Wednesday, February 18, 2009

Obama subsidises home owners

CNN reports that the Obama Administration is going to spend US$75 billion to rescue property speculators whose mortgages are worth more than the value of their homes. Those who didn't enter the property market, or entered it more wisely, are subsidising those who were foolish, who thought the market would ever increase. Those who didn't take out mortgage repayment insurance will be subsidised by those who did.

The Obama administration is rewarding irresponsibility and poor decisionmaking by fleecing the children of those taxpayers. Moreso, he is inflating the property market, making it yet harder for new entrants to it. An administration that ostensibly cares about the cost of housing is pushing prices up for new home owners.

Change who can believe in?

President Obama said that those who would qualify are people the bank are not interested in - which of course, makes it ok to take from the general public to help them out. He said "no sale will return your investment". Well of course not, bad investments SHOULDN'T return you anything. Governments using their fiat money have supported the inflation of the property market as a ghost prosperity allowing people to borrow against their homes, and to encourage speculation for those wanting to make gains. It caused the problem and is unwilling to let the housing market deflate to its rightful level. It is willing to offer even more credit, so presumably people can engage in subsidised bargain hunting.

So Obamaphiles, hope your children are grateful they are paying more in taxes to pay the debt of property speculators. No humour in that is there?

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