Desperate States Take Money from Distressed Homeowners
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  • “One thing is clear in all this. Despite good intentions, the government simply is not capable of helping distressed homeowners”

    I think the writer is over-drawing his conclusion: This approach isn’t working, therefore no approach will work.

  • Walter Sobchak

    They did the same thing with the cigaret damages. Why are you surprised.

  • Kris

    “vote against politicians who demagogue on the housing issue.”

    Vote against politicians who demagogue.
    Vote against politicians.
    Vote.

  • Jim.

    @Luke Lea-

    Government of every size is oversubscribed nowadays; there is no way they can keep all the promises they have made.

    It isn’t over-drawing anything to recognize that so many good intentions will naturally lead to some — many, most — of those intentions never being funded anywhere near their desired (or “necessary!”) levels.

    Government can’t do it. It has to stop making those promises. The rollback has to begin the sooner the better — now — or we won’t be able to recover.

  • Mogden

    The presumption of “good intentions” is quite an unjustified one.

  • Jacksonian Libertarian

    “Worse, it is a serious slight to homeowners: First they were ripped off by Wall Street; now they are being looted and pillaged by the states.”

    I take exception to the assumption that Wall Street, or any market rips anyone off. Markets only put buyers and sellers together in as an efficient a manner as possible. Nobody puts a gun to the head of the buyers and sellers and forces them to do anything, not like the Government does.

    It’s the Government that has been interfering in the markets and the economy that has been ripping everyone off. They are destroying the Housing market with regulations, the Community Reinvestment Act (CRA) forces banks to lend in zip codes where borrowers aren’t going to pay them back, or face huge fines. And they in turn use the quasi governmental Fannie Mae to lend in those zip codes in order to reduce their risk.

    The fact that the Government is taking the $25 Billion from foreclosed homeowners is just another example of Government Monopoly greed and abuse of power.

    The Government Monopoly cannot be fixed; the only useful solution is to limit the damage it does, by limiting its size and scope to only those functions that only the Government can perform. The Federal Government shouldn’t be involved in Housing, Education, Environmental Protection, or any of the other things it is doing but which aren’t mentioned in the Constitution anywhere, if the Constitution doesn’t specifically give the authority to the Federal Government then the 10th Amendment applies “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

  • Corlyss

    Shakedown

  • thibaud

    “Despite good intentions, the government simply is not capable of helping distressed homeowners.”

    Nonsense. The author is once again talking out of his hat: major Republican economists have put forth sensible government-driven schemes for working out underwater mortgages. Even Bush’s own top economist (now Romney’s adviser), Glenn Hubbard, has put forth intelligent proposals for _government intervention_ to help ease the pain, reduce the overhang of busted mortgages, and get the banks lending again.

    On top of this, we have the HAMP program for reducing or eliminating mortgage payments for those who’ve been unemployed. It’s up and running, it’s well-designed and is already having an impact.

    WRM really should do a bit more research and restrain his impulse to shoot from the hip.

  • Kris

    [email protected]: “Even Bush’s own top economist” is for government intervention? Even him?! Surely not! I did not expect that, given Bush’s small-government policies!

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