Friday, April 13, 2007

Democrats Want To Spend $120 BILLION To Bail Out Risky Subprime Mortgages About To Default

On the bright side if you are a complete idiot, and buy a house you can't afford, the American taxpayer will help you out thanks to Democrats.

CNN Money:

Want to pick up the check for every homeowner who got saddled with a risky mortgage? It's a big one - on the order of $120 billion.

Lawmakers and consumer groups in recent weeks have been calling for assistance for those at risk of defaulting on their mortgage.

On Wednesday, Congressional Democrats led by Charles Schumer (D-N.Y.) advocated steering hundreds of millions of dollars into nonprofits to help the growing number of homeowners who are having trouble paying their mortgage.

Ah, Schumer & NY politics are afoot. I wonder what economics experts think about the Democrat's plan?

But economists and industry experts say the cost of a bailout would be significantly more than that.

Christopher Cagan, director of research at First American CoreLogic, says rising mortgage payments on adjustable rate loans will force 1.1 million homeowners into foreclosure over the next 6 years. He estimates the cost of paying off the debt for those borrowers would be $120 billion.

So Schumer wanted hundreds of millions of dollars to bail out idiots, but this Cagan character wants the $120 billion. Not to worry though:

A spokesperson for Sen. Schumer says the senator is not suggesting the government should pay off borrowers' loans in full.

Oh I feel much better now. The taxpayer will be out billions of dollars, but at least we won't have to pay the full mortgage for these people. So who is going to pick up the rest of the tab?

Schumer hasn't finalized a plan, and that Schumer has said banks and lenders should foot part of the bill.

There it is! The big bad banks forced the poor little feeble-minded idiots into purchasing more house than they could afford, and therefore they should have to pay part of the bill. So the taxpayer and the banks will pay a hefty portion of the bill for these "homeowners." I wonder how much they will have to pay, and since I'm paying their bills for them ... exactly how much of their house to I own? I'd like to rent it back to them for a reasonable monthly rental fee ... with interest, of course.

While your at it ... make sure you read about these immigrants who only made $15,000 a year buying a $720,000 house. Guess what? They couldn't make the payments. Guess what else? They don't speak English, and weren't able to read the contracts. Guess what else again? YOU might be bailing them out. Make sure you read the story. It's got everything you could possibly want ... La Raza, the NAACP, immigration, money, swinging ... it's got it all!


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