The newest twist on government bailouts commenced officially today with relief for your irresponsible neighbor. You are now paying forhis greed and stupidity, and perhaps even the Hummer and Corvette he bought withhis home equity loan that he'll never re-pay. Yes, you arefooting the billfor hisvehicles as well. It's all pooled capital. Hepurchased near the top with no money down, got a $200k home equity ATM, bought all his toys, walked away from the house and both mortgages last year when prices plummeted. No recourse. Even worse, before walking away, he secured a mortgage on a newer home 2 blocks away that was a short sale. His credit score was still outstanding after all. He got in the newer house for 50% less than he paid for the 1 across the street from you. His credit is damaged now from the walkaway, but in 3 years that will disappear. And guess what, his new short sale purchase now qualifies for mortgage assistance under Team Obama's Plan to Save the Asshats.
Since the Mortgage Foreclosure Bailout Plan was announced Wednesday the outrage has been palpabe. For most taxpayers, the ongoing bank and auto bailouts, though more costly and extremely un-popular, do not resonate personally in their lives. But bailing out an irresponsible neighbor who purchased more house than he could afford is understood by everyone. Including our most maligned housing sub-group, renters, all of whom made an incredibly intelligent choice NOT to participate in the real estate bubble game, yet now are being asked to subsidize the mistakes of those who did. Considering that renters already get shafted by the unfair tax subsidies given to homeowners, this proposal accomplishes nothing further than reminding them how worthless they are in the eyes of Washington. Where is the change, Mr. Obama. Every day your administration feels more like the last 20 years of Bush-Clinton incest.