The Obama administration announces today it is poised to "help" distressed homeowners by forcing banks to modify home loans or to accept partial payments for an extended period of time. Is this a welcomed reprieve or another political stunt aimed at quelling angry middle-class America?
The move is timed to correspond with the November mid-term election, and even though it may give temporary relief to some 200,000 to 1 million homeowners, the long-term economic costs could be a devastating chink in our financial foundation. Once again, our government is stepping inside the free-market circle to "regulate" and "assist" in an ailing market. But what happens to the banks and mortgage lenders?
They stand to lose billions in loan revenue which will further drive up our unemployment levels. More people will lose their jobs resulting in more people being unable to pay their mortgages resulting in more people getting the government assistance resulting in further job losses resulting in more people being unable..... I think you get the point.
By the way, when did we start rewarding people who didn't keep their contractual promises?
The move is timed to correspond with the November mid-term election, and even though it may give temporary relief to some 200,000 to 1 million homeowners, the long-term economic costs could be a devastating chink in our financial foundation. Once again, our government is stepping inside the free-market circle to "regulate" and "assist" in an ailing market. But what happens to the banks and mortgage lenders?
They stand to lose billions in loan revenue which will further drive up our unemployment levels. More people will lose their jobs resulting in more people being unable to pay their mortgages resulting in more people getting the government assistance resulting in further job losses resulting in more people being unable..... I think you get the point.
By the way, when did we start rewarding people who didn't keep their contractual promises?
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