Ok so today I was reading an article in the Washington Post. The article featured California Gov.Schwarzenegger, in which he levied that Washington got us into this economic free fall, and should get in gear and get us out of it. While I agree, they did with the ‘sub prime load debacle’ engineer this recession. I do not simply trust that they are the ones who can or should be trusted to fix a mess they made!
I mean lets be real. They through legislation, pushed for less qualified people to get homes they could not afford. They backed organizations like ACORN, who would go out into communities and spearhead charges against banks who tried to maintain their fiscal responsibility in lending. They advocate putting poverty level people into to houses, who have no idea what sort of documents they are signing, nor access to legal advice or even the most basic knowledge of the home-owning responsibilities.
It wasnt merely the payments that got the sub prime markets in trouble. Its that the targets of the loans were not always prepared for home ownership. Not only financially, but in basics. When they thought of owning their own place, their eyes lit up with spirit. They looked over their budget and found that the payment fit.
However they didnt account for upkeep. What about taxes, insurance, water/sewer(renters dont always pay these), how about increase energy spending, lawn care, natural disasters, etc. These people were no more ready to buy a house then an 18 year old. Even though its sounded morally correct, it does not mean its always possible.
Though, the government decided to push through and force these people and lending companies into risky loans. Couple that with wall street devising a disastrous mortgage backed security, based on this new boom in real estate. Then make it a trifecta when the government allows Fannie & Freddie to relax its standards, so it can buy up the bad debt(at the time it wasnt bad but), this just perpetuated the landslide waiting to happen.
See this is the reason why government, particularly the federal level needs to stay out of the free market, and get out of the domestic charity. Every single time they try to push something on the people, proclaiming the humanitarian moniker it turns into a dark brown pile of steaming feces.
But thinking the government can ‘bailout the world’ is right on the same track as sub prime lending! Lets think about it, first it was FM/FM, then AIG, then the banks, now the Big 3, and simultaneously we are fighting tw wars on two fronts, and states are now in trouble….how can the federal government be the hero?
Here is another thing:
Schwarzenegger told the Greater Fresno Area Chamber of Commerce last week that the federal government gives California 80 cents for every tax dollar the state sends to Washington — meaning there is $40 billion being held back. “So it’s not like we’re asking for a bailout, because it’s our money. We’re just saying, ‘Hey, give us some of our money back,’ ” he said.
In New York, Errol Cockfield Jr., the governor’s spokesman, said the state each year gives the federal government $89 billion more than it gets back, so Paterson prefers the term “handback.”
Lav said: “It’s federalism. . . . I wouldn’t call it a bailout — it’s government to government.” http://www.washingtonpost.com/wp-dyn/content/article/2008/11/15/AR2008111502380_2.html
So how smart is it that we allow the federal govt to take money from our states and then simply give back what they see as fit? Wouldnt it be more smart, to let the states pay their bills and meet a certain percent(if it be 20% in this case) of payout to the federal govt.?
Ah you guessed it! No because what if the government wanted to suddenly return less? They get their money up front and “oops sorry we bailed out GM….no money for you Arnold.” See the government has gotten away with becoming a superpower against its own people and it wasnt supposed to be like this.
Yet the myrmidons allow it. Yes you- stand up and Undrone, big federal government isnt taking us to the promise land!
Pronunciation: \?m?r-m?-?dän, -d?n\
1: a loyal follower ; especially : a subordinate who executes orders unquestioningly or unscrupulously