Many, many people feel like Bush has lead us so far down the wrong path, Obama has become like a breath of fresh air.
I don't feel that fresh air.. In fact, Obama's economic advisor, Franklin Raines, is the guy who told us back in 2004 that homes are such a riskless investment that they the GSE should only be required to hold 2% capital reserves:
ca.youtube.com
ca.youtube.com
videospider.tv
And yes.. these videos might be a politically motivated, but you have to listen to the words being uttered by the Democrats like Barney Frank and Maxine Waters. No one forced them to say what they did. No one forced Franklin Raines, who was also Clinton's budget director, to say what he said. And certainly no one told Waters that she had to applaud the continuance of 100% loans for affordable housing.
So combine that with their other schemes of violating the spirit of government policies by placing illegal aliens into "affordable housing" as well, and you really have to ask who is more credible. Who believes that protecting the taxpayer dollars is more important than "spreading the wealth" by programs such as sub-prime mortgages?
Sure, the Republicans should have done more to regulate the mortgage industry and their only lever was by restricting the number of sub-prime mortgages that the GSE's could purchase from these predatory mortgage brokers. But they were directly opposed by the Democrats, who perceived using the implicit governmental backing of the GSEs to increase their voter base.. (Look what we did for you!! We helped you purchase a home even though you couldn't afford it, or weren't even a US citizen).
Yeah.. that's the kind of "fresh air" I can do without Mindmeld..
The damage has been done, and the only role the government should play now is to assist worthy families to get into government subsidized housing in order to prevent the equity of their homes from FURTHER undermining the home markets. We shouldn't support a new real-estate boom, but we should attempt to put a floor under it and help owners to work their loans out over 30 years so that their homes have a reasonable expectation of being worth what they paid for them originally by the time their loans mature.
Hawk |
