Housing Rescue or Highway Robbery

I have never thought it would come to this, but I actually agree with president Bush. He threatens to veto the new "housing rescue" bill, and I can't hope enough he will actually do it.

The House of Representatives must share Hillary Clinton's opinion on economists and other "elite" specialists: "who needs thinking if we can get votes". And what is the easiest way of getting votes if not giving one group of people money squeezed from another group?

In particular, two of the bill's provisions are particularly harmful. First the House want to spend $15 billion buying foreclosed houses. I don't know where to start on that, even. What business the government has buying houses? If I want invest my money in real estate, I will do it myself, thank you very much. I do not need a bunch of politicos in Washington telling me that my (tax) money is best spent speculating on foreclosed houses. And if it is not a speculation on real estate than what? Bailout for the morons bankers and investors who made bad decisions, gave money to unqualified borrowers and ended up holding empty houses in disrepair? If so, the only thing that should be said is "if you can't take the risk of investing, don't invest." And not, as the House would have it, "if you lose on your investments, and have some friends on the Hill, the taxpayers will make up your losses." This is nothing but a robbery.

The second brain-dead provision would have the federal government pay up to $300 billion for the shaky loans that unqualified borrowers cannot pay. Three hundred billion dollars! Of taxpayer money, channeled to those who got houses they couldn't afford. And where are they proposing to find this money? Raise taxes? That wouldn't do in an election year. Sell Alaska back to the Russians? Same here. Borrow more from China? I guess. Isn't it ironic how our leaders think they can get out of the mess caused by reckless borrowing by recklessly borrowing even more?

In effect, this bill would reward the greedy investors who take more risk than they can; the unscrupulous loan pushers giving money to whoever they could catch, regardless of qualification; the reckless home buyers getting loans on houses they could not really afford.

And those who wisely managed their money, did not live above their means, got modest houses or apartments, paid their tax bills and worked their behind off to be able to earn money for it all?

They get robbed blind.

You can express your opinion on this issue at Where I Stand.