Lee’s Summit, August 10, 2010 – The Wall Street Journal published an article on August 6th calles “An Argentinaville Stimulus?” The August “rumor”, it claims, that a wire service put out a story that the Administration might lower Fannie Mae’s and Freddie Mac’s mortgage refinancing standards or trim mortgage balances for homeowners. The article further stated that “what’s striking is that the notion got his much elevation. Serious mortgage analysts on Wall Street have been discussing it in postings all this wee, with input not only from Morgan Stanley but also Credit Suisse, Goldman Sachs, Deutsche Bank, Barclays Capital, UBS and FTN Financial.”
Read the article, there are a number of very concerning speculations.
The point that drove me to the keyboard is similar to the article I wrote on August 6th regarding the $26 Billion bailout of schools systems ($10 Billion) and Medicaid ($16 Billion). The point I made there is that States like Missouri that live within their means, are tasked and taxed to cover for states like New York and California who, historically, do not live within their means.
Now this possibility, raised in the Wall Street Journal, that home owners who have did not pay their mortgages and are under water may have their loans forgiven is too much to accept. The message being sent by Washington is “live it up, taxpayer’s have your back.”
This rumor falls under the category of ludicrous. Not because it is unbelievable, but because the highest echelons of the administration and the financial institutions are actually discussing such a possibility. The completely wrong message is coming to those who suffer through their own fiscal responsibility.
Reuters’ article “An August Surprise from Obama?” reasons out the logic for such an effort. Simply put it says that since “Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.”
In researching this topic I found a reference in Bloomberg from December 28, 2009 that predicts the potential of this happening. They lay out very nicely how and why this could happen. Now here we are 8 months later and the theory expressed in December is now getting serious discussion among those who’s business it is to handle financing needs.
How do you feel about this?
Is this what the “hope and change” was all about?
Is this truly the United States of America?
This rumor is so unbelievable, that I’m afraid that it can actually happen. It requires no support from Congress. It is done by people not accountable to the voters. It is one way to clean up the old bad loans; on the backs of the taxpayers who are not represented by anyone making this decision.
Taxation without representation broke the camel’s back once upon a time. It may do so again.
Be aware of who gets your vote. Vote wisely. This country needs your vote on November 2nd.
The Lee’s Summit Conservative