Fannie Mae and Freddie Mac are going to do some more to protect poor, helpless Americans from the evils of “markets” and “contracts.” Their interventions have worked great so far!
The program will be offered to people who are at least 90 days behind on their payments, according to government officials. The goal will be to modify the mortgage – most likely by reducing the interest rate – so that the monthly loan payment is no higher than 38 percent of the borrower’s monthly income.
Watch as the federal government, with a wave of its hand, saves a few hundred thousand of us from ourselves. If only I’d known ahead of time that a mortgage contract is not really a contract, if enough people agree to bad ones. I could have gotten a $400,000 home! Magic!
Apparently living in a home you cannot afford is one of those new universal rights Congressional Democrats invented. Though Barack Obama did a bang-up job blaming the burst housing bubble on President Bush, the problem’s been brewing for decades. Who among current Congressmen is to blame? Barney Frank (D-MA) sits near the top of the list, but don’t worry! He’ll keep his committee powers and one of these days the government will figure out how to cram an inherently broken concept down the market’s throat:
Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that “these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis.” When the White House warned of “systemic risk for our financial system” unless the mortgage giants were curbed, Frank complained that the administration was more concerned about financial safety than about housing.
Once we get our current center-right president out of the White House and make way for the most liberal member of the Senate, maybe we’ll get past this backwards concept of anyone paying for anything without Washington’s help and supervision.