Some people blame the current downturn of the economy on Iraq.
They are wrong. While it is expensive, it still puts money into the hands of members of the Armed Forces and Defense Contractors, among others, which–for the most part–goes back into America.
The economy took a turn for the worse when the housing bubble “burst”, sending adjustable rate mortgages UP and home values down. Thus, many people cannot refinance.
So, what happens now? Democrats want to bail those suckers who opted for an ARM out with a nice bill. Where does the money come from? Everyone who was responsible enough to do a fixed rate mortgage or are renting.
Thankfully, the Bush Administration and Republicans oppose this. From CNN:
The Bush administration calls the bill a “bailout,” saying it “strongly opposes” the legislation sponsored by House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, intended to make it easier for homeowners to refinance their loans and stay in their homes.
The committee, which estimates that the program could help 1.5 million homeowners who are having difficulty paying their mortgages, is expected to approve Frank’s bill next week.
Frank says the millions of individuals who might face foreclosure because of the expanding credit crisis deserve help, even if they made a mistake by borrowing beyond their means.
…
The Financial Services committee estimates that 1 to 2 percent of the new loans would default, costing the government between $3 billion and $6 billion.
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“You’re telling the guy who did it right that he has to help pay for the guy who did it wrong,” said Rep. Jeb Hensarling, R-Texas. “When people are struggling to pay for their mortgages, they shouldn’t be forced to pay for their neighbors’ mortgage.
“I think about 95 percent of America is either renting a home, they own their home outright, or they’re current on their mortgage,” he said. “So 95 percent of America who’s doing it right is asked to help bail out 5 percent of America who probably wasn’t doing it right.”
Why is it that everyone just wants to dodge responsibility and either A.) BLAME the government; or B.) Expect the government to give them handmeouts?
Political correctness and trying to make everyone happy is going to kill this nation.