Say that fast three times, I dare you!
In the lead of the beseechers were Senators Boxer and Isakson, who actually did introduce a bill a while back that had some pretty good ideas.
In it was the idea of removing loan to value limits, the reduction of principle amounts owed and the removal of second mortgage holders.
These things were proposed as administrative changes that would not require congressional approval. What this means is that any sitting president would have the ability to dictate lending policy.
Doesn’t sound bad on the surface, does it? But look a little deeper. What this really means is that any sitting president will have no limitation on how much debt can be absorbed by Fannie / Freddie.
This is the exact same practice (discarding sound financial principles) that led to the current state of affairs.
This is scary, particularly when we about to have our national credit rating reduced again, the Fed is talking about another bailout and we are now beginning to see the rise of inflation.
I completely understand how you might be tempted to like this plan. If you are a real estate agent or MLO, you might be hanging on by a thread right now.
But remember the following:
“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.” – Vladimir Lenin
“The best way to destroy the capitalist system is to debauch the currency.” – Vladimir Lenin
Hey, I didn’t say it. I am only calling it like I see it. Funny, how extreme left wingers often refer to variations on quotes from communists and extreme socialists.
Two members of the Obama Administration, Ron Bloom and Anita Dunn, famously quoted Mao:
“Political power grows out of the barrel of a gun”
Am I being paranoid here? Honestly I don’t know. I would like to think I am but I always come back to one the least observed quotes from an elected, dictator-madman:
“It is to the great benefit of governments that people do not think” – Adolph Hitler
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Here’s the original article…Senators press for mass mortgage refi plan