Deval -- liberal idiot (related to Dubbya, perhaps?)
Deval has a great new idea: pressing the lenders holding the mortgages to accept losses so that the homeowners can sell the houses and pay off smaller loan balances. These are so called "short sales." The idea is to stabilize the neighborhoods being hard hit by sub-prime mortgages. Thomas Callahan, the head of the Massachusetts Association for Affordable Housing notes that while he supports the idea strongly, most of the holders of sub-prime junk are out of state ... and so far they have been less than enthusiastic about the "program." The Mass Housing Finance Agency has another great idea, taking $250 million to refinance borrowers more than 60 days lates on their mortgages.
This means one thing: Deval and his band of morons wants the tax payer to bail out those people in the hole with subprime debt way beyond their means. On the surface, this is income redistribution, pure and simple. But it may also serve to bail out the scumbuckets that made the loans inthe first place. Either result is unacceptable. There are, of course, many families who sought to get onto the housing ladder and for them ... I am truly sorry. But the reality is that (most) everyone involved was depending on the "greater fool" theory: they expected to be able to flip the housing stock for a quick profit. 'Cause, as everyone knows, you can't lose money in property -- thereby inflating housing prices beyond the very people most hurt by it, the poor.
But this breath-taking in its impact: the average joe who is prudent with his or her finances, will wind up having to eat the tax increases that will be be necessary to finance the bail-out (for however you look at it, this will wind up costing money). But Deval, being a politician, knows that the poor CAN vote to themselves the assets of the rich. And there are more poor than rich -- meaning that Deval can depend on the "support" of the people. The trouble here is that the "people" do not understand that ultimately, "we, the middle class" might be able to afford the tax hit, we will then be less likely to spend, causing recession, unemployment ... and perversely, doing nothing to bring housing prices back to where they should be.
This means one thing: Deval and his band of morons wants the tax payer to bail out those people in the hole with subprime debt way beyond their means. On the surface, this is income redistribution, pure and simple. But it may also serve to bail out the scumbuckets that made the loans inthe first place. Either result is unacceptable. There are, of course, many families who sought to get onto the housing ladder and for them ... I am truly sorry. But the reality is that (most) everyone involved was depending on the "greater fool" theory: they expected to be able to flip the housing stock for a quick profit. 'Cause, as everyone knows, you can't lose money in property -- thereby inflating housing prices beyond the very people most hurt by it, the poor.
But this breath-taking in its impact: the average joe who is prudent with his or her finances, will wind up having to eat the tax increases that will be be necessary to finance the bail-out (for however you look at it, this will wind up costing money). But Deval, being a politician, knows that the poor CAN vote to themselves the assets of the rich. And there are more poor than rich -- meaning that Deval can depend on the "support" of the people. The trouble here is that the "people" do not understand that ultimately, "we, the middle class" might be able to afford the tax hit, we will then be less likely to spend, causing recession, unemployment ... and perversely, doing nothing to bring housing prices back to where they should be.
posted by Zaphod at Monday, October 15, 2007
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