Financing Failure

Posted on September 23, 2009
Filed Under Economy |

The government has now given Freddie Mac and Fannie Mae the green light to refinance homes at up to 125% of their value.  This policy is simply incredible.  The government, through these two quasi-governmental organizations, is re-creating the circumstances that have caused hundreds of thousands of Americans to walk away from their homes, mailing their house keys in to their mortgage companies. (The New Alchemy: Turning Red Ink into Shackles)

The bottom line is that the government is eagerly providing troubled mortgage loan holders an incentive to walk away from their loans with taxpayer cash in their pockets (Freddie and Fannie have received over $200 billion in taxpayer-provided bailout funds).  Once again, the government is plundering productive Americans to benefit parasitic Americans.  The end result can never be good.  Perhaps the following quotation from Adrian Rogers can help us understand the problem:

“What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it.”

God help us all, we have learned nothing over the last year.

Clayton

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