Does Obama actually want America to get back to work???

Discussion in 'Current Events' started by Lue C Fur, Mar 29, 2010.

  1. Lue C Fur

    Lue C Fur Evil member

    Does Obama actually want America to get back to work?

    By Bill Wilson

    Does Barack Obama actually want America to get back to work? That is the question that I asked myself as I read about his latest brainstorm: forcing mortgage lenders to not collect payments from those who are unemployed.

    As reported by the Washington Post, "Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower's income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all."

    While a typical Obama sound bite idea, in principle this is just another in a long series of economic disasters that has flowed daily from this Administration. It seems intent on plummeting the nation into Third World status.

    Ronald Reagan's old adage applies: "If you want more of something, subsidize it; if you want less of something, tax it." In this case, Obama's basic plan is to use what remains of the $700 billion Troubled Asset Relief Program to subsidize unemployment and sloth.

    As a result, that is what they are going to get — a lot more of it. While everyone is sympathetic to the hardship faced in this tough economy, every American who pays their bills and plays by the rules is being screwed to the wall by Obama's new mortgage bailout.

    But, it's even worse than that. The irony of Obama and his cohorts attempting to force the ever-shaky mortgage banking industry to cover the loans of the unemployed is that it creates the very real possibility of a double dip financial crisis. What bank is going to lend money in an environment where the government essentially demands that they not collect the debt? Of course, in the end, someone pays, and as usual it is the poor slob who pays his mortgage every month, or wants to buy a new house.

    Harry and Mary Wannahome will now likely have to pay an interest premium to cover the possibility that he/she may become unemployed and not make payments for months/years at a time, further increasing the cost of purchasing a home and making even the most modest home even less affordable.

    Banks are likely to require significantly higher interest rates on homes that are purchased with lower down payments denying young, prospective homeowners the opportunity to buy a home until much later in life, if at all.

    Naturally with demand for homes spiraling downward, construction jobs will continue to be scarce, but that isn't the most egregious impact on employment.

    Through this subsidy initiative Obama is actually incentivizing people to become unemployed. If one is behind on his or her mortgage, it may make more sense to quit your job rather than get a second one to pay his or her bills.

    If an employer offers you a job at $20 an hour, can you really afford to take that job when it will kick your mortgage payment back into gear? Wouldn't you be better off working for $10 an hour under the table, rather than double that with your mortgage payment due?

    Effectively, the Obama free mortgage giveaway coupled with the seemingly infinite numbers of extensions of unemployment insurance benefits are nothing more than an incentive for people to choose to continue to be unemployed and dependent on the benefits provided by the government.

    I always used to assume that Obama and his ilk just didn't understand basic pocketbook economics, but the more I think about it, maybe Obama really doesn't want Americans to go back to work.

    After all, a working person doesn't rely on the government for his or her well being. But someone who is unemployed is dependent on — some would say enslaved to — the government services they receive and the masters who provide them.

    Something to think about.

    Bill Wilson is the President of Americans for Limited Government.
  2. moreluck

    moreluck golden ticket member

    I sometimes feel discriminated against. Bank of America, who got the loans from Countrywide Funding, is forgiving a lot of the principle to those people. I pay my loan payments on time and have never missed come B. of A. doesn't forgive some of my principle ??
  3. Lue C Fur

    Lue C Fur Evil member

    I feel your fustration. It seems that our govt (Democract and Republican leaders) rewards failure. Whatever happened to admiting you screwed up and taking responsibilty for your actions. I have no problem giving a hand to those that deserve it but some of these people dont deserve any help.
  4. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Let me see ...
    These people are not working, they have a house, probably a car, probably several TVs, eat three plus meals per day and they are failures?

    We leave home and go to work for 12 plus hours a day, get all stressed out working at jobs that provide no real satisfaction and we are the winners?

    Makes you wonder about this thing called the American Dream!
  5. pickup

    pickup Well-Known Member

    I wonder about it sometimes. I think it came true. That ain't a good thing.
  6. klein

    klein Für Meno :)

    It's actually nothing new. Look at credit card debt forgiveness and settlements. Been going on for years.

