February 22nd, 2008
I’m reading Dwight’s commentary this morning, and Bam!, another great gov’t idea comes out like a tornado in a trailer park.? This is a potential for destruction on many levels.
Basically, since Plan 1 (New Hope) and Plan 2 (Newer Hope) are bound to fail, the gov’t just can’t let well enough alone.? Now they want to allow distressed (stupid people who should have read the documents) homeowners to refinance their house that they paid?$500,000 for, at the current market value such as $300,000.? The bank will be given a Negative Equity Certificate that in theory they could redeem if the house is sold and prices have risen (and what happnes if prices don’t recover enought?!?).? This allows the banks (stupid people who should have forced the above people to read the documents) to put off taking losses.?
It is a shell game plain and simple.? The country would be better off letting the cards fall.? Let the people lose their house.? That’s what happens when you make a very bad decision.? Let the banks take their lumps.?
We don’t learn without pain.? If you remove all of the pain from bad decisions there is no incentive to change course.? It is not the gov’ts job to save us from all of our bad decisions.? Get out of the way.?
Here is Dwight’s take.
-- By +Chris Duncan