Axis of Right

Three Native Rhode Islanders Commenting From the Right on Politics and Anything Else

Bush’s Housing Bailout

Posted by Ryan on September 1, 2007

President Bush has been cheering the housing boom for most of his presidency.  More Americans own a home today than anytime in our history.  Yet, with a combination of “affordable housing” loans being given to low income families that never should have been eligible, housing “flippers” buying homes only to sell them quickly for a profit, and simply dumb decisions by people who didn’t understand what they were signing, this pride of the Bush economy is set to get rocked very shortly.  Add to that the number of foreigners invested in the bank loans and this could also temporarily shake the world markets.

In comes President Bush.  He is proposing a bailout of those people, anywhere from 60,000 to 80,000, whose original interest rate is about to nearly double their monthly mortgage payments, forcing many to foreclose.  The Democrat Congress will add so many other items to this proposal that I’m frightened of the prospect– of course Bush will sign anything Congress gives him in this case, too.  Bush says his proposal is modest, just making more people eligible for FHA-loans with a few more perks.  He’s even asking Fannie Mae and other lenders to go easy on these people.

But, in comes ol’ Nanny State.  She is going to change the rules so that these people don’t sink, just like the 1989 Congressional savings and loan bailout rewarded bad behavior back then.  Bush doesn’t call his plan a bailout, but it didn’t call amnesty amnesty either.  Bush is also on the same page as Chuck Schumer on this one.  I’m not trying to be mean-spirited here, but I am trying to advocate personal responsibility.  If I was financially irresponsible and borrowed more than I could afford, I would now be being rewarded by my federal government.  Great deal, but is that a fair deal to everyone else who has foreclosed before Congress passes this law?  Here, government intervention is propping up parts of the economy that should not be being propped up. 


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