But let me just cut to the chase.

...in order to avail of a loan modification, a distress homeowner should be financially capable of making payments which is hard to do if he had lost his job. And California is one of the states where unemployment rate is at its peak. The state’s 10.1 percent unemployment rate in January 2009 is way higher than the 7.6 percent rate nationwide.

Studies showed that unemployment is the main reason why prime borrowers fall behind their monthly payments, go into default and eventually become victims of the foreclosure crisis. And this bodes ill for Obama’s strategy to offer incentives to mortgage providers to modify loan terms to make them affordable to distressed Californian homeowners.
Obama's promises to keep adding new burdens to the economy (higher taxes, cap and trade, new health care initiatives) are not helping to get us out of recession. And when the tsunami of money he has been spending finally rolls back over the economy we are going to get inflation that will make the housing bubble look like a gentle wave.

Stagflation is coming. Big time.

1 comment:

rumcrook said...

its all good.

so what.

so the greatest nation ever, built on an experiment of individual liberty and freedom has finally reached a stage where people want something for nothing, want others to pull a wagon that they are sitting in.

demand it in fact. and will be surprised when they find its not possible for a few producers to pull a wagon that the majority sit in.

and when we lose this wonderful law and republic that ensures the freedom and individual liberty and rights to private property and the fruits of ones own labor, to so called democracy (just another word for tyranny of the majority.

they will be even more surprised.

but wait its not over yet, the soft tyranny of the elite oligarchy will tighten its grip under these auspices, and will gladly tell us all how to live right down to the smallest details,

becuase when you are paying the bills, ~~

you call the shots