No Bailout Here, Nothing to See, Move Along Now

There's something about someone repeatedly having to deny something over and over again that makes me so absolutely certain that they are lying.

Examples:

"I did not have 'sex' with that woman" - Bill Clinton

"I just want to find the real killer" - O.J. Simpson

"I'm not gay!" - Tom Cruise

"I don't see a moral hazard" - Treasury Secretary Hank Paulson

"I see no problem" - Ben Bernanke, Fed Chairman

A Bailout, By Any Other Name...

Don't kid yourself, Shumer wants a bailout. He wants Fannie Mae and Freddie Mac to guarantee riskier and riskier mortgages. Just because it's guaranteed by Fannie or Freddie doesn't make it a safe mortgage if you change the qualifying criteria. Does he think we're stupid? Answer: yes, he probably does, that's why he came up with this proposal.

The reason foreclosures are skyrocketing is that buyers face payments which eat up a higher and higher percentage of their income. Geez, what does income have to do with home prices? Oh yeah, everything.

So you're still going to get the same default rate even if you raise the loan limits or loosen the qualifying criteria of Fannie and Freddie.

But if a homebuyer defaults on a Fannie or Freddie mortgage it's YOU, the taxpayer, who is stuck with the bill. But wait a minute, Fannie and Freddie aren't actually formally supported by the US Govt. No, but a Democratic congress and Federal govt is guaranteed to bail them out. So ultimately, you're holding the bag, you're Shumer's own personal money tree.

Sound good? Sound like something you want to support? Sounds like a real winner, huh?

Today, HousingPANIC Covers the Mortgage Bailout Better Than I Ever Could

This is not an issue that can have too much coverage. This is not an issue that can have too many blog posts, too many blog comments, too many parrotting, copy-and-paste MSM articles. The word has to get out, people need to learn.

Everyone who saved their money, did not borrow irresponsibly, your government wants to spend your money to bailout those who gambled on real estate.

The reason you can't afford a better house is that a better home costs too much, right? Do you know why that is?

Answer: People borrowed beyond their means, betting that they could either sell to a greater fool or refinance their way into affording the house. These people are called 'speculators'. Speculators bid against each other and inflated the price of real estate until real buyers, people who just want to buy a home to live in and raise their families, can't afford it.

Read HousingPANIC. Say 'no' to a mortgage bailout.

Congress Wets Finger and Holds Up To The Wind

Proving that our so-called leaders are nothing more than political wind-sniffers, Congress begins to 'do something, anything'. Late to recognize that there is a problem, failing to understand the nature and cause of the problem, Congress mulls over poorly concieved 'solutions' to the housing meltdown problem.

Increased regulation of lenders, mortgage brokers and the whole Real Estate Industrial Complex is several years too late. But hey, it makes Congress look like they're doing something.

Increasing the caps on Fannie Mae and Freddie Mac portfolios is just rewarding the incompetent. These companies haven't complied with SEC requirements to file accurate financial statements in years and now we want them to expand? They will inevitably fail and though technically they are not underwritten by the federal government there will be overwhelming pressure for the government to bail them out. Increasing the caps on fannie and freddie is just a sneaky way of increasing the federal debt.

Congress needs to spend the time and educate themselves about this problem and then take the leadership role and explain this to the other sheeple who still don't get it.

Hillary Wants Middle and Lower Income Families to Suckle at the Government's Teat

A grossly misguided Hillary Clinton wants to spend $1B of your, my, everyone's tax money so that independent, honest, hard-working families cannot afford to own a home. Clinton wants middle and lower income people to have to suckle at the government's teat in order to own a home.

Preventing foreclosures will prevent home prices from falling to where they should, to affordable levels. Nationalized housing - great idea! Get the government more involved because they do everything so well, don't they?

It takes balls, but if you leave the market alone it will take care of itself. The government should only intervene to prevent fraud and deception - and that's exactly what it failed to do in the real estate industry for the last 5 years.

Thank God Someone in the MSM Has a Clue

I'm starting to calm down a bit. By the looks of things, Bush's latest mortgage bailout attempt will be limited at best as most of these subprime borrowers will not qualify.

It's just a little song and dance to keep the people distracted while the housing market, as it should, falls off a cliff. In fact, the dance they're doing is 'the running man', an old favourite of mine. Looks like you're running, see? But you're really going nowhere at all.

Quoting Diana Olick, who is paraphrasing Guy Cecala at Inside Mortgage Finance:

"FHA underwriting standards even if loosened somewhat, would still present a problem due to the credit of the subprime borrower. FHA deals with only the very top tier of subprime borrowers."

But we still must remain ever vigilant that this 'FHA Secure' program is not the Trojan Horse that, once in place, can have its standards dropped to the floor to bailout the morons and sheisters of the world.

Look, Mom, I just assumed the risk for subprime mortgages!

My government has now assigned the risk for subprime mortgages to you and me, the taxpayer.

Risky borrowers can now have their mortgages underwritten by Joe and Jane Taxpayer. Risky borrowers will behave as risky borrowers do: some will actually pay off their debts but some will not. And now I'm paying for those who will not.

The President spoke out of both sides of his mouth when saying "It's not the government's job to bail out speculators, or those who made the decision to buy a home they knew they could never afford.''

Anyone who needs to refinance with the FHA, by definition, made the decision to buy a home they knew they could not afford. End of.