So let me get this right. Congressman Barney Frank is now proposing to give loans to unemployed homeowners who are having trouble keeping up with mortgage payments.
Really? The solution to helping people who can’t afford their home loans because they don’t have jobs is to give them another loan, pushing them further into debt? Maybe I’m missing something here but isn’t this how we got in trouble in the first place, giving loans to people that can’t afford them.
Frank’s proposal would also spend $1 billion to build and preserve affordable housing, $1.5 billion to redevelop foreclosed and abandoned homes, and $2 billion to protect tenants in apartment buildings whose owners can’t pay the mortgage.
He calls the $6.5 billion package, “TARP for Main Street,’’ a reference to the government’s Troubled Assets Relief Program. .
Frank wants to pay for his plan by using dividends that the government is supposed to be getting from companies that received the $700 billion from the Troubled Assets Relief Program (TARP). Hmmm. Weren’t those dividends supposed to offset some of the losses from that bailout? When will he address the big elephant in the room….. The Fedreral Defiecit.
Old saying: If you don’t buy a house now, you’re going to be priced out forever…
New saying: If you don’t buy a house now, you’re going to be paying for someone else’s forever…..