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I Guess Republicans Do Have An Idea Other Than Tax Cuts
…and it is about the worst I’ve ever heard. Requiring banks to provide insanely low interest loans and then having them sell them to the government? That is partially what got us into this mess, except they want to raise the bar for conforming to $625k and also give a $15k tax credit. It is the bad housing policies of the past 8 years on steroids and is a misguided attempt to prop up asset values at unsustainable levels. Plus, I’m not sure why the banks even need to be involved…if the government would be “required” to buy the mortgages then shouldn’t they just cut out the middle man? This plan will just cause hundreds of billions of dollars to flow to banks that are taking no risk, and leave us with the bill.
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6 Responses to “I Guess Republicans Do Have An Idea Other Than Tax Cuts”
Ugh, I have to agree, a lousy idea and one which sounds a whole lot more like an attempt to gain political support against the Dem package than something based on expert economist analysis and recommendation.
Agree CS. Political pandering of the worst sort.
“This plan will just cause hundreds of billions of dollars to flow to banks that are taking no risk, and leave us with the bill.”
That's the idea, mikkel. Look at what they did to Medicare. Look at Iraq reconstruction. They're just being true to form.
Don't forget that many commercial properties were financed by monies similar to the FanieMay junk mortages. It wasn't just poor first time home buyers who were conned. The Gklazers of Tampa are paying 14% interest on their soccer team. Will we bailout the NFL next?
What's the deal, McConnell? Is the GOP now trying to out-vote-buy the Dems (political pandering — and See, We're Not the Meanies the Dems in Washington and in the Media Say We Are? Trying to help their bank buddies? Trying to help the construction and home goods industries? How long before the Dems seize on your hypocrisy as well as wonder aloud about “privatize profits, socialize losses”?
*** GOP HUA ***
“if the government would be 'required' to buy the mortgages then shouldn’t they just cut out the middle man?”
An idea floated recently on a far lefty radio talk show would have a federal “Bank of the United States” that would be this way — it would make not only mortgage loans but personal loans and lines of credit at deliberately lowered (subsidized) rates. That's what the GOP scratches at here.
As far as the GOP's stunt here, I doubt it would, say, convince Barney Frank or Christopher Dodd to change political parties. [grin]