But then I remembered who was writing what I was reading.
Last night on the front page of the uber-leftist FireDogLake blog, was a post about Congresswoman Laura Richardson, the Representative who has been denying that she abandoned a property she owned and let it slide into foreclosure and stopped paying the utilities and property taxes on it.
Unlike that last link to Mrs. Malkin’s site, the loonies at FDL were martyring Richardson
Hello, Congress? The people, you know — the ones you were elected to represent — are hurting out here. A lot of people have lost their houses already. Many, many more are on the edge.
If *this* is what it takes to get your attention, so be it.
I’ve been reading FDL for a while now. Long enough to discover the truly sick part of their scheme to “fix the mortgage crisisâ€: Having the government buy up loans with our tax dollars.
So here’s what a liberal government does. It provides real market clearing to the market by offering to buy mortgages, only in blocks, at a discount. Not to lend, as the Fed has been, but buy. It sets the price at approximately what the land would have been worth in 2001. It converts each and every mortgage it buys into a simple fixed rate mortgage with a nominal value for the property equal to what it bought the mortgage for plus ten percent and it lets the property owner choose a 10, 20, 30 or 50 year term for the mortgage as long as the monthly payments are no more than 1/3 of the owner’s income. If you can’t afford the payment on 1/3rd of your household income the duration of your mortgage gets kicked up until you can. No other loans can be taken against the house until the mortgage is paid off and no lump payments are allowed so that finance companies can’t come in later and offer to pay of mortgages so folks can do foolish things.
Not the worst idea I’ve heard, except for the fact that nowhere in the Constitution does it authorize the government to be a direct mortgaging house.
By the way, there are no provisions in this plan for if the borrower defaults. Would a government stupid enough to become a mortgage lender let the person/people live there free of charge, or would it send in the ninjas in the most dramatic eviction in modern times?
No one knows. Least of all the numbnuts who thought this plan up, since liberals like to believe that once government steps in to a problem that everything becomes puppy smiles and daisies.