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Humpty Dumpty sat on the wall.
Humpty Dumpty had a great fall.
All the King’s men, and all the King’s horses,
could not put Humpty Dumpty together again.
Regeanomic Supply Side economics sat on us all.
Regeanomic Supply Side had a predictable great fall.
All of King George’s tax cuts, and all of his “free” market faith,
could not put this Regeanomic Supply Side economy back together again.
Let me see if I have this right:
- You borrowed $400,000 at 5.25% fixed rate for a 1st mortgage, a deal you and the bank agreed you were well able to execute.
- Someone you know borrowed $400,000 at a teaser rate of 4.50% for 2 years, adjusted after that, an adjustable rate mortgage (ARM) which they were pretty sure they could handle when the rate ratcheted up in the future.
- I borrowed $400,000 at a teaser rate of 4.50% for 2 years, adjusted after that, an adjustable rate mortgage (ARM) which I hoped and prayed I could refinance from my increased equity in an ever expanding housing market. The mortgage company winked at my fairy tale income and financial situation and plugged me into the house above my pay grade with no down payment.
Now Secretary of the Treasury Frank Paulson is proposing a triage system:
- You can afford your fixed rate mortgage, so you don’t qualify for any tax payer help funneled to you through the Federal Government.
- Those people you know can manage the increased payments as their ARM ratchets upward. No help needed there.
- But I get help to stay in my $800,000 house because I cannot handle the increased payments as my ARM ratchets ever skyward. I get to freeze my interest rate at the teaser rate because I got myself, with the help of my mortgage company, in way over my head.
I think I have that about right.
Looks good to me! Ynaanh Ynaaannh Na Boo Boo, My government screwed you.
This free market that Dubya champions – I like it. You place your bets, and you take your chances, except when the deck is stacked in my favor by that danged Federal Government.
Let’s hear it for an unbridled Laissez faire devil take the hindmost free market and to hell with BIG Government – except of course as a safety net for the economy (translated: The BIG Boys).
The problem here Mody is this. As always the Republotards were going to bail out the banks and the wealthy. They did it after the LTCM Asian currency mess. They bailed out the airlines after 9-11. Any time rich people are about lose money, the Republotards race to save the rich folks.
The problem this time was that it is quickly, and easily identifiable which poor folks, and which middle class families were getting hosed this time. They were the ones who were going to be homeless. 2 million foreclosed on and homeless families is death for the GOP for the lifetime of those families. So the govt comes to the rescue.
The larger issue is Paulson is still anti regulation.
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