MY Vast Right Wing Conspiracy

The dumbest people on Earth

• Posted by Chris on October 7th, 2008 filed in 2008 election, Barack Obama, General, John McCain, Politics, WTF    

So who are the dumbest people on Earth according to Chris? Read on. It’s not who you think.

Meet Tom and Tina. They have bad credit. They picked up a loan in the subprime market and now, they can’t pay. They’ve fallen behind and now they are in default. However, they didn’t get their mortgage through Fannie or Freddie. They’re screwed, right? Well, not so fast my friend. You see, Tom and Tina got their loan through the FHA. Well, we can’t have FHA loans looking bad can we? That won’t do one bit. FHA currently has 3 in 10 mortgages and many are like the one owned by Tom and Tina: subprime and in default. Enter congress. Per Bloomberg: Congress has directed HUD to buy up those bad mortgages and re-issue them. They will sell them off to someone but still back them. Meaning when Tom and Tina fall behind again (and they will), the bank will go to HUD and will say “pay their bill please” and you and I will be responsible for it. Welcome to the Hope for Homeowners program that congress snuck into that crap sandwich on 10/1. It allocates up to 300 billion over the next couple years for HUD to do just that. Now, the CBO says that 1 in 3 of these loans will go bad again. But that’s ok. You and I will take care of them.

What makes this worse, is our candidates for president are in full support of this or worse. John McCain proposed just this kind of thing in the debate on Tuesday the 7th. In the last debate Obama suggested this and reducing the principal in the process. Think about that one. Tom and Tina have been paying on their 100k mortgage for a couple years before having trouble. The home is still worth 100k so they have a small bit of equity. If they sold, they would make a small profit maybe depending on the realtor costs. But now enter Obama’s idea. The bank is told to rewrite the load as a 75K loan for 30 more years. Now Tom and Tina turn around immediately and sell the house for that 100K and make a quick 20k plus profit all courtesy of the federal government. They can and will do that over and over. The “poor” know how to game the system and exploit every dollar. This will become the new career. Defaulting on mortgages to get equity and selling for that equity.

I’m beginning to think that the dumbest people on Earth are people like me who actually pay their bills on time. I see all that is going on and I keep thinking why should we when you can apparently just walk away and have no consequences. It’s truly sad and is what happens when we stop judging people based on the content of their character and make failures into heroes.