The Wall Street Journal reports on the Obama regime’s plans to make taxpayers bail out as many as 1,500,000 “homeowners” whose mortgages are for more than the houses are worth.
Gee, what a deal. Sign up for a $300,000 home – that would only bring $100,000 at a foreclosure sale now. Refinance it – and the taxpayers pick up the $200,000 difference.
Supposing that the average home under Obama’s program is only $50,000 under water, that program will “only” cost $75 billion to implement. And assuming that only one mortgage holder in five defaults, that is 300,000 mortgages at, hmm, looks like $196,300 average remaining balance. For another $58.8 billion – and grand total in the neighborhood of $130 billion.
I don’t know what you would call that – but what I call it is “The Cloward-Piven Strategy.” What is that? That is a “strategy” to “hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.
You can read all about it at the Discover the Networks site that is both linked and quoted in the previous paragraph.
And this is another of Obama’s – and Rahm Emanuel’s – schemes that our great grandchildren will pay for. If we do not stop it as soon as Congress is in session.