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Obama Undermines Hard Work and People Who Play By The Rules
Townhall.com ^ | October 24, 2010 | Austin Hill

Posted on 10/24/2010 9:05:11 AM PDT by Kaslin

Profits at many American corporations are looking pretty good these days, yet companies aren’t hiring.

Many American banks are flush with cash, yet they aren’t making many loans.

And despite President Obama’s repeated promises that his “healthcare reform” legislation would “lower the cost of healthcare,” many health insurance providers are raising the premiums they charge their customers (some by as much as forty percent) as the new law is phased-in.

So why, after nearly twenty-two months of President Obama “gettin’ people some help” (his folksy way of describing his interventions into the private sector economy), is the economy at a standstill, and in some instances getting worse?

Because Obamanomics has put the economy in a state of uncertainty and chaos, and it penalizes hardworking, productive people who play by the rules.

That sounds like a gross generalization, now doesn’t it? And I must be one of those unsophisticated simpletons that Senate Majority Leader Harry Reid and Vice President Biden have recently lamented about, whose tiny little mind can’t comprehend all the complex goodness that President Obama and his Administration have brought about – right?

Well, let me apply my simple mind as best as I can, and consider a few facts. And let’s start by looking at the Obama Administration’s intervention into two of the most troublesome areas of our economy in the last three years -the real estate, and mortgage lending markets.

There’s no doubt that when Barack Obama took office in January of 2009, home values and mortgages were in free-fall. After years of the federal government enabling so-called “subprime mortgages,” which were mortgage loans extended to less-than-qualified borrowers, and after years of highly unregulated adjustable rate mortgages, two lethal conditions ensued both at the same time: the interest rates on those “ARM” loans began to reset upward, while the value of real estate properties began to decline.

Against this backdrop, the Obama Administration set out to do what many people believed at the time was a compassionate thing – and began “rescuing mortgages.” If the Administration could bring the skyrocketing rate of foreclosures to a halt, so the reasoning suggested, then home values would eventually stabilize and a vital sector of our economy would eventually start growing again.

So in March of 2009, President Obama unveiled the “Making Home Affordable” initiatives, a set of federal policies that would make it “easier” for people to stay in their homes and keep paying their mortgages. But how can the government arbitrarily make it “easier” for somebody to pay their debts, when they’ve already made commitments and signed loan documents and then end up with insufficient funds?

The Obama Administration’s approach to this task was multi-fold. In some instances, the “Making Home Affordable” program called for the lender to arbitrarily lower the interest rate of the loan (to as low as 2% for some borrowers); in other situations, the Obama Administration managed to force banks that had accepted government “bailout funds” to eliminate portions of the principle that a borrower owed on a mortgage, or to extend the terms of a mortgage to 40 years or more.

It all seemed so “compassionate,” like a “quick fix” idea that would obviously stop the foreclosure crisis and stabilize the markets. Except that by September of 2009 the fallout of President Obama’s meddling was becoming apparent: despite all the good intentions, well over fifty percent of borrowers who had sought help from the “Making Home Affordable” program had already fallen behind on their mortgage payments again. Worse yet, mortgage lenders, having been stung and strong-armed with a slew of new governmental requirements and mandates and guidelines, were turning away qualified borrowers with good credit and good money.

That was in 2009. Now, in the fourth quarter of 2010, home foreclosures are on the rise again and the Obama Administration, having already spent untold billions of our tax dollars trying to stop home foreclosures, is threatening mortgage lenders with new “fees” and “fines” if they move to quickly to foreclose on a delinquent loan. Meanwhile, interest rates remain at rock-bottom lows, while qualified borrowers are still not getting banks to lend on any consistent basis.

And herein lies the problem: rather than incentivizing banks to begin lending again to qualified borrowers, the Obama Administration’s efforts to “fix” the mortgage crisis have been entirely focused on providing “help” to people who aren’t playing by the rules, who aren’t keeping their commitments, and who aren’t paying their mortgages on time. And because of federal mandates and “guidelines,” private lending institutions are obsessed with “providing help” to people who are for whatever reason not keeping their commitments, rather than providing great service to customers who are paying their bills, or lending to highly qualified would-be borrowers.

This is an example of how President Obama’s attempt at “gettin’ people some help” has actually hurt. And his force-fed healthcare “reform” has in similar ways sent the entire private sector of our economy into a state of uncertainty and chaos.

May we all cast a vote in favor of hard work, and the people who play by the rules, this November.


TOPICS: Business/Economy; Culture/Society; Editorial; Politics/Elections
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1 posted on 10/24/2010 9:05:15 AM PDT by Kaslin
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To: Kaslin
Against this backdrop, the Obama Administration set out to do what many people believed at the time was a compassionate thing – and began “rescuing mortgages.”

