Thursday, March 26, 2009

Land of the Free to Whine

And home of the over entitled. So, our President, in his entire web enabled glory, invited us, his loyal subjects to the White House website to submit questions on a variety of subjects. Obviously the one that most interests and concerns us, was his housing forum. The range of the questions was pretty narrow and most questions came in a few different forms, but the overall theme of the questions was sadly narrow.

Krysty from Corsicana, TX asks
Instead of bailing out banks, why can't we pay off the mortgages in foreclosure so banks would still get the $$ AND people can keep their homes? If we can give away $$ to huge corporations, why can't we give it to the American people who pay for it?
Well, Krysty with an extra 'y', its like this. You’re proposing a massive welfare state, which this country just isn't quite ready for, in spite of the socialist leanings of our President. Besides, how long will it be before someone like you is whining that someone down the street or around the corner got their bigger house paid for by this magical program you’re suggesting? I think it will take less than 5 minutes. Corporate welfare isn't optimal, but far more people depend on the big banks and the infrastructure they provide, than depend on the individuals staying in their over priced ill financed homes. This problem is far bigger than many people truely comprehend. Then there is this fool...

Jenn from Honolulu, Hawaii states
My husband and I work FOUR jobs to stay current on our mortgage. I was forced into an ARM and am afraid of my mortgage adjusting. No one will refinance our loan and I would need to default for loan modification. What options are available?
Well Jenn, I admire your aggressive effort and willingness to work FOUR jobs, but nobody forced anyone into an ARM, most people ran head long into an ARM, as they irrationally pursued homeownership with all the trimmings. The only option that should be available is foreclosure and a market correction to more normal pricing. The American Dream, as the cliché of homeownership has become is really a privilege, not a right. Same goes for refinancing.

Alan McVickers from Hagerstown, MD, not far from our nations capitol seems to think otherwise
We pay our house on time (bought in 2007), have great FICO but can't refinance due to housing loan to value issues (economy based). What plan is there for people like us to get a lower rate without points, more cash down and no mortgage insurance?
Sorry Alan, if you couldn't afford it, you shouldn't have bought it.

I appologise Alan, it was incorrect of me to assume you couldn't afford the home.

What I should have said is that a refi is simply not a right guaranteed to everyone. Yes, if you could refi along with millions of other home owners, you would have money to put into the economy, however, based on your comments for this posting, you haven't read any of my blog. If you had, you would understand that a correction, of epic proportions is absolutly necessary for our ecomomy to begin functioning normally again. Forestalling that correction only prevents a natural recovery, which at this point is our only option. We've over spent for 2 decades, our credit is maxed out. Furthermore, I think you over estimate the impact of the resulting spending if everyone were able to refi.

Then there are the people who will be most shafted by any bailout of our nations irresponsible borrowers.

Keesha from Valley, AL asks the real question, which I doubt our President will answer.

Is there are way to stop holding up home ownership as a banner for the American dream? Do you have a plan to give renters the same attention and opportunities for tax credits that homeowners get?
In fact, I will send an apology to the White House and post it here, if President Obama goes on national TV an answers this question or one in the same vein, in forth coming and believable manor. I'll be even more shocked if they answer my question.
Mr. President, I get the impression that your plans are essentially using my tax dollars against me, by using public funds to put a floor under troubled home owners. Whats in this for me, besides paying the freight on the death of my American dream?
The question length was limited, or I would have added that the feeble tax credits that put forward as part of this bailout, for first time buyers are a drop in the ocean, considering current price levels.

The President didn't take any tough questions. Mostly, he appeared to take questions which allowed him to further present his favorite issues and agenda. You can read the recap here. Like a good lawyer, he didn't allow any questions to be asked which he wasn't prepared to answer. Disappointing, eventually we'll see the emperor isn't wearing any clothes.


djhives said...

you are a moran. You are CLOSE, but not there. There IS a global welfare state planned. It's called the new world order.

Whist the 'news' says 'the bankers' are getting as bail out, the opposite is true - the SHEEPLE have been getting a bail out for the past 6 years - it was called A MORTGAGE.

Now that the sheeple cannot handle their own finances, they will BEG for *their* bailout - read: WELFARE.

Right now 9% of this country is BEGGING FOR FREE MONEY.

Get a brain moran.


you're welcome


Graffiti Monkie said...

I definitely felt as though the President just used this as propaganda to further instill the trust in our people that he is a change accepting president.

This was nothing more than a stunt some marketing whiz working for the white house must of came up to boost his approval rating as the listening president.

I tried to give him a realistic question as well, one that wasn't with selfish personal gains behind it as follows:

"With the National Debt hovering over $11 Trillion, how does the White House plan to fund all these new stimulus’s and public bailouts, and how do we plan to pay down this debt before the next generations get hammered by the mounting responsibility?"

But like your post suggests it seems like the American people are mostly concerned with their own current situation too much to care about being fair in this day and age. We owe so much to foreign countries threatening to convert the reserve currency away from dollars so why doesn't anyone address the fact that we can't even fund anymore initiatives until we start repaying our debt to these lending nations.

Markus Arelius said...

If there is a silver-lining to find it would have to be surrounding the recent legislation passed by Congress and signed by the President to put a floor on house prices and save people's homes. In most markets this legislation will do very, very little to save people's homes.
And it does not address the $61 billion dollars in Alt-A mortgages yet to recast this year and through 2011(keep an eye open this May-June '09). $45 million of these loans were signed by financially illiterate Californians.

I find it amusing that so many Americans somehow believe that the recovery will kick in within 6 months or so. Those that do are in for a rude awakening, in my view.

Alan McVickers said...

Like politicians you completely missed my point. We bought a house that we could afford, and we can still afford. The point was and is, people like us have not driven down the homes values by not paying and being foreclosed on, but we are the ones penalized due to foreclosed property being 60 cents on the dollar. If good law abiding, responsible billing citizens could get a reasonable refinance at the lower rates the “bums” are getting, the money we save can be pumped back into the economy. Isn’t that the idea, for regular folks to stimulate the economy and not the government? Perhaps you should read a post with better focus before you post a off point reply.

Alan McVickers

Markus Arelius said...

I try not to nitpick other people's posts particularly because blogger doesn't offer a spell check feature for comments -unless, of course, like you, the person is calling other people names, or making otherwise stupid assertions about other people's intelligence.

If you want to insult someone online, then you might want to try to spell the word correctly. Otherwise they will conclude that you too are a "moron" without a brain.

It's "moron", not "moran".

A "moran" is an unmarried male warrior of the Masai people in Africa.

Hmmph, surprised you didn't know that.