"How many of you people want to pay for your neighbor's mortgage, that has an extra bathroom, and they can't pay their bills??"
Santelli's Chicago Tea Party
CNBC's Rick Santelli and the traders on the floor of the CBOE express outrage over the notion they may have to pay their neighbor's mortgage, particularly if they bought far more house than they could actually afford, with Jason Roney, Sharmac Capital.
(YouTube Link)
Santelli has a good point.
There are of bankers who have been forced (by Barney Frank and Chris Dodd) to extend special loans to "Sub-Prime Borrowers" who stand to be subsidized by the Presidents "Stimulus Bill". Chances are, the banks will survive because of "The Bill".
At the same time, there are even more home-owners who CAN make their mortgage payments, but they are paying for a home which is worth less than their purchase price. Why? Because the Housing Market has gon into the toilet because the the market is flooded with homes which were previously owned by the "SubPrime" borrowers.
What is this second group going to to? They've lost money on their homes, even though they are among the responsible small minority which can pay their bills?
I'll tel you what they're going to do. they're going to default on their debts, and go buy a repo which was originally bought by one of the sub-prime borrowers.
What does this mean to the housing market? There will be a lot of repos from this second group wh will buy homes lost by the subprime group. The bill won't protect this group ... it will only protect the banks. (And it certainly won't protect the second group of folks who bought their homes responsibly.)
Who loses?
We do. Those of us who have to pay the tax increases to support the first group at the expense of the second group.
Instead of having "a few" low-value homes to manage, the Feds will find themselves owning homes defauled by the second group. Because the new law protecs both the first group, and those who take over their loans!
In a single action, Obama et al has managed to subsidize "loser loans" and penalize "responsible loans".
Thus has our new president managed to turn the entire housing market topsy-turvy, and in the process he has bankruptes "us". As in U.S.
I tell you now that even though G.W. Bush has recently been rated seventh from the bottom among all U.S. Presidents, our current president will end up making him look good.
I suspect that this is something which the Republican Party engineered just so they could offer a much more viable candidate in 212, it doesn't help us today.
In the meantime, our ass is grass and Obama is a lawn-mower.
You heard it here first, Folks!
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