President Bush will unveil a scheme today to provide "homeowner assistance" to people paying mortgages (or not paying mortgages) that have floating rates. Why should taxpayers, or lenders, reward the mistakes of people who took out adjustable-rate mortgages? It's not as if the fledgling homeowners were defrauded. They're called adjustable-rate mortgages, after all. Why should taxpayers bail out lenders who gave good money to people with bad credit? They knew the risk and took it, after all.
The specifics of the plan will be detailed this afternoon at a White House press conference. If the government forces lenders to artificially keep rates low, then everyone else will suffer because of the resultant inflated rates on other loans. If the government forces taxpayers to make up the difference between the initial "teaser" rate and the current adjusted rate, then not only will taxpayers suffer because of the errors of others, but those errors will likely be repeated as the cost of making them will be nil. Those making the errors include the lendees, and especially, the lenders. They loaned money to people they had no business loaning money to. But when government makes a habit out of bailing out business, business makes it its business to practice bad business. Bush's plan rewards bad judgment.
This is the logical consequence of the president's "compassionate conservative" ideology. President Bush, no doubt, hopes to gain in popularity for his "compassion" towards those at risk of losing their homes (or, more accurately, getting evicted from the banks' homes). But "homeowner assistance" could just as accurately be called "banker assistance." Alas, it's impolitic to advertise a plan as corporate welfare. So, Bush styles it as a program to help the middle class.
The president could have learned from No Child Left Behind, the "amnesty" for illegal aliens scheme, or the prescription-drug giveaway that no liberal deed done by a Republican president goes unpunished by liberals. Democrats have already blasted the plan as too meager, and will soon paint Bush, if they haven't already, as the villain responsible for the troubles of so many unfortunate people mixed up in bad loans. These people deserve our sympathy, not our money.
Turning left is not just bad policy for Republicans. It's bad politics.
Although it could be easily argued that government was the cause of this sub-prime lending mess, it should not be up to government to come up with a bail out plan. It's just bad business all the way around. And this 'net' floated by a Republican Administration just shows how close philosophically the two parties really are.
I suppose it's a sign of the times in this victim hood society to completely sidestep rules and standards. But isn't this typical Boomer behavior? Nobody need be responsible; nobody need be at fault; just make sure everybody feels good about themselves and that they don't lose.
It’s sad and a continuation of setting dangerous precedents by expecting and then allowing government to gain more control over issues involving private entities.
It's a sign of the times that people think a debt is something you don't really need to pay back if you don't feel like it.
Guess those people are right...
Being irresponsible has been accepted by degree on a moving scale and seems not to be considered the derogatory trait it once was.
Where are all the adults?
This pisses me off as I'm one of the saps that bought recently with a fixed rate. Guess I went about it all wrong what with my saving money for a down payment, calculating my future earnings, and taking into account unforseen factors like losing my job or global warming. At least now I know what to do in the future.
See OJ, that'll learn ya' to do things the right way!
Way things are going, many in our government and many private members of our society are working hard for us to adopt the rules followed (or in most cases not followed) and low standards that apply to most third world countries.
