FIRED UP - pt 4

And finally, the long-version, I posted my responses to some parts of his speech in Arizona unveiling the taxpayer-funded plan to remove the consequences for people who made bad decisions.

President Obama said in his speech in Mesa, Arizona, on February 18th that “if we act boldly and swiftly to arrest this downward spiral [in the housing market], then every American will benefit.” This is not true! I will not benefit in any way from this action. I have been renting, saving my money, waiting until I could buy a house on a 15-year note with 20% down and a solid emergency fund in place. Now, with this action, I will have to wait longer to be able to buy a house if the market is propped up. It is false that “every American will benefit.” President Obama is about telling people’s stories – he should ensure the stories of the responsible folks, while not as tear-jerkingly sad, receive equal attention.

Obama said “The plan I'm announcing focuses on rescuing families who've played by the rules and acted responsibly.” That’s not all true either. There are families like mine who have played by the rules and acted responsibly who will not be helped by the package – but again, I’m not asking for help. I’m asking that the federal government limit its role and let the market respond in its own time. The President should be asking those people who are not in bad positions to contribute to charities and help our neighbors, rather than assuming that role himself!

He also says “And by bringing down the foreclosure rate, it will help to shore up housing prices for everybody.” He should say “for everybody who currently owns a home.” I have acted responsibly and not taken out a home loan. So “shoring up housing prices” puts me at a disadvantage. I’m not asking the government to rescue me, but to stop intervening in the market.

Obama said “when families with these mortgages seek to modify a loan to avoid this fate, they often find themselves navigating a maze of rules and regulations, but they’re rarely finding answers. Some sub-prime lenders are willing to renegotiate; but many aren't. And your ability to restructure your loan depends on where you live, the company that owns or manages your loan, or even the agent who happens to answer the phone on the day that you call.” Let’s remind the public that that they signed up for those mortgages for the full term with all the risks and caveats! Nobody promised them the “right” to refinance some day. They promised to pay a debt and they shouldn’t be relieved of that obligation because of difficulty! Why do people think it’s the government’s job to ensure perceived “fairness” and the “right” to refinance? What other parts of their lives do they want the government to control? That’s not what America is about.

Obama said this, too: “Under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower's income. And this will enable as many as 3 to 4 million homeowners to modify the terms of their mortgages to avoid foreclosure.” Great – so because the homeowners out there didn’t have the common sense to get into mortgages they could afford, the government’s job is to help reduce the principal and interest so they can keep the home they can’t otherwise afford? NO! Avoiding foreclosure is great! But it’s not the government’s job to help people avoid foreclosure! If people didn’t have the good sense to get into mortgage situations they could afford this time, how will bailing them out help them in the future? We all know the school of hard knocks provides valuable instruction – better instruction than a free ride! If we remove the consequences of bad decisions, do we expect people to make better decisions in the future? Or do we expect them to beg the federal government to continue to remove painful consequences of other bad decisions and “bad luck” in the future?

Later, Obama said “Fourth, we will pursue a wide range of reforms designed to help families stay in their homes and avoid foreclosures.” That’s so nice- but remember, when people lose their homes to foreclosures, that doesn’t mean they’re homeless. That might well stimulate the Apartment-sector of our economy, right? The government does not exist to put a roof over your head. It exists to provide a safe country in which to go out and make something of yourself by hard work and determination! Staying in homes and avoiding foreclosure is great – but it’s not the government’s job!

Obama continued: “So taken together, the provisions of this plan will help us end this crisis and preserve for millions of families their stake in the American Dream.” First, there’s no guarantee it will end or shorten the crisis! Economic theorists believe this type of intervention extended the Great Depression! In addition, is it now the government’s job to preserve the American Dream of every American? Is it to end an economic crisis? It is not the government’s job to do these things! The Constitution doesn’t say the government is to ensure our stake in the American Dream! How far-reaching could the implications of this attitude be?

Finally: “And each of us, as individuals, have to take responsibility for their own actions. That means all of us have to learn to live within our means again and not assume assume that housing prices are going to go up 20, 30, 40 percent every year.” So does everyone get a free pass for bad behavior this time, at the expense of taxpayers, even the taxpayers who have saved and made better choices than others? How do you intend to get people to do any better at taking responsibility for their actions when you are attempting to remove the consequences of their lack of responsibility that got us into this mess? Remember, it’s not just unemployment and high medical bills that started this – it’s the bad decisions of lenders and borrowers! So to bail them out is ridiculous. It’s like he’s saying this: “Ok, I know you weren’t responsible before. But since I’m bailing you out (at the expense of our children and grandchildren), I’m going to trust you to do better in the future. Scouts honor. I’m sure you’ve learned your lesson that greed is bad, so go and do better.”
Please, Mr. President – get your fingers out of my pockets and quit trying to “save” people who have been irresponsible. Reform is not effected by charity! Ask Americans to be more generous, to give, to save. Tell them to bail each other out in their own way so you can preserve the rich heritage of our Constitution, while still earnestly trying to help Americans out! Don’t foolishly spend all this money and hope that it will cure the greed that got us into this mess!