    But, yes. You can foreclose those homes. Let them rott. Let the banks lose all thier money. Let the housing market be saturated with too many homes... Let it lead to a larger collapse of the housing market. Put more people in shelters, streets, welfare homes, whereever...
    And see if thats a better solution.

    Hard call to make.
    Either way. Extra costs involved, and probably even bigger bank losses.
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Klein, keep in mind that with credit card forgiveness and settlements, the credit card company will send you an 1099 showing the dollar amount as income and you have to claim in on your taxes.

    I would like to echo what has been said above. What about the people that pay their bills on time and were smart enough not to overextend themselves? Where is our bailout?
  8. klein

    klein Für Meno :)

    I did not know that (1099), Learn something new everyday !

    Hey, some people reley on the foodbank for food .
    Do you ask, where is my food ? LOL

    But, I know what you mean. In a way it's not fair. But does anyone really know the concequences ? Like, maybe once they sell thier house, they might need to make a repayment ? Or anything like that ? Esspecially, if in the future the house becomes much more worth .
  9. Lue C Fur

    Lue C Fur Evil member

    I thought about that...but if we quit our jobs and go on welfare then how would the goverment get the tax dollars to pay for all the goodies. So in the end someone has to help the freeloaders stay as freeloaders. Maybe they should thank us? Or better yet maybe our worthless govt officials could make them come over and clean up the dog crap in my back yard every week so i dont have to do it. I miss my son...LOL.

    SWORDFISH New Member

    The goverment wants to control our lifes period............... The people of this country will not allow the will that is being forced on us by the governement. Our forefathers fought for what we have do you think we are going to give it away. They want to make people fall in line and be mindless but as you and I can see there is a big group of us just right here on the BC that wont go for that along w/ many other people around the US. As far as this forgiving irresponsible spending BS(Im generalizing) let them learn their lesson the hard way and send them a Dave Ramsey cd. He had to go under before he figured it out.
  11. bbsam

    bbsam Moderator Staff Member

    I have to confess that I simply don't understand this logic whatsoever. I pay my bills on time (actually, that's my wife). We go to great pains to make sure we don't overextend ourselves (that's my wife too). I'm not looking for a bailout. I don't feel like I've missed out on anything by living within my means and I'm relatively happy in life, so why a bailout? It sounds like the older brother's complaints in the parable of the Prodigal Son. Maybe I'm just missing the point and my gratitude at not needing a bailout is getting in the way of my envy for those who do. If so, I don't want to get it.
  12. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I was being facetious. It seems that everyone but you and I and the others who do the right thing each day are getting a bailout. I take great pride in knowing that my financial house is in order and that I will have a secure retirement.
  13. bbsam

    bbsam Moderator Staff Member

    gotcha. sorry I missed the facetious part.
  14. klein

    klein Für Meno :)

    OH well, banks, car industry, even constuction (with stimulus), and many other companies have gotten a bail-out. Including UPS, forgot which State gave them $20 Mill. to stay and keep operating there.
    I guess a few bucks to keep people from being homeless, don't matter much now, anymore.
    Atleast it will keep the value of homes up. Whereby more foreclosures will just sink housing prices.

    Habitat for Humaninty bulids homes daily for the less fortunate. Free of charge, mortgage free.

    But, yes, they could handle it differently, like adding 10 more years to the mortgage, and therfor paying cheaper monthly mortgage payments.
    Perhaps even tax free government loans, that could be later deducted by income taxes when thier salary goes back up, or they get employed, again.

    So, I agree. It wasn't well thought out.
    But, more homeless people and more foreclosures is not the solution either.
  15. Blizzard

    Blizzard New Member

  16. Blizzard

    Blizzard New Member

    what is the incentive to pay on time when those who do not are rewarded.
  17. Blizzard

    Blizzard New Member

  18. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Let us know how that works out for you.
  19. tieguy

    tieguy Banned

    you liberals ( canadian conservative) have to decide what you really want. One minute you hate the banks the next you're worried about them.
  20. klein

    klein Für Meno :)

    I was thinking about US Banks !!! Google Canadian Banks.. they have no trouble at all ! They always profit. And btw, mortgage defaults can't happen by us, anyways. :

    Mortgage insurance is a pillar of Canada's strong housing market

    See the above link. If you don't have atleast 20% down, you'll need to get mortgage insurance !