You just have to love the U.S. -- marketing runs the majority of the world's largest economy, and when subprime lenders began using low interest rates to push shoddy mortgages onto clueless homebuyers years back, millions jumped on the bandwagon. If you weren't flipping houses for a living, you were getting into a much larger home with the feeling that those larger payments and mortgage term resets were years off. We're here now, and foreclosures are up while homeowners are losing their collective shirts. Is it the housing equivalent of the Titanic sinking? Nah -- but that's what many of the media portray it to be.
But, in perfect "we can save this country" fashion, a few 'Crats on the Hill have decided that the U.S. needs a 'mortgage czar'
to protect us all from getting in over our heads with goofy mortgages. The prediction is that foreclosures will continue to escalate, so some lawmakers want $200 million to help those in over their heads make sure they don't lose their homes.
In what I consider to be one of the oddest analogies I've seen in a while, Sen. Chris Dodd stated that "This crisis is the equivalent of a slow-motion, 50-state Katrina, taking people's homes one by one, devastating their lives and destroying their communities." And, umm, who is to blame for that, may I ask? Unless Casper the friendly ghost was flying around the country signing mortgages, homeowners are to blame here. That is, unless all semblance of personal responsibility has left this country. Maybe it has for many of us. Sad.
It's estimated that nearly 1.7 million homes will enter into foreclosure this year and into 2008. Some Democrat senators suggested to lift the current investment limit for federal loan underwriters Fannie Mae and Freddie Mac to help them ease the burden on all those troubled home loans. Sounds like a plan (not), and even though not one single person has the corner on the smarts market, some homeowners apparently don't have the corner on anything intelligent when it comes to signing mortgage papers. Then again, some lawmakers always think they can bail out un
intelligence. Fat chance.