WASHINGTON (AP) - A mortgage aid plan is on track for passage in the Senate as soon as today. The massive foreclosure rescue bill cleared a key Senate test yesterday by an overwhelming margin, with Democrats and Republicans both eager to claim election-year credit for helping hard-pressed homeowners.Help for those 400,000 distressed buyers? Get serious. It's our tax dollars going to keep all those damn bankers afloat so they can make more incredibly greedy and stupid financial decisions in the future.
The mortgage aid plan would let the Federal Housing Administration back $300 billion in new, cheaper home loans for an estimated 400,000 distressed borrowers who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans.
Remember that the vast majority those 400,000 "distressed buyers" should have never been awarded home loans in the first place. It's all about income. Someone that makes $300/week will not be able to keep up on this new government insured, taxpayer-backed mortgage any more than they were able to keep up on their old mortgage. It's pretty simple really... Anybody making $15,600 a year should not be buying $200,000+ new homes.
So now the feds are backing new loans to these proven losers with our money, loans that no sensible financial professional would make in a million years, guaranteeing that we will see a repeat of all this next year... and another bailout, after the elections.
These people will blow up on their all-new taxpayer-backed loans just as they have on their first loan - they just don't make enough money - so the final chapter on this mess will be about how the bankers are going to be three hundred billion dollars richer, and how us us taxpayers are going to be three hundred billion dollars further in the hole.
So who's in charge of all this? I don't know, but I do think we should find out, and them go dig them out of their little snake holes and hang them high.
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