Making grasshoppers out of ants
In case you have lost track, the housing bill is the latest in the bailout lineup that rewards bad behavior. It offers people who exhibited poor judgment and bought way too much house for their income a way to refinance and reduce (cram-down) their principle.When the 92% of homeowners who made sacrifices to get where they are today and pay their mortgages on time learn about this bailout, they are outraged. I know I was. (We lived in a tiny Polish flat for 9 years, sharing the bathroom with the tenant in the back, so that we could live within our means and save for a real house of our own.)
So why is our government rewarding bad behavior? I think it is to make grasshoppers out of ants. Translate that: they are transforming people who were the workers into people who are now the takers and dependent on the government. These takers (grasshoppers) will be more apt to vote for their current legislators, who gave them their bailout. It also defeats the hard working citizens (ants) of our nation, who worked hard at their jobs in order to enjoy the fruits of their labor: a comfortable home and lifestyle.Grasshopperification kills capitalism and promotes socialism.
Mortgage plan Is Rewarding Bad Behavior:
President Obama's massive mortgage-bailout plan is nothing more than a thinly disguised entitlement program that redistributes income from the responsible 92% of homeowning mortgage-holders who pay their bills on time to the irresponsible defaulters who bought more than they could ever afford. This is Obama's spread-the-wealth program in action.
Team Obama is rewarding bad behavior. It is enlarging moral hazard. It is expanding its welfarist approach to economic policy. And with a huge expansion of government-owned zombie lenders Fannie Mae and Freddie Mac, Team Obama is taking a giant step toward nationalizing the mortgage market.
Reporting from the Chicago commodity pits, my CNBC colleague Rick Santelli unleashed a torrent of criticism over this scheme.
Santelli said: "Government is promoting bad behavior. . . . Do we really want to subsidize the losers' mortgages? This is America! How many of you people want to pay for your neighbor's mortgage? President Obama, are you listening? How about we all stop paying our mortgages! It's a moral hazard.
Dukes of Moral Hazard
All this took place on the air to the cheers of traders. Santelli called for a new tea party in support of capitalism. He's right.
...But by investing in failure, the Administration will also prolong the housing downturn and make financing a home purchase more difficult for future borrowers.
What are we workers going to do when the grasshoppers outnumber us ants?
The ants are starting to make noises like they are fighting back, uniting for The Chicago and Wisconsin Tea Parties. (Wisconsin Tea Party Tax Rally: April 15th, email@example.com )
Reorganizing takes time. In the meantime, President Obama is trying to get as many people dependent or beholding to the government as possible. Is this the way to run a country? No, but this is the way to ruin a country!
Practically Speaking, Fairly Conservative, Betterbrookfield, CNS News, Jay Weber, Mark Levin, Vicki McKenna Jay Weber, The Right View Wisconsin, The Heritage Foundation