Its hard to imagine a less-deserving group of victims: people who gambled during the housing bubble by purchasing homes with borrowed money that they knew or should have known they couldnt afford, but who are now able to stay in the homes they should have never bought because of what amounts to paperwork errors on the part of the nations big banks.
Everyone from the president, to officials at the Department of Housing and Urban Development, to at least some of 49 state attorneys general who cobbled together the pact, including New Yorks Eric Schneiderman took the all-too-familiar class-warfare route in selling the deal to the public and national media. Theyd like us to believe that the nations largest banks are finally paying for their bad behavior during the housing bubble and its aftermath, when millions of Americans either lost or were in jeopardy of losing their homes
Problem is, almost all of the logic behind the deal isnt logic, but a combination of half truths and outright lies. Even worse, the settlement will likely prolong the housing slump and set the stage for it to happen again.
Take the victims, who faced eviction from their homes because of the banks supposedly corrupt foreclosure practices. These home-owners didnt really own their homes; many, in fact, barely plunked down a downpayment for a mortgage.
By borrowing far more heavily than what they could afford, they were also gambling that housing would keep rising in value, defying basic rules of economics.
Now theyre being rewarded for their mistakes. Ironically, even the government officials who were part of the deal have privately conceded that, with few exceptions, more than 95 percent of the so-called victims werent victims at all; they faced imminent foreclosure because they were delinquent on their mortgage payments often for a year or more.
Read more: The president bails out housing ‘deadbeats’—Charles Gasparino - NYPOST.com
The Obama way, reward the deadbeats , and destroy the the rest......
Everyone from the president, to officials at the Department of Housing and Urban Development, to at least some of 49 state attorneys general who cobbled together the pact, including New Yorks Eric Schneiderman took the all-too-familiar class-warfare route in selling the deal to the public and national media. Theyd like us to believe that the nations largest banks are finally paying for their bad behavior during the housing bubble and its aftermath, when millions of Americans either lost or were in jeopardy of losing their homes
Problem is, almost all of the logic behind the deal isnt logic, but a combination of half truths and outright lies. Even worse, the settlement will likely prolong the housing slump and set the stage for it to happen again.
Take the victims, who faced eviction from their homes because of the banks supposedly corrupt foreclosure practices. These home-owners didnt really own their homes; many, in fact, barely plunked down a downpayment for a mortgage.
By borrowing far more heavily than what they could afford, they were also gambling that housing would keep rising in value, defying basic rules of economics.
Now theyre being rewarded for their mistakes. Ironically, even the government officials who were part of the deal have privately conceded that, with few exceptions, more than 95 percent of the so-called victims werent victims at all; they faced imminent foreclosure because they were delinquent on their mortgage payments often for a year or more.
Read more: The president bails out housing ‘deadbeats’—Charles Gasparino - NYPOST.com
The Obama way, reward the deadbeats , and destroy the the rest......