Gosh, and there I thought it was "rescuing banks" that made those bogus mortgages on the strength of "somebody else" dealing with payment default.

I must not understand high finance.

2 posted on 10/24/2010 9:11:25 AM PDT by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: Kaslin
May we all cast a vote in favor of hard work, and the people who play by the rules, this November.

Most business's including mine are waiting until November 3rd to do anything risky including taking on more people.

3 posted on 10/24/2010 9:16:22 AM PDT by EGPWS (Trust in God, question everyone else)
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To: EGPWS

Interesting to me with all the vote buying that the Dems have done, they still look to get hammered in the election
Perhaps the “Baraqqi Coalition” isn’t as formidable as I feared.


4 posted on 10/24/2010 9:18:01 AM PDT by nascarnation
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To: Kaslin

The Democrat party has been doing this long before Obama.


5 posted on 10/24/2010 9:20:54 AM PDT by bmwcyle (It is Satan's fault)
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To: nascarnation
Perhaps the “Baraqqi Coalition” isn’t as formidable as I feared.

They were stumping in red (and I don't mean Republican) Minnesota yesterday, that says it all.

6 posted on 10/24/2010 9:22:01 AM PDT by EGPWS (Trust in God, question everyone else)
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To: Kaslin
I tried to refinance recently and found that my property had lost 25% of its value. That is essentially how much cash ("skin-in-the-game") I had used to purchase it. Since now what I owe is what the property is worth I was denied a re-fi unless I put up another 20% to make up the decline. I suspect that's the real reason banks aren't lending, not that they're greedy and hoarding their cash. Now in my situation I made all the payments despite spotty employment (construction worker) by renting the property out and moving in with family just to avoid foreclosure. Under 0bamanomics I'd be better off skipping payments, living there for free and waiting for the fed to force the bank to adjust my mortgage.

I'll say this much , come Nov 2nd Hussain is in for a big surprise. He may have the support of his bought off union leadership, but the rank and file are starting to despise him.

7 posted on 10/24/2010 9:22:04 AM PDT by YankeeReb
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To: YankeeReb
He may have the support of his bought off union leadership, but the rank and file are starting to despise him.

Couldn't have been put better YR!

Obama is between the proverbial "rock and a hard place" between paying off his crone's and pleasing the liberal voters.

8 posted on 10/24/2010 9:26:25 AM PDT by EGPWS (Trust in God, question everyone else)
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Comment #9 Removed by Moderator

To: EGPWS
They were stumping in red (and I don't mean Republican) Minnesota yesterday, that says it all.

Meaning no insult to my Minnesota FRiends, it seems that every story I read about Minnesota demonstrates that the voters are, by and large, nuts. I started feeling this way some time ago when Jesse 'the body' Ventura became Governor. It's gone downhill from there -- Franken is an out and out joke. Voter fraud seems rampant and out of control.

I write this from California where we send people like Pete Stark, Maxine Watters, Babs Boxer, and SanFran Nan ...so I know of what I speak. ....lol!

10 posted on 10/24/2010 9:32:38 AM PDT by The Citizen Soldier (Obama - The "As Seen on TV" President)
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To: YankeeReb

My daughter found out earlier this year, that the house she and my son-in-law bought is worth less then when they original purchased it. My first thought was to tell here, see that is what you get when you vote for the rats, but I let it go. I just hope and pray that she and her husband will wake up


11 posted on 10/24/2010 9:32:40 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: The Citizen Soldier
Helps if you post to right thread.

Egg on face...

12 posted on 10/24/2010 9:33:54 AM PDT by The Citizen Soldier (Obama - The "As Seen on TV" President)
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To: The Citizen Soldier
Meaning no insult to my Minnesota FRiends, it seems that every story I read about Minnesota demonstrates that the voters are, by and large, nuts.

ROTFLMAO!

I don't disagree my FRiend. Well, I did place an early absentee vote for Michele Bachmann. : - D

Living in liberal California you must tote the same attitude as I do as a displaced Minnesotan....

The most hard core conservatives come from my state because they have to live in the middle of liberal hell!

13 posted on 10/24/2010 9:38:36 AM PDT by EGPWS (Trust in God, question everyone else)
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To: Kaslin
This is an example of how President Obama’s attempt at “gettin’ people some help” has actually hurt. And his force-fed healthcare “reform” has in similar ways sent the entire private sector of our economy into a state of uncertainty and chaos.

Reparations are not cheap and are messy to accomplish as whitey ain't giving it up willingly.

