The Obama administration is set to make additional changes to the free market system on Friday according to sources who wish to remain anonymous since the official announcement has not been made as yet according to an AP story by Alan Zibel . Obama wants banks to reduce the amount of debt owed by individuals about to have their houses foreclosed due to unemployment and harsh economic times.
“The plan also will require the more than 100 mortgage companies participating in the administration's program to consider slashing the amount borrowers owe.”
An article by John Gittelsohn at Bloomberg.com raised questions regarding the wisdom of manipulations of the mortgage industry since over half of previously reworked mortgages which had been in default eventually ended up in default a second time.
“President Barack Obama’s administration is pressuring lenders to alter loans to reduce the number of properties lost to foreclosure.”
What does “pressuring lenders to alter loans” mean in plain English? It means that civil contracts no longer matter. If I borrowed $200,000 for a house; now the government can erase that figure and write in a more equitable amount, one which I might eventually be able to pay, regardless of how much the lender might complain. Does anyone, other than me, see a problem here?
Eventually it will mean the end of the banking industry’s ability to enter into contracts for fear of having the government renegotiate the terms and conditions in order to make it easier for unqualified borrowers to take advantage of the lender based on their inability to repay what they originally promised.
Excuse me; but isn’t this exactly the same problem which caused the mortgage and banking industry to collapse sending the country’s economy into a tail spin? Banks were forced to extend loans to unqualified borrowers in order to have everyone obtain the “American dream of home ownership”.
What happens if my group of “community organizers” determines the American dream includes a new Mercedes Benz in the driveway next to that required house? Why not include access to an executive class Lear Jet, designer clothing, and golf club membership paid for by my fellow citizens? Hell if you’re going to dream, dream BIG; somebody else is footing the tab anyway.
Where does the fantasy end and reality take over? The answer, when those paying for entitlements are swept into bankruptcy through taxation, fees and regulations; that’s how to destroy America. (Subliminal message, Cloward Piven )
ACORN community organizers pressured lending institutions into making bad loans, loans to folks who couldn’t finance a game of jacks were buying houses because banks were being threatened with legal action and intimidation and through government intervention. The result was millions of defaulted mortgages, worthless paper being sold until the house of cards fell down.
Obama wants another “do over”, another opportunity to destroy the free market system. It has to work or millions of home owners will be thrown out into the streets; isn’t that the mantra out of the Obama administration? TARP wasn’t enough of a failure, now billions more taxpayer dollars will be used to destroy yet another foundation of society, civil contracts. (Subliminal message, Cloward Piven )
It will get to the point where the only commerce going on will be direct bartering; there won’t be any borrowing and lending, who’d be dumb enough to expect payment? I’m afraid Paul Simon had it right when he sang an American Tune . Somebody’s got to pay for all these entitlements…
“…Still, tomorrow’s gonna’ be another working day
And I’m trying to get some rest,
That’s all, I’m trying to get some rest.”
This article has been cross posted to The Moral Liberal , a publication whose banner reads, “Defending The Judeo-Christian Ethic, Limited Government, & The American Constitution”.