Thursday, October 30, 2008

This Will Be A Disaster

The government is working on a plan to remove the risk of foreclosure from 3 million home owners.

These over priced, ill financed homes need to be returned to the market in order to return home prices to historically normal levels that are in parity with costs of renting and personal incomes. Everyone who was priced out of the market by the real estate bubble along with the millions who have yet to come into the market place will NEVER be able to afford to own their own home without some sort of drastic action to readjust incomes to costs of ownership. In simple terms, I am talking about massive inflation with no real growth in wages. Incomes will rise to meet the cost of living indices. Other costs for food, energy and other consumer goods will rise too. Once again Washington is looking to rob Peter to pay Paul.

The other problem I have with this that "Paul" accounts for less than 10% of the households in the country, who are in trouble with a mortgage. Peter is a bit larger and more complex. The "Peter" who is paying is the rest of the population, who aren't in trouble with their mortgage. "Peter" is every potential home owner who was priced out of the market. "Peter" is every young person who has yet to graduate from school and enter the work force in pursuit of the American dream which is being stamped out by people like Christopher Dodd, Barney Frank, Nancy Pelosi, Harry Reid, Hillary Clinton and Barack Obama.

Their names and dozens of other political leaders who have pandered to an uniformed public, in the name of Main Street, will appear on the epitaph of the American Dream, as it killers.

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