Think that $275 Billion will be enough? THINK AGAIN. Let’s review Obama’s figure inflating. Even before the election, Obama had a hard time getting numbers straight. Obama intends to tax the wealthy (those making over $250,000). Obviously, that was revised to those making over $200,000 and then those making over $150,000.
The spending bailout (that Obama refers to as a stimulus) got revised several times higher to add in pork spending, of course. Now with his most recent bailout revisions for homeowners, the number is more than 6 times the original figure. You can expect it to be increased from there.
President Obama offered a long-awaited plan Wednesday to spend up to $275 billion to help troubled homeowners refinance and stay in their homes.
The program, which was far more expensive than the $50 billion the administration initially suggested, aims to assist up to 9 million homeowners who are behind on their mortgage payments, in danger of losing their homes or stuck with mortgages that they cannot refinance because their home’s value has dropped below the outstanding loan value.
Fannie Mae and Freddie Mac would play a critical role in helping some of the one in five homeowners who are “under water” in this way. The mortgage finance companies, which are now under federal government control, would receive $200 billion in funding to cover expected losses.
The remaining $75 billion of the plan would come from the Treasury Department’s bank bailout fund. This money would be used to subsidize homeowners and lenders who negotiate lower payments on defaulted loans.
Here’s an idea: instead of punishing the fiscally responsible homeowners through increased taxation, let’s punish the people who messed up financially and let them default and have a foreclosure, let their credit be damaged, and let them learn from their mistakes rather than be rewarded for their mistakes.
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