- Personal Finance
Obama's Mortgage Relief Plan is a Miserable Failure
Your Tax Dollars Funneled to Private Bankers not to Home Owners
Once again the Obama Administration has proven their ineptitude for doing anything to curtail the mortgage crisis. Why would I single out Obama? Do I hate Obama? Hardly. But one must separate the performance of a persons actions from the person themselves and the proof is in the results of those actions.
It’s laughable how little help is filtering through to those in need while the Banks continue to rake in the cash, reward CEO’s for their incompetence, all the while the Government Spin machine lies to the people.
Associated Press Headline: “Housing Plan Reaches 1 in 5 Borrowers”. Really how could that possible be bad news?
Gee I don’t know maybe if the Headline read “80% of Homeowners Receive No Help From Obama Housing Plan”.
Would you be excited about a headline that read “1 in 5 People Getting H1N1 from Vaccination Shots”? How is an 80% failure rate a success? But it gets better… really it does. Of the 20% enrolled in the “Making Home Affordable” plan here is the real story:
Most of the borrowers enrolled so far have been signed up for preliminary trial modifications for up to five months. To make the change permanent, though, they must complete a big stack of paperwork and show they can make their payments on time. The government expects to release details in the coming weeks on permanent modifications.
That’s right Home Owners are doing nothing more than filling out paperwork that has not even been accepted. In short they are not really getting help, they are just going through the motions. The Obama plan to help Homeowners sinking under the weight of their mortgages is a miserable failure?
Why is the Obama Making Home Affordable Plan a Failure?
Because it has no teeth! While the Government is handing out the cash by the billions to the bankers, the bankers in return are doing nothing to take that cash and put it to work for the American People. But why are they not putting it to work? The answer is simple – because the Government handed them the money with no restrictions. You see the plain in ENTIRELY VOLUNTARY. The Banks were given billions and told please help people. There was no recourse to the banks for just sitting on the money. It’s business as usual.
These following quotes are again more laughable proof of how inept this plan was from the get go.
"We're seeing some early indications that the servicers haven't done enough to get all the documents in," Barr said.
Banks, for their part, have been slow to adapt to an unfamiliar climate of sinking home prices and rising unemployment.
It’s like giving a fat kid a bag of candy sending him to his room and telling them not to eat all the candy… be sure to share it later. The fat kid isn’t sharing.
Here is a Crazy Alternative to Giving Away Money to Bankers - Give it DIRECTLY to Home Owners
Hey the Government is giving away $50 Billion in this case, why not give directly to the people? Why do Bankers have to profit from every single bailout dollar? Well the answer is because that's how the rich manipulate the Government for their own benefit at the expense of the people who are responsible for their wealth - the American Tax Payer.
So lets hold a National Raffle that ALL Americans can have a shot at winning, except for Bankers! And how do you get your Raffle Ticket? You have a 1040 that shows you earned under $100,000 last year. Follow along now as this will make every bit as much sense as the Obama Housing Plan.
According to the Federal Governments 2008 Statistical Abstract compiled by the U.S. Census Bureau there were approximately 130 million Individual Tax Returns filed last year. We know that about 5% of the population earns over $100,000 a year meaning 15 million rich folk will be arbitrarily excluded from our imaginary raffle. Too bad for them they’ll have to sulk away at the Country Club. Yes unlike Obama I make the tough decisions stick! So we have 123.5 Million Raffle participants!
On to the fun. Lets take the $50 Billion set aside by the Obama Administration to help struggling Home Owners. And lets play with numbers just like the Government.
According to most sources there is about $14 Trillion in Mortgage Debt so our $50 Billion raffle won’t make much difference, but lets do it anyways. In an article on MSN Money they estimate the average amount owed on a mortgage is $69,227 Perfect we now have all the numbers we need for our Raffle.
- $50 Billion / $69,227 = 722,261
That means we can fully pay off 722,261 loans. Still with me? Now it’s time to find our lucky “Winners”!
- 123.5 Million Raffle Participants / 722,261 = .58% or 1 in 171 people win big!
But and it’s very important to remember this part because all of the above is just a slight of hand created to distract you from the real numbers just like the Government does. The entire scenario was just to provide some way to distribute the money to the people that need the money not to the GMF’s at the Banks. Rhymes with “Seedy Brother Truckers” for those of you who have not read my previous articles.
Under my plan 722,261 Americans are now free and clear from their Mortgages. Compare that to the 920,000 that have been “offered” loan modifications under the existing plan. Let me reiterate the obvious one more time. Under my Raffle Plan 722,261 Americans are now “Free and Clear” of their mortgage obligations. They do not own one dime. They are free to spend and stimulate the economy instead of paying interest to banks.
Under the Obama plan about the same amount of people have “Filled out Paperwork”! But all the money is sitting in Banks, and is not benefiting anyone but Bankers. What do you think? Sure my plan is “not fair” it’s pure chance, but is it less fair than spending $50 billion and getting nothing but shuffled paperwork? The Obama Plan is a brilliantly conceived guise to steer more money to the Wealthy Elite Bankers and does nothing to help people who are stuggeling.
The only reason that people keep embracing the White House Spin is because they have no understanding of the Money Supply or Economics in general.
Once again the root cause of ALL of our economic problems is the Federal Reserve Fractional Banking System. The Federal Reserve is NOT owned by the Government and is in fact owned by PRIVATE BANKERS. These Bankers dictate policy that creates the severe imbalances we are experiencing today. While they live in multi million dollar estates the average guy slaves away to try to keep up with the mortgage payment on the 3 Bedroom 2 Bath crap shack that is the reality of the average guy.
Abolish the Federal Reserve and give the power of the Economy back to the People. The system has failed and things are only going to get worse. Educate Yourself! And STOP BELIEVING THE LIES. Obama is a Wolf in Sheeps Clothing. And if you can’t see that then you get what you deserve. And for the Record the Republican alternative is not better!
The Federal Reserve must go. And you should be questioning, writing, and petitioning your Senators and Congressmen to make this happen. This is the single most important issue in your life. We do not need to defend a country that is Bankrupt, so there is no point in spending $800 Billion a year on National Defense when enormous numbers of Americans are living below the poverty line, do not have homes, and can not feed their Children.
This is not a liberal agenda. People can work when given opportunity, but the Federal Reserve Banking System destroys opportunity for the masses and puts all the power in the hands of the Wealthy Banking Elite.