Monday, September 22, 2008


The definition of insanity was defined by Einstein as doing the same thing repeatedly and expecting a different result each time.

Interest rates were too low. People bought houses they couldn't afford. Financial meltdown occurred.

So how does the Democratic party want to prevent this from happening again? By providing home "owners" with assistance in buying homes they can't afford. Not content with squandering $700 billion, Obama and his palls want another government hand out to home "owners" struggling to make the payments. Hey Barrack, newsflash old buddy, old pal. They can't make the payments because they should not be in the house to begin with. I can't make a payment on a Lear jet. That doesn't mean I should be handed a check to do so. But I also didn't buy a Lear jet.

See the difference? Every day this thing gets more and more fucked up. Yesterday I posted that the cost would be $2 trillion when all was said and done. I think my figure was too low.

And for anyone reading this who thinks, well, we need it because they alternative would be worse, ask yourself where this $2 trillion + will come from. At what point does the medicine end up being worse than the disease it's trying to cure?

Also think to yourself why is it that keeping home prices artifically inflated is good. Housing is the biggest cost for most people. So why in the world would the govt actively keep that cost inflated? Gas goes to $4 a gallon there are near riots on the street. Yet buying a shitbox 3 bedroom house for $500,000 is celebrated. It makes no sense.

Think of the economic benefits to the country if everyone's mortgage were 35% less every month. Just investing the difference over 30 years would take care of retirement needs. That could be a reality if the government just let the market equilibrium take place.

Instead the government is keeping in place policies that will mean slavery to a home lender for 30, or even 40 or 50 years. It's a hidden tax essentially that everyone is forced to pay. Except the money doesn't go to the government it goes to lenders. And while you're paying for monthly mortgage tax, you also get nailed a second time via inflation throughout the economy. That $500K house means people will demand higher pay to just barely afford the house. To give that higher pay, employers have to raise prices.

Take a look at Obama and Hillary and McCain's top lenders. Almost identical names. Lehman Brothers, Citigroup, Morgan, Chase, Goldman Sachs, Merrill Lynch, Bank of America. Same names, just different order and amounts. All three of them are in the pockets of politicians. And what do all of these names have in common? They lend money. And what better way to pay back those that give you money, than setting up conditions that will mean generations worth of indebted serfs?

It's all a con game folks. My advice to everyone is get a second citizenship. This thing isn't going to end well for you.

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