If you think this kind of legislation is insane, you are right. It's freaking ridiculously insane beyond measure! What kind of idiocy show are Democrats running here?
Let me see, is there anything more that elected leaders can do to completely undermine the principles of contracts, laissez-faire capitalism and, dare I say, the American Way? No, I don't think it is any more possible.
Bush may not realize it, but he's abso-freaking-lutely brilliant for sticking to his guns and listening to those in the industry with a shred of common sense and some basic ECON 110 knowledge.
By passing such legislative measures, the Congress is prolonging a much needed correction in the housing market and inadvertantly rewarding those who do not fulfill their obligations under contract (mortgage contracts), not to mention poignantly punishing millions of taxpaying Americans (they are consitituents too!) who did not gamble, who did not spend beyond their means, who did not speculate, who used financial common sense and stuck to their sane household budgets. It does not interest me, as an American taxpayer, that certain individuals do not read the fine print of contracts, cannot perform basic math calculations, nor have an attorney review the mortgage contract to gain a better understanding prior to signature. In my view, a combination of greed, irrational exhuberance and financial ineptitude placed Americans in the position of foreclosure. The banks, realtors and mortgage lenders are not innocent, but homedebtors should not get a free pass for having, how should I put this, a complete lack of financial common sense.
No one is entitled to a market of rising home values. No one. These homedebtors should have signed a traditional 30 year fixed rate mortgage in the first place. Can't afford the monthly payments? Well, then rent until the housing market adjusts and cools, until the greedy, "if-it's-gonna-be, it's-gotta-be-me" idiots get shaken out of their $650,000 treehouses.
The U.S. Congress (led by Harry Reid and Nancy Pelosi) has lost the plot . George Bush is actually doing something right here for a change.
God help us all and Barack Obama when he gets sworn in. May he somehow obtain a similar inkling of common sense and sufficient forebearance too with respect the national American housing crash and massive correction that is now underway. It cannot be stopped. One way or another, the market will find it's equilibrium. This correction simply must be allowed to run it's course, no matter how painful and devastating that might be to some. All will be affected. Even renters who pay income taxes. Families, children, school districts, men, women, rich and poor, black, white, it does not matter. All will be impacted.
The real estate markets are desperate for finding that bottom and to know that it is solid.
Source: The Rancid Truth Blog
