Mortgage Plan Tries to Mitigate an Unemployment Problem That the Administration Just Worsened

NRO ^ | March 26, 2010 | Jim Geraghty

[Scanian]

An early point about the Obama administration's new plan to help homeowners by forcing banks and lenders to reduce monthly mortgage payments to 31 percent of income, usually unemployment insurance:

The new push, which the White House is scheduled to announce Friday, takes direct aim at the major cause of the current wave of foreclosures: the spike in unemployment.

As noted in several places, the new health-care bill has already made the cost of employees more expensive and taken away capital that could otherwise have been used to hire workers.

Farm-equipment manufacturer John Deere "said it expects its expenses to rise by around $150 million on an after-tax basis, mainly in the second quarter, as a result of the legislation."

Verizon "told employees in an email Tuesday that Verizon's costs will go up in the near term, pinpointing a tax-subsidy reduction for retiree health benefits."

Heavy-equipment manufacturer Caterpillar "said that its first-quarter earnings will be hit with a $100 million after-tax charge under tax law changes attached to the new health care reform legislation."

[DoughtyOne]

I don’t understand how this won’t destroy liquidity again in short order. If people aren’t making their payments, the lending institutions will come under severe distress quickly.

[HiTech RedNeck]

reminds of the song of the old lady who swallowed a fly, then swallowed other creatures of ever increasing size to take care of the immediately prior problem, until she finally died upon swallowing the horse.

[raybbr]

Mortgage Plan Tries to Mitigate an Unemployment Problem That the Administration Just Worsened

The goal is to have plan in place and paying out just before the next election so votes can be bought.

[HiTech RedNeck]

i doubt that even axelrod is smart enough to time it right.

[Republic]

yep. And all of it using our money.

We have inept old communist hippies playing with OUR money. Money they consider THEIRS to do with WHATEVER they will without penalty of abuse.

[familyop]

And with a bond collapse, will come steeply rising interest rates in other areas. ...could see a decline in real estate and auto sales, then stock price declines, then more unemployment resulting in more government spending resulting in more government debt. Then another iteration of the cycle begins.

[HiTech RedNeck]

it will make carter malaise look like boom times

[familyop]

Just goes to show us that political prostitutes will eventually try to swallow a horse. ;-)

[Kartographer]

So if I wasn’t working I get free healthcare, free house to live in, free food, unemployment check forever, even a free cellphone in some places, so I guess the lady was right!

http://www.youtube.com/watch?v=P36x8rTb3jI

[Repeat Offender]

Ahh, they just need to start within the next month or so.... they haven't even spent all of PORKULUS I yet.

Remember, it was "structured" to help the jobs continue to be saved or created for the next two years or so (read it will boost immediate polls amongst the entitlement class and then be used to help us at mid-term elections).

Our grandchildren have already borrowed the money for us.

[familyop]

"it will make carter malaise look like boom times"

That's very true. We, the younger half of Baby Boomers, will not buy them out of it this time. They fooled us once. Now, they are mainly recirculating revenues between the recipients of government revenues and government with no production of real wealth between them.

They keep doing that, they're going to eventually be forced to shrink (too late) and keep shrinking, until they disappear with a little popping noise. The money printing inflation scheme only worked with a large manufacturing base to steal higher taxes from. Without production of real value now, the money will be rapidly far more worthless than it was in those days and as worthless to big government recipients as to everyone else.

[griswold3]

http://www.whywork.org/rethinking/whywork/whywork.html

See CLAWS
Once all your needs are met by the government....why work?

[wita]

Our grandchildren have already borrowed the money for us.

There is a comforting thought. /sarc

[C19fan]

The admininstration just added a new 31% marginal tax for unemployed homeowners. If you want to gain the system just keep on receiving unemployment checks and you get to live in your home cheap for 6 months. As with all these programs I expect a loosening of criteria and infinite extensions.

[C19fan]

I should of clarified a 31% tax for getting a job.

[EVO X]

I don’t understand how this won’t destroy liquidity again in short order. If people aren’t making their payments, the lending institutions will come under severe distress quickly.

I think the government is planning to pay institutions something if they follow orders. If the something is better than nothing, they will take the something..

[Terry Mross]

It ain’t tax dollars. The article says they’ll “force” this. How can the government “force” lenders to do this? They did it in the 30’s so how is it done?

[Terry Mross]

Brilliant observation. I’m unemployed. My wife works so will I qualify? I’m starting to think “Get all you can get ‘cause they’re going to tank us all anyway.”

If you can’t beat the government teat, get on one! My new motto.

[DontTreadOnMe2009]

reminds of the song of the old lady who swallowed a fly, then swallowed other creatures of ever increasing size to take care of the immediately prior problem, until she finally died upon swallowing the horse....

Obama in’t gonna swallow the horse

He’s gonna make us swallow it.

While he rides around in a Limo

with Larry perhaps.

Did you see where he rode around in a BMW at Occidental

belonging to one of his MANY male Paki Muslim “roommates” ...???

(Never heard of a single female friend of O before have you ...?)

---

Obama is and was a MARXIST in college.

Here is an interview from someone who knew him: send to everyone you know if you wish to spread the (blocked) word:

http://www.newsrealblog.com/2010/02/13/marxist-obama-why-the-media-has-been-silent/

http://www.wor710.com/pages/6350883

http://www.youtube.com/watch?v=mBGBszZ2Qw0

The full interview is devastating.

Too bad Fox News ignored Dr Drew in 2008 when he contacted them.

We now know the details of Barry’s Occidental years.

He was an avowed and committed Marxist.