What it means for most Americans, nothing good. I especially like the last paragraph where the negative effects are mentioned.
Who stands in the way of such an effort?
Investors in mortgages and mortgage-backed securities. If homeowners are going to pay less on their mortgages than originally planned, then somebody is going to lose money. These aren't just fat cats on Wall Street—although many such firms have invested in these securities—they're also pension funds for teachers, firemen, and police, as well as mutual funds whose clients include all sorts of individual investors. They probably even include homeowners who are facing the prospect of higher payments on their adjustable-rate mortgages.
Investors in mortgages and mortgage-backed securities. If homeowners are going to pay less on their mortgages than originally planned, then somebody is going to lose money. These aren't just fat cats on Wall Street—although many such firms have invested in these securities—they're also pension funds for teachers, firemen, and police, as well as mutual funds whose clients include all sorts of individual investors. They probably even include homeowners who are facing the prospect of higher payments on their adjustable-rate mortgages.
So what is the answer? Not a seven year freeze on interest rates as some Democrats are calling for, the answer is a return to Conservative Politics and less government interference with the economy. No matter how you slice it, the people who are facing losing their houses, chose their mortgage plan. If they were mislead or lied to when they got their mortgage, the mortgage company has Errors and Omissions insurance and the mortgage company should be held liable for any problems their associates caused. But that's not the case, the problem is that the people bought too much house. There is no accountability with this plan. Next the government will have to address the complaints of investors (like pension plans, mutual fund holders, etc) who will be negatively affected by this plan, and so on and so forth.
Next, remember that the economy is a cycle. Ups and downs are a simple fact of life and help to balance everything; such as money, people, resources, etc. Home prices are ridiculously high in some areas, that's an OPPORTUNITY for young people and people looking for a fresh start to relocate to an area (like Mineral County) and build a life for themselves and their family. Isn't that how this country started? The poor and/or ambitious moved across the pond to start a life for themselves and their families? What happens to our area when our tax dollars are used to subsidize the lives of our urban counterparts? Without subsidies for housing and transportation, our area would look much more attractive than it does. We have a lower cost of living, you can buy a home with some land for less than it costs to rent a 1 bedroom apartment on the fourth floor of a building in DC. Without subsidies and programs like the mortgage bailout how many people might move to the lower cost areas, start businesses, use services, pay taxes, and boost our numbers? In a democracy, numbers count for a lot.
Perhaps Mineral County and for that matter WV, should change the slogan to "Build Your Life" and focus on passing the message to people 25-40 years old who are starting to have kids and looking for a place to raise their kids that they can call home. You know a nice house on a 1/2 acre or so, white picket fence, dog and a chance to be a pillar of the community and have an active role in their kids lives. There are plenty of those people out there. One problem is the "Math" problem. When I graduated from college and moved to WV, I made less from a dollar point than most if not all of my classmates. Within a year I owned a 3 BR home on a corner lot, a 4 unit apartment building (for sale in Shinnston, WV if anyone is interested), two cars, and a boat. I was also a board member for Big Brothers/Big Sisters attending black tie "Make A Wish" dinners. When I compared my lifestyle to that of my Columbus and New York counterparts, I greatly preferred my lifestyle and had more toys and financial freedom than many of my friends. But I made $10,000-$20,000 per year less than they did. If I had compared job offers from a pure dollar point of view, I would have never come to WV, but I saw the opportunity.
I feel that WV's greatest asset is that people can build their lives here, and build a place that their family can call home. When I need to get my fix for Big City living, I drive 2 1/2 hours to DC. Halfway through the first night when people are walking on the sidewalk 10 feet away from where I am sleeping, I remember why I love living in WV so much...there's room to grow.