14 posted on 10/24/2010 9:41:23 AM PDT by AmusedBystander (Republicans may have helped drive the economy into the ditch, but Obama is driving it off the cliff.)
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To: Kaslin

Obama obliterated the chances of good, decent people who had overextended themselves getting some help from their lenders when he bailed out the banks. Notice I said “bailed out the banks,” not the borrowers.

The millions of Americans who found themselves unable to meet their mortgages were, collectively, in much the same position Donald Trump was in the 1990s when he essentially went broke. Trump —without one dime of government “help” — went to the lenders and said, “Give me a break, so that neither of us loses.” The bankers, realizing that they were at risk as well as Trump, said “Yes,” and, together, Trump and the banks resolved the problems.

When the housing crisis first struck, desperate homeowners were in an analogous position. And so, again, collectively, were the banks, not wanting to be drowned in carrying bad debt. Each had a stake in making sure the growing crisis did not turn into a repossession disaster. Again, for both.

In short, the scene was set for serious negotiation. And that is what was beginning to happen. Then, in stomped Barack Obama, looking to seize the opportunity for his longed-for Marxist housing takeover. (Barack Obama would like nothing better than for all of us to live in government housing, just as he wants us to have to drive government cars, borrow from government lenders, be restricted to government healthcare, ad infinitum, ad nausea — all dreams for his father.)

And whom did Barack Obama bail out? The desperate homeowners? Not on your life. He bailed out the banks — in order to put them under the government thumb, of course.

And where did this leave the desperate homeowner — the guy or gal who had been in the middle of win-win collective Trump-type negotiations with the banks? It left them hearing the formerly compliant bankers saying, “Tough luck, buddy. I already won. I got my bailout. So, either pay up, or get out.” Which is just what the banks would have told Donald Trump back in the Nineties had some idiot like Barack Obama told them not to worry; he had them covered.

And, oh, by the way, when the bankers told the desperate homeowners to get out, it was a pretty tall order to fill — since Barack Obama had already cut off their legs.


15 posted on 10/24/2010 10:02:34 AM PDT by hampdenkid
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To: The Citizen Soldier
MN voted for Ventura because at least he wasn't Mark Dayton. Mark Dayton was clearly planning to use the governor slot as a jumping post to DC. And Ventura showed that you need not be a mental giant to run a so-so administration. The state was still there after he left, and not much worse for the wear.

What the Ventura election showed is that what was offered to the voters by the R/D party was cr*p. The voters picked the best of a bad lot.

Now, voting for Mondale all those years ago is what showed the MN voters to have only a heart and no head.

16 posted on 10/24/2010 10:17:00 AM PDT by slowhandluke (It's hard to be cynical enough in this age.)
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To: hampdenkid
He bailed out the banks — in order to put them under the government thumb, of course.

Yes, but not for that reason. The government is under the thumb of the bankers, not the other way around.

It turns out that many of the securitized mortgages had been promised to more than one securitized pool. So, if Obama had bailed out the lendees, all the fraudulent MBS schemes would have come to light then when multiple claimants showed up at mortgage closure. The crime would have become apparent then instead of later, and some banksters might have gone to jail by now (one hopes).

17 posted on 10/24/2010 10:23:57 AM PDT by slowhandluke (It's hard to be cynical enough in this age.)
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To: slowhandluke

It turns out that many of the securitized mortgages had been promised to more than one securitized pool.”

Thanks for clearing that up.

I had wondered that for a very long time.

I wonder the same about ‘Gold Certificates”.

IF I could invest in gold—I would want the actual gold in my possession.

The same “Certificates’ can be sold to many, many,many people at the same time. Worse than a pyramid scheme.


18 posted on 10/24/2010 10:46:38 AM PDT by ridesthemiles
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To: Kaslin

Obama thinks picking up an unemployment check is far better than working.....that not paying your bills is far superior to being responsible for your debts....that excepting a mortgage that you have no way to repay it is just fine with this Marxist as he drives us all into a third world where the top dogs are in government.....he is so typical of the welfare race fostered on a free society by idiots who don’t understand anything but government handouts....Obama is a bloody Socialist/Marxist fool raised by the same.


19 posted on 10/24/2010 10:54:56 AM PDT by yoe ("N" is for NO for Progressives in government.)
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To: bmwcyle
The Democrat party has been doing this long before Obama.

Yup. This article timelines the entire fiasco going back to Carter:

http://www.americanthinker.com/printpage/?url=http://www.americanthinker.com/2008/10/what_really_happened_in_the_mo.html

20 posted on 10/24/2010 12:04:07 PM PDT by Cobra64
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