Below is a copy of a note I posted on Facebook last night regarding President Obama’s Mortgage Relief Plan.

Well, I am sorry if this may bore you or something like that. But hey, I find it to be a serious problem, and as someone who supported Obama for President, I think it is quite fair to point out the flaws in his latest plan: a 75 billion dollar mortgage relief plan.

You see, one of the critical factors that damaged our economy to the point where it is at now was the sub-prime mortgage crisis. Basically, people couldn’t afford the mortgage payments for their houses anymore, and as such (after months of late or missed payments), were forced out of their homes and the banks foreclosed them for a value that was much less than what the houses were actually worse. Once again, this basically means that the banks lost money on each house they foreclosed, but ended up making more money than they were when the homeowner wasn’t paying the bills.

So, with the economy really looking shitty the past several months (in comparison to a few years ago when the ‘subprime mortgage crisis’ supposedly started), President Obama unveiled his new relief plan on Wednesday. At a cost of 75 billion dollars (which is more money than the richest person in the world has) taken from the 700 billion financial bailout passed last fall in Congress, the main goal of the relief plan is to keep homeowners who are facing foreclosure (by missing payments) or who owe more than their house is worth in their homes. Take into account this: On Tuesday, Obama signed into law another stimulus bill which totaled 787 billion dollars to help the economy. The total cost of these two bills? Almost 1.5 trillion dollars. And you know who has to end up paying for that? Us. No, not just your parents and family, but us, the next generation of American taxpayers. Do you expect the current generations to pay for these stimulus packages before it’s are turn to pay? I mean, the government is trying to help Americans save money, not pay more!

I am quoting an MSNBC article (which I will link to at the bottom) for the next few paragraphs.

Point 1: “Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth.”

Well, doesn’t that suck? Unfortunately, that is one of the consequences of capitalism. You see, once banks started to foreclose on homes, the overall supply of homes to purchase (at lower prices) rapidly increased. Thus, as everyone who understands the idea of ‘Supply and Demand’, the overall value of houses across the country decreased. As such, people who spent $500,000 on a house in 2002 may owe $350,000 on the house in 2009, but it turns out the house is only worth $320,000! You see, while it may be seem fair and just to help Americans who are losing their homes, it isn’t our fault that others failed to make their payments. So, why should we, in essence, PAY FOR OTHERS MORTGAGES WHEN WE HAVE OUR OWN TO WORRY ABOUT? Honestly, this is one of the stupidest things I have ever heard. If you want Americans to stay in their homes, how about you cut taxes? That way, people will have more money to pay for their own homes, whether they are having problems making payments or not. That way, we not only have to worry about paying a large amount of money to taxes, but we are also paying for our own house, and not someone else’s.

Point 2: “’This is necessary policy. It’s smart economics. And it’s just and fair…” Treasury Secretary Timothy Geithner told reporters.’”

Oh really, it’s just and fair huh?

““This plan will not save every home,” Obama said.”

So wait, let’s say I can’t pay my mortgage. If I don’t qualify for your program, you want me to get removed from my home and at the same time pay taxes to pay for someone else’s mortgage? Does anyone else besides me see this as flawed logic? Honestly, how stupid and crazy is that?

Point 3: “He issued a warning as well: “All of us must learn to live within our means again.” – President Obama

Well, if people had lived within their means to begin with, we wouldn’t be in this mess, now would we?

I’m sorry for ranting and raving. This just pissed me off.

MSNBC Article: http://www.msnbc.msn.com/id/29256639