Saturday, December 08, 2007

One More House Note

Bush has the fix in for the housing bailout. Will the Sandmich be a beneficiary of this subsidation of stupidity? Not hardly, I got a fixed rate on, get this, a house I could actually afford! Revolutionary! Now if you were a dolt who got an ARM on a house you couldn't afford when the ADJUSTABLE rate mortgage adjusts, there is now an agreement to allow you to keep your nice digs and sweet loan rate, from WSJ Political Diary:
[Government subsidy] #1,777 was born this week with a program to bail out subprime mortgage borrowers. Treasury Secretary Hank Paulson says the program is "voluntary" without a hint of taxpayer subsidy. Wrong: The taxpayer subsidy is simply laundered through a provision that would allow states to finance mortgage bailouts by selling tax-free bonds.

What's striking about Bush-style Big Government is its selectivity. Similar spasms dumped billions on families who lost loved ones on 9/11 or whose homes were damaged in Katrina. But try getting a handout if your family tragedy wasn't 9/11-related, your home was destroyed by a different storm or your underwater mortgage wasn't taken out between the magical dates of Jan. 1, 2005, and July 31, 2007.

The only rhyme or reason to Bush generosity seems to be the amount of cable news coverage a given "need" gets. If the precedent holds, look for an endless conveyor of ad hoc bailouts in the future as interested groups realize it only requires making the threshold level of noise.
The only thing that reassures me is that the Dems wanted to give away the farm and force banks to do 30 year fixed rate loans with a 3% interest rate and a voluntary payback policy. It's a race to the bottom of the barrel.

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