I am not going to quote from the famous, well-known writers and commentators. I am going to bring you comments from a friend, a neighbor down the street. Here is what he wrote me, and I asked his permission to share it with you. Do you find this enlightening, striking, or maddening? Welcome to the “change” our President promised us.
He writes: “Thank You”…
Today the President unveiled his new mortgage bailout plan that they are referring to as, “the making homes affordable initiative.” This $75 billion dollar plan is set to help 9 million homeowners. There are some qualifications for this plan. You must owe more than the home is worth, it must be your primary residence, you must be paying your mortgage payment on time, your mortgage must be held by either Fannie Mae or Freddie Mac, and your mortgage can’t be over $725 thousand.
I have a few comments to make about this, the first being to all you renters, all you homeowners who have paid off your mortgage, and all of you who have already been foreclosed on or are in the process of it, and all of you who don’t qualify for this plan; THAAAAAAANK YOOOOOOOU!!!! because this plan is for me. I bought my house 3 years ago. It is on a ¾ acre lot on a private lake. I bought it because I knew it would be worth a million dollars in my lifetime. It was a good deal, or so I thought, and we always wanted to live on the water. Now it is worth less than I owe on it, and you are going to make up the difference. I have no intention of selling my house, I am not struggling to make the payments, and I know in time it will go back up in value, but that doesn’t seem to matter; you are still going to help me pay for it. So this summer when you are working harder and longer, you can think about me. I will be floating in the water and getting a sun tan at your expense.
But I am not the only one you will be “bailing” out. Let me tell you about my neighbor. They bought their house on the private lake around 8 years ago. They refinanced and pulled out a big chunk of their equity and used that money to rebuild their dock, and it is now really cool with a Bar-B-Que, spring board, and slide. They also bought a BMW convertible for her, a new Ford F-250 for him (they use the truck to pull their new ski boat), and as well, they took a nice European vacation. Now they owe more than their house is worth, and you get to make up the difference.
I know a surgeon who lives in a gated community on Lake Tapps, that is the big lake down the street from me. He pulled out his equity to pay for both of his kid’s college. One got an MBA, and the other went to Law school; each one is on track to make six figure incomes. Now you get to subsidize his lake front house, and his children’s college education. By the way his dock has a Malibu Skier tied to it.
I have another very close friend who looked at purchasing his first house a few years ago. He decided that it was not a good time to do so, and waited. He is glad that he did, because home prices are going down, and it is a buyers market. This bailout is going to work to keep housing prices artificially inflated, making it harder for him and other first time homebuyers to buy. But it won’t prevent them for bailing me and my neighbors out.
Please note: the youth who voted for President Obama, and loved him so much, are the ones who will be damaged the most by his policies. They will be the ones paying for all this stimulus spending, all this government growth, and all these bailouts. They are going to be adversely affected by this mortgage bailout, with artificially inflated housing prices, as well as difficulty getting financing. After all what bank will want to do a mortgage when the government can change the deal on a whim? The government demanding that banks do subprime lending, started under President Clinton, and is what caused the mortgage bubble to begin with. Now the government is going to make the problem worse.
Please do not interpret my words as arrogance or bragging, I am just trying to make a point. Those who know us, know that we have worked very hard to get what we have and to be where we are.
So I have a final question: Many years from now when, or if, I sell my house and it is worth a million dollars, will I have to pay back the subsidized money? I don’t see anything in the plan that says I do. Privatize the profit, and nationalize the risk…hmmm, sounds like quite a plan to me.