Protestantism

» Migisi - First Principles

In response to First Principles posted by pink101:
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What we need is a massive rethinking about home financing in the American economic system--one in which the government finances home mortgages.
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House discusses $15 billion mortgage bailout
Committee hears proposal to buy up to 1 million loans in next five years
http://www.msnbc.msn.com/id/23359239/
updated 5:50 p.m. CT, Tues., Feb. 26, 2008
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"WASHINGTON - Investors could sell up to $15 billion of troubled mortgages to the government under a plan key House members are discussing to bolster the U.S. housing market.
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"The tentative plan would allow the government to purchase up to 1 million mortgages over five years in an effort to help struggling borrowers avoid foreclosure and financial markets avoid more credit-related losses. The loans would be bought by the Federal Housing Administration, a Depression-era agency that insures loans made to borrowers with poor credit.
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"The effort shows that the housing crisis has evolved to the point where government officials are considering bailing out large groups of borrowers and Wall Street investors - something that seemed anathema to Democrats and Republicans all last year. Still, many lawmakers and the Bush administration have been leery of proposals that would transfer risks to U.S. taxpayers...."
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"In addition, the document said lawmakers are working on a separate $20 billion in grants and loans to state and local government to help to buy up foreclosed and abandoned homes."
(end quote)
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I have a hard enough time paying my OWN mortgage. I really don't need or want a tax increase to help pay off someone else's bad debt AND bail out the unscrupulous Wall Street mortgage bankers -- that gave loans to unqualified people in the first place and created this mess. This proposal, and any bail out legislation, only benefits the banking industry - NOT the defaulting homeowner. The homeowner will still owe on their loans, no matter what private lender or government agency holds their papers. It's a SCAM on the American people!

-- posted by Migisi