Wednesday, May 11, 2011
The Fed Gives the Rich a Long Needed Wake Up Call
During the Great Depression our federal government came up with the great idea that helping individuals buy a home would be a boost to the economy and put people back to work. It was a nice gesture and maybe had its place and time seventy years ago, but what happened to it all? Politicians got a hold of it, is what happened. What started out as “an affirmative obligation to facilitate the financing of affordable housing for low-income and moderate-income families” turned into backing mortgages for homes to the price of $729,750.
Really? I mean really in a Seth Myers SNL kind of really. Not even in California or New York is a $730k home for the “low-income and moderate income-families.” This is actually something that the Democrats and Republicans seem to finally agree upon. Yes, it’s true, even our elected officials who pander to the power brokers agree that you and me, tax payer should not be on the line for someone who wants to buy a house three times the national average.
Of course we will hear the complaints of poor rich home owner, there is no one to back my mortgage and the snowball will roll down hill to those of us who bought much much lower priced houses, but that’s a lot of snow and a pretty big hill.
It is nice to see someone say enough is enough, people have to take responsibility for what they buy and maybe just maybe, be Money Conscious; know what they can afford and buy what they can afford.Federal Retreat on Bigger Loans Rattles Housing