“IT’S THE GOOD LIFE…FULL OF FUN, SEEMS TO BE THE IDEAL…”

3/28/10


Friday I discussed the Bush/Obama administration’s plan that would force banks, and you, through the Home Affordable Modification Plan (“HAMP”) and/or the FHA, to subsidize the lifestyles of those who bought far too much house for their incomes. On Friday, Mr. Obama announced that this program, designed to redistribute income not from the rich to the poor, but, rather from the responsible to the irresponsible, will be sweetened. In this latest addition to the plan, those who lose their jobs and find themselves on unemployment compensation would have their mortgage payments reduced to no more than 31% of their incomes for three to six months. After that, those who apparently had no idea that borrowing money involves an obligation to pay it back would qualify for a permanent reduction in their mortgage payments.

Leave aside for a moment the ramifications of such tinkering with the structures of mortgages by those in Washington, who clearly have everything figured out. will have for the availability of home loans for those who can actually afford their houses. Just consider for a moment what such a proposal would do: It would create a massive entitlement that says that people are entitled to live at a level dictated by the highest income they have ever achieved. The government will make sure that the lifestyle achievable at the highest level of one’s income, at least as far as housing goes, will be locked in…for life. Never will economic misfortune…unemployment, a reduction in business, a reduction in hours, even a decision to pursue a less lucrative career (as long as the last is punctuated by a brief period of unemployment) will ever have any real consequences for one’s lifestyle. And, you, dear taxpayer, will guarantee it.

O tempora, o mores!