Free Money for Everbody

Stub your toe? Break a fingernail? Borrow more money than you should have? Obama’s administration will make it right for you, aided and abetted by a Congress rushing to save the ‘middle’ class. Let’s fully understand what Obama and Biden are promising: As a homeowner, should you fail to pay your property taxes, the federal government will pay them for you. If you fail to make your monthly mortgage payments, the federal government will either, a) make those payments for you, or; b) allow you to renegotiate the principal, or; c) walk away from your obligation with no consequences. If this should come to pass, or if anything near this should make it out of a Congressional committee, the world financial markets can expect another series of catastrophic financial shocks courtesy of the good ole US of A.

These kind of campaign promises, if ever realized, would literally vaporize the value of all residential real estate in the country. If any mortgage, even those issued or guaranteed by the federal government, can be ‘renegotiated’ at any time during its term, then the value of that property is also subject to change. Therefore, a deadbeat can stop paying off his/her mortgage whenever they like and then renegotiate the terms and principal. This would also have the effect of lowering the value of the property attached by that mortgage. The lender would have no recourse. In order to recoup the loss, the lender, even if it’s the government, would need to raise interest rates for those who do pay, and add exhorbitant fees to the borrowng process. The deadbeat’s neighbors would feel the pain, as well. Their homes could be devalued as well, adding instability and volatility to home prices. That’s the last thing this battered economy needs.

But logic and reality don’t prevent the Obama campaign from promising what amounts to free money for those who don’t take responsibility for themselves or simply want something for nothing. Imagine the thousands of parasites who’ll rush to buy a home with the expressed intent of defaulting on the mortgage so that they can get a 30-40% reduction in the principal just for the asking. What kind of unimaginable consequences would that spawn? It’s obvious that Obama courts not working Americans but rather those who benefit from this kind giveaway and who outnumber productive citizens at the voting booth. It sets a dangerous tone that has parasites voting themselves every kind of perk at the expense of those who work and attempt to live within their means. And those parasites inhabit every part of the socio-economic spectrum: Just ask Hollywood and TV producers about their spanking brand-new $200 million in tax credits, courtesy of the banking bailout bill.

But then, Obama and Biden promise that only the ‘rich’ will pay. And when that 5% of the population is eventually beggared by the demands of the other 95%, what then, Mr. Obama? To whom do we turn to feed the beast once the wealthy are decimated or leave this country? How will business grow, how will capital be formed? Once the wealthy disappear, there will be only two sources of capital - government and union pension funds. The transition to socialism will be complete.