"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Saturday, March 27, 2010

Diana Olick and FHA Commissioner David Stevens (blah blah blah)

Diana Olick interviews FHA Commissioner David Stevens and as usual, Diana knows her stuff and FHA continues to spew their recycled position and how this program is different. Wake up America, this has been and continues to be about the banks. The U.S. government offers to double payments to lenders who modify 2nd mortgages and the FHA proudly states they are using $14 billion of TARP funds. Let’s continue to recycle debt in lieu of paying it down.

David notes negative home equity due to price declines. Mr. FHA makes it sound like negative equity is solely due to price declines which are beyond the control of the homeowner. Grandpa says BUNK! What about those that financed 100% of the purchase price (a.k.a. no skin in the game)? What about those that financed 97% to 100% of the purchase price, pulled equity from the house during the "bubble", spent the money and are now upside down?

Why should our children and grandchildren be placed in fiscal harms way because of another generation’s irresponsibility and greed? Does anyone remember the days when our parents, grandparents and great grandparents made sacrifices in order to keep a roof over one's head and food on the table?

Remind me again the merits of leading by example!


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