They Don’t *Get* The Fact that *THEY* Are The Fundamental Problem

I can’t let this story go by without a brief comment. The headline reads: “Washington Policy Makers Resist Calls for a Big Fix in Foreclosure Crisis” but it doesn’t mention the extent to which some other “Big Fix” from the Government was at the center of these newer problems to begin with.

Today’s episode of Obama’s Unintended Consequences™ begins with news that there is a foreclosure crisis, and that he wants a freeze on them…presumably so his economic plan can have more time to settle in (and save everyone’s lives and children and jobs and mortgages and businesses and so on ad nauseum). The problem, at its core, is that people can not afford to PAY their mortgage payments thus putting them at increased risk of their mortgage lender calling in the note.

Well, folks, that’s how loans work-you’re given money on your assurance you’ll pay it back. You make that assurance in good faith based, in part, on your knowledge that you earn enough money to meet that commitment. If something happens to that income, you risk the reality of being made to give back the collateral you put up to begin with; in today’s story that collateral would be your house.

We have watched the Obama Administration take over so many elements of the private sector, take over or regulate so much control over its form and function, that we’ve lost sight of the problems…and the down-line chain reactions – that have resulted.

Unemployment ran up and stayed above 9.5% and, subsequently, unemployment benefits shot up from 13 weeks to 99 weeks because Federal economic policies and regulations have become too prohibitive for businesses to consider expanding their workforces. The number of food stamp recipients is the highest it has ever been, the number of insured is close to the lowest ever…and so it goes.

Now, with the Federal Government having helped CAUSE people to lose their jobs, and apologizing for that by paying them a substandard wage vis unemployment benefits…while helping drive up the cost of medical care and driven down the amount of money people can use to feed themselves (apologizing for THAT by handing out less than can be adequately used to feed a family already down on their luck)…why is anyone in Obama’s Administration confused by (or worried about) the numbers of families that can no longer afford to make their mortgage payments?

And just exactly WHAT does anyone think will happen after Obama MAKES banks hold on to bad loan notes?

Anyone?