U.S. Loan Effort Is Seen as Adding to Housing Woes
By PETER S. GOODMAN
The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than excellent. Since President Obama announced the program in February, it has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief. Critics increasingly contend that the program, Making Home Affordable, has raised mistaken hopes among people who simply cannot afford their homes.
As a result, desperate homeowners have sent payments to banks in often-futile efforts to keep their homes, which some see as wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some borrowers have seen their credit tarnished while falsely assuming that loan modifications involved no negative reports to credit agencies.
Some experts contend the program has impeded economic recovery by delaying a wrenching yet cleansing process through which borrowers give up unaffordable homes and banks fully reckon with their disastrous bets on real estate, enabling money to flow more freely through the financial system.
“The choice we appear to be making is tiresome to modify our way out of this, which has the look of lengthening the crisis,” said Kevin Katari, managing member of Watershed Asset Management, a San Francisco-based hedge fund. “We have simply slowed the foreclosure pipeline, with people staying in houses they are ultimately not going to be able to afford anyhow.”
http://www.nytimes.com/2010/01/02/business/economy/02modify.html?hp
"Yes – too terrible Obama tried to help people!"
Just the type of predictable answer I was expecting from the left. A sarcastic "how dare he try to help people!"
The fact that they hurt people more than they helped them. The fact that it cost the taxpayer a bundle of money doesnt even register. Its the "feelings", the emotions that count.
There have to be consequences and repercussions for those who make stupid moves and impulsive decisions that can only be construed as horrendous judgment by someone with objective discretion.
When explaining why the government needs to let huge businesses fail, and people who make stupid decisions pay for their actions, I like to use a drunk driving metaphor. Say that you have a teenager, whose father is the police captain. This kid does drugs and drives drunk, but no matter what he does, his dad will bail him out of the distress every time because he doesn’t want to see his son go to jail. The kid doesn’t have any incentive to stop taking reckless probability which stand to harm himself and the convergence, so he will continue to behave in a reckless manner until he either kills or maims himself or someone else.
The Obama administrations efforts have largely been in vain, its sickening how ineffective they’ve been from the very beginning. Take that Cash for Clunkers program, and what a stupid waste of tax payer money that was. They tricked stupid people into trading their cars, which were ancient and doubtless didn’t get excellent gas mileage, but they worked and were paid off. Then they gave them 4,000 dollars, to buy new vehicles, that they couldn’t even afford to commence with! The fact that these people were driving a shitty vehicle to commence with, means that the last thing they should be thinking about is assuming another giant loan or debt on top of everything else going on economically at the moment. They then took those used vehicles that were working, threw acid on the battery and motor so they could never be used again, and then who knows how much it cost to transport and ruin these crippled used vehicles?
Cash for Clunkers was a abysmal failure, and nearly everything the Obama administration has done has also been a huge failure or largely unsuccessful in achieving its intended aims. All his talk about "Change" was BS, instead of people touting "Yes we can!" in unanimity with him come election time in 2012, the American citizenry needs to stand up to the failed Republicans and Democrats who have ruined this nation or stood by idly as others beside them have, and yell at them "No you can’t!"
Ron Paul has called out against failed US foreign and domestic policy since the 70s, and predicted decades ahead of time nearly every major catastrophe and economic turmoil that we would find ourselves in. The first decade of the 21st century was so marred with frivolous spending and logically unsound policies that didn’t stand to benefit the American people in anyhow whatsoever, that we have comprehensive the largest deficit in the world and still find ourselves in the midst of perpetual wars and costly ideological expenditures (like spending billions of dollars on the perpetual War on Drugs during times like this, when our current and past Commander-in-Chiefs were noted former cocaine and marijuana users nonetheless).
When you have a strong economy and your nation’s people aren’t fairing well, that’s sweet terrible and speaks mouthfuls about the said country’s political corruption in and of itself. But when you have the richest country in the world, with the most vibrant economy in the world, and this same country has also comprehensive the largest deficit in the world; you must really have one of the most corrupt political institutions in the world for all of those equipment to suggest itself simultaneously, there is absolutely no additional way of looking at it.
Yes it is sad really, our prez and congress gave the Gop bankers the money to help millions of Americans, and they have sat on the money, not lending it.
I guess, once bitten, twice shy? Wonder how many millions have been made for those banks by holding onto that money instead of using it for its intended purpose?
References :
Yes – too terrible Obama tried to help people!!! Can’t have that. Doubtless better to start another war.
How many $75 BILLION amounts did Li’l Bush spend on his wars???? And certainly NOBODY ever got hurt in those wars, hu?
References :
There have to be consequences and repercussions for those who make stupid moves and impulsive decisions that can only be construed as horrendous judgment by someone with objective discretion.
When explaining why the government needs to let huge businesses fail, and people who make stupid decisions pay for their actions, I like to use a drunk driving metaphor. Say that you have a teenager, whose father is the police captain. This kid does drugs and drives drunk, but no matter what he does, his dad will bail him out of the distress every time because he doesn’t want to see his son go to jail. The kid doesn’t have any incentive to stop taking reckless probability which stand to harm himself and the convergence, so he will continue to behave in a reckless manner until he either kills or maims himself or someone else.
The Obama administrations efforts have largely been in vain, its sickening how ineffective they’ve been from the very beginning. Take that Cash for Clunkers program, and what a stupid waste of tax payer money that was. They tricked stupid people into trading their cars, which were ancient and doubtless didn’t get excellent gas mileage, but they worked and were paid off. Then they gave them 4,000 dollars, to buy new vehicles, that they couldn’t even afford to commence with! The fact that these people were driving a shitty vehicle to commence with, means that the last thing they should be thinking about is assuming another giant loan or debt on top of everything else going on economically at the moment. They then took those used vehicles that were working, threw acid on the battery and motor so they could never be used again, and then who knows how much it cost to transport and ruin these crippled used vehicles?
Cash for Clunkers was a abysmal failure, and nearly everything the Obama administration has done has also been a huge failure or largely unsuccessful in achieving its intended aims. All his talk about "Change" was BS, instead of people touting "Yes we can!" in unanimity with him come election time in 2012, the American citizenry needs to stand up to the failed Republicans and Democrats who have ruined this nation or stood by idly as others beside them have, and yell at them "No you can’t!"
Ron Paul has called out against failed US foreign and domestic policy since the 70s, and predicted decades ahead of time nearly every major catastrophe and economic turmoil that we would find ourselves in. The first decade of the 21st century was so marred with frivolous spending and logically unsound policies that didn’t stand to benefit the American people in anyhow whatsoever, that we have comprehensive the largest deficit in the world and still find ourselves in the midst of perpetual wars and costly ideological expenditures (like spending billions of dollars on the perpetual War on Drugs during times like this, when our current and past Commander-in-Chiefs were noted former cocaine and marijuana users nonetheless).
When you have a strong economy and your nation’s people aren’t fairing well, that’s sweet terrible and speaks mouthfuls about the said country’s political corruption in and of itself. But when you have the richest country in the world, with the most vibrant economy in the world, and this same country has also comprehensive the largest deficit in the world; you must really have one of the most corrupt political institutions in the world for all of those equipment to suggest itself simultaneously, there is absolutely no additional way of looking at it.
References :
These jackass democrats and fanatical elephants need to go if the American people have any hope of salvaging what’s left of our nation.