Once again, the Democrats controlling congress have put the screws to the poor in the United States. By passing into law the Housing and Economic Recovery Act of 2008 they have taken away one of the few avenues for poor and lower income families to acquire homes, requiring them to ‘give’ money to rich landlords instead of earning equity on a house that they would be buying themselves.
This act closes the door on non-profit organizations ‘gifting’ the down payment of a house to individuals who have good or fair credit but are unable to collect the required down payment necessary to buy a home. The FHA will no longer back any loans using this method, effectively shutting out any home loans to anyone who doesn’t have a credit rating of 720 or more. It is estimated that the housing market is going to boom over the next two months while people take advantage of the programs until they end with September, when afterwards home sales are expected to drop 50%.
And don’t let the Democrats fool you; this will do nothing to address the issues that are causing the high foreclosure rates and the failures of the lending institutions that we have seen over the past couple of years. This doesn’t address the instances of fraud, which was perpetrated by organizations that bought high-risk loans and then coupled them with low-risk loans to sell to unsuspecting investors. Nor will it address the use of adjustable rate mortgages by people who clearly did not have the income to handle the increase in mortgage payments that rising interest rates that caused the majority of foreclosures.
No, this blocks an avenue for all individuals who are scraping to get by, partly because of the oppressive taxes they have to pay on all goods that they purchase due to embedded taxation, and are unable to put together the down payment requirements that they will no longer be able to avoid paying.
For millions of people, the American Dream of owning their own home has now come to an end. And the people who will benefit? Why, the rich of course. Their investments will be better; the unwashed masses now being cleaned from the threat of home ownership and placed squarely back to the dependant class, needing someone to rent their living quarters from. And all the while the people who are being put into this position will be told by the ones guilty of this act that they are their only protectors.
If anyone were curious how someone who worked for the Dukakis campaign and has never voted Republican could have left the Democratic Party behind as it turned into a morass of the same fear mongering and hate filled politics that the Republican Party has been guilty of in the past, this shining example is a good place to start.
And this is where Obama misses the boat by saying that the people are clinging to god and their guns because the government isn’t taking care of them. The reality is that people don’t want the government taking care of them, they want the government to start minding its own business again and letting them live their lives without the protection of Big Brother dictating how they spend their hard earned money. But I never expected a Democrat to get that, after all they see nothing onerous with the use of force to ensure everyone is more equal and taken care of. It just doesn’t enter into their view of the world that the real enemy is the one with the legal use of power against them, not the business man who can only try to convince them to give him their money, not take it at gunpoint.