The Foreclosure Five
A National Crisis? Hardly. The Rest Of Us Are Paying For The Irresponsibility Of A Few States
by Alan Reynolds - February 21st, 2009 - New York Post
The beneficiaries of taxpayer charity will be highly concentrated in just five states - California, Nevada, Arizona, Florida and Michigan. That is not because the subsidized homeowners are poor (Californians with $700,000 mortgages are not poor), but because they took on too much debt, often by refinancing in risky ways to "cash out" thousands more than the original loan. Nearly all subprime loans were for refinancing, not buying a home.
Doesn't match with the concept that this is a nationwide crisis, does it?
Since it isn't, what makes these panic stricken liberal legislators so determined to tax the average American to stop a crisis that is localized to a few states? Simple. The huge banks that made these loans are their biggest contributors. Just check out Obama, Pelosi, Reid, Dodd, Rangel, Franks, etc and on and on. All are big recipients of Investment Bank contributions.
More than 30 states have had no drop in real estate prices. Only 4 states, all a part of The Foreclosure Five, had drops in double digits. Nevada has been a disaster, but then that is where more real estate speculation went on than any other state. Who is surprised that their prices plummeted after the artificial bubble drove them to huge heights. Even there, all you have to do is compare with prices from five years ago and home owners are ahead.
Why is Barack Obama bailing out Nevada? Simple. He needed a crisis and this home loan bubble in a few states bursting gave him one, if you don't look too close at reality.
Boosting the Obama team's selective mortgage subsidies, Mark Zandi of Moody's Economy.com recently told NBC, "either you can help your neighbor, and help them so they can stay in their home. Or don't help them, and they'll lose their home, and it will cost you money, because . . . your home will have just dropped in value." On the contrary, federal subsidies for over-indebted homeowners will not often involve helping "neighbors" but rather those who live thousands of miles away, mainly in just five states.
Barack Obama and the Democrats are lying, and they know they are lying. This whole mortgage crisis is a Democrat created mess that the free market was already fixing before the chicken little Democrats started screaming "crisis". Few Republicans beside the inarticulate retard George W. Bush bought the crisis idea. However they have now caused a crisis with their waste of taxpayer money. The bailout was planned for and is intended to protect Democrat contributors, along with create a socialist empire after Republicans are demonized. Democrats are lying to make their gullible supporters think they are concerned for them. It is a lie.