The First of What Will Undoubtedly be Many More Bailouts is Coming

by Caomhin

Today, Obama announced his new foreclosure aid initiative, another massive government spending initiative in the realm of $75 billion dollars.  Fox Business has a solid write up on this new wealth redistribution effort which is most definitely worth the read.  Here’s a choice selection to serve as a teaser:

The administration’s plan will assist “the people most in need,” a source told FOX Business. But some families in danger of losing their homes – such as families in which one spouse has lost a job, thus cutting the family’s income significantly — will not be able to qualify because they just won’t earn enough income to pay even lower mortgage payments, sources said.

Once again, the government is going to intervene and decide winners and losers.  There is no constitutional justification for these types of actions and they fly in the face or capitalism.  The administration is not hiding the fact that they are vigorously pursuing socialist policies.

They are insisting, of course, that there will be strict guidelines to be followed, so rest assured, if you are $1 over their threshold, you will get no help.  If you borrowed responsibly and lived within your means, you can rest easy that the money being withheld from your paycheck will go to those companies and individuals who did not.  Remember, the housing market bubble was built up through government intervention and the Democrats refusal to admit there were massive problems with Fannie Mae and Freddie Mac when Republicans called for investigations back in 2006.  Now, Obama and his cohorts are screaming at the world that the sky is falling and that if we do not do exactly as they say, the world will come to a crashing halt.  Hope, indeed.

Many people signed contracts knowingly or at least having some sense that they would not be able to keep up with the increasing payments in the future.  I do not believe these people should be rushed to the front of the lines for help, nor do I believe it is ethical to finance our problems on future generations.  At some point, the task falls to us to fix these situations and extreme challenges and accept responsibility for our actions.  How many people did the right thing and took out loans which they reasonably expected to pay and were approved in accordance with what they could actually afford that are suffering?  What right does the government have to tell them that because they lived within their means and were responsible that they will not receive help?

The truth of the matter is that times will get better, if we let the free market run its course.  The economy will always have upturns and downturns, these shifts are inevitable.  Short term assistance in the form of tax cuts (after all, many people who could not afford houses, and knew they couldn’t are responsible RENTERS) would greatly help the citizens of America by immediately putting more money in their pockets with which they would be FREE to decide how to spend.  Liberals howl that they may not spend this money and it won’t help the economy.  Well, lending institutions need liquidity as well, which will make loans more accessible and credit flow more easily with a cash infusion through deposits, IF people decide to save their money.  If they decide to spend their money, more companies will see sales rise,  but either way, more money is entering the marketplace with citizens free to choose to do with their own money as they will.

The government has no right to decide winners and losers, to arbitrarily decide who it will help, and who it shall not.  Targeted tax cuts and limited actions beneficial to all citizens are the only policies which the government has a constitutional right in which to engage.  As deviations occur, it is the duty of the citizens to voice opposition against these actions and to call our elected officials to task.

UPDATEDI spoke too soon, the plan is actually for $275 Billion.  They didn’t fully release all the details at once (surprise, surprise).  Obama and the Liberals in charge of Congress are spending money like a drunk college freshman with their first credit card.  Except in this scenario, we’re the one’s who are going to have to deal with it when they max it out.  For those keeping record, we’re now well over $3 trillion dollars spent by the Obama administration in just about 4 weeks ($2 trillion for the coming TARP Part 2, $1 Trillion for Porkfest 2009, and $275 billion here) with much more to come, I”m sure.  GM and Chrysler are already back at the trough.

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1 Response to “The First of What Will Undoubtedly be Many More Bailouts is Coming”



  1. 1 » The First of What Will Undoubtedly will be Many More Bailouts is Coming Trackback on February 18, 2009 at 6:47 pm

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