Well, dear friend, Mother Government has come to the rescue again with the recent legislation for just about everyone to “save” the mortgage business and home ownership. At least so they assure us. No one loses we are told by the Kings of Capitol Hill. I submit to you that there are millions of losers and that the problem has been mis-stated and the solution shaped to benefit the political fortunes of those seeking votes. Was it done to help you? There are millions of people who own their homes outright and millions more who are current on their mortgages and will remain so until it is paid in full as per the terms of the original agreement between the owner and the mortage lender. Other than higher taxes what are all these millions of people getting out of this deal except to aid politicians in winning reelection.
Remember our heritgage. People came here and built their home with their own hands. We were individuals and that stalwart attitude toward life with all its joys and trials is what has made us a great nation. If we lose that “soul” of America then we will diminish as a people.
No one is forced to buy a home. No one is forced to go into the mortgage lending business. The negative consequences of greed should always be punished the same as punishment should apply for those who broke any laws. This legislation helps homebuilders, the mortgage lenders, those who buy and sell mortgages, mortgage brokers and the irresponsible homebuyer who bought more than they could afford and no doubt knew they were buying more than they could afford.
Mortgages are a safe long term investment. They are not spectacular like Google or Microsoft but you can make a good return on your money if you loan to repsonsible people and loan an amount appropriate to the value of the house. They pay off like a slot machine for years. Why else do you think there was such a market for them in the first place. We have plenty of money in the private sector to fund mortgage lending. We Americans have over 3 trillion dollars in ready cash in Money Markets and savings accounts right now. That doesn’t count the trillions additional held by pension funds, unions and private investment houses. businesses and assets. Our economy is still the world leader. Would you rather own assets in Indonesia or the US? Well, those folks around the world feel exactly the same way. There are millions more worldwide who love investing in US. Exactly what has a 25 year old done to deserve a $7500.00 tax CREDIT to buy a new house that I didn’t do 35 years ago? I would have liked a tax credit when I bought my house. I had to pay 15% down in cash, real money. It wasn’t easy and there were years when it was a struggle to make the payments. But I felt like I was in the same boat with everyone else and it seemed fair enough to me. What is going to be fair about doling out money to people who won’t work long enough and save enough to own their home? Those people with sub prime loans moved in with no money down. They had no investment in their home. Talk about believing in the free lunch concept.
I am afraid this is just another example of how we are becoming a nation of victims and one where no one will accept blame for their own actions. There are those who even take the position that they don’t want to pay for anything personally but they will let the Government pay for it! They somehow can’t seem to get the picture that the Government only takes from us. We blow so many things out of proportion to the delight of the media and the politicians because that sells newspapers and makes people think they need to rely on Government for everything. Losing to the Nazis or losing the Cold War would have been the end of the world as we know it. Having our American culture Balkanized would be the end of the world. Letting Fannie/Freddie fail would not be the end of the world. Do you want the Government to be in control of mortgage lending with all its rules and regulations and bureaucrats running that vital part of our economy? I much prefer private entreprise with all its diversity and competition and the choices it provides to us as consumers. Think about your dealings with any branch of the Government. How flexible have you found it to be? Did they people at the SSA or the IRS even use common sense when dealing with your problem? I don’t want people like that making those future loans to my grandchildren.
The politicians have grabbed the tail and sure won’t let go. It makes for too many wonderful sound bites during a campaign season. Let’s show them though that the dog still has a bark and a bite when necessary.