President Barack Obama today unveiled his massive plan to bail out homeowners who are in default on their mortgage. The proposal calls for taxpayer dollars to be used to buy down interest rates or make payments for homeowners who bought houses costing up to seven hundred thousand dollars. The government has already bought interest rates for many borrowers down to two percent, and negotiated the extenstion of mortage terms out to forty years.
With nine percent of mortgages currently in default, one wonders about the political viability of asking the ninty-one percent of home owners who bought houses they could afford to not only continue paying their own mortgage, but to have their income confiscated to pay for someone living in a house costing the better part of a million dollars.
Treasury Secretary Tim Geithner, tax cheat and architect of Obama's mortgage buyout, was questioned by reporters about the wisdom of angering the nine out of ten homeowners currently not in default in order to help the tenth. He answered, "We feel that when the President's health care plan, spending initiatives, bank nationalization scheme, and tax increase package takes effect, we'll be on the side of the majority."
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