Posted on 08/08/2010 3:22:45 AM PDT by Scanian
This was the rumor last week. It sounds laughable. I don’t want to believe it. The Treasury Department denied it.
But when it comes to the Magic Kingdom that is the Obama administration, the fantastical has a way of coming true.
“From Washington to Wall Street,” Reuters columnist James Pethokoukis wrote on Thursday, “there are rumors that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth.”
That’s right. If you bet badly in the housing-market casino of the Aughties, the government is thinking of refunding some of your chips so you can play again. You may have heard something about a sub-prime real-estate bubble that popped and nearly took down the financial system with it? President Obama wants to double down.
Unlike most rumors, this one became more, not less, plausible when you examine the details. The White House has made it clear in recent months that it is frustrated by what the Framers called “the legislative branch,” what President Obama calls “politics” and what I call “the wishes of the American people.”
Obama craves a short-term sugar rush for the economy.
(Excerpt) Read more at nypost.com ...
“government-controlled lenders” dangerous at best.
This could backfire.
Certainly the leech’s would love it, but we ,who will have to pay for it. Will not.
“Imperial Presidency” was a book written Arthur M. Schlesinger, Jr. It was about Liberal’s concern that too much power was going to the President. Liberals were faced with a non-Liberal president over-riding a Liberal congress.
Will Liberals be much concerned by an “Imperial Presidency” if a Liberal president is checked by a Conservative congress? That situation will likely exist after the November election.
If this were done, there would be a mass sale of homes driving down the prices even further due to people trying to sell that couldn't before because they were upside down. This mass sell-off would completely destroy the housing market and take nearly every ones life savings with it.
It would backfire big time. Even at this late date, more people still pay their bills and honor their obligations that don’t.
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Right you are.
...”It would backfire big time”...
They insult our intelligence every day and one day, this will bring the situation to a boil which will be impossible for them to ignore. That kind of “redistribution” will not go down in America without a fight..My opinion..
Ruling Class: Inside the Imperial Congress [Hardcover]
-Eric Felten
Was written in response to a 40 year domination by the Lib/Dems.
Sounds like an ideal Cloward-Piven scheme to me.
;-)
Heck, why not forgive college loans, credit card balances, and gambling debts while you’re at it! /s
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