Obama mortgage bailout

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RussB's picture
RussB
Status: Silver Member (Offline)
Joined: Dec 9 2008
Posts: 101
Obama mortgage bailout

Obama has announced his latest spree, out on the bailout binge. This time it's $275 billion. $75 billion of this is a direct wealth transfer from the taxpayers to householders. Literally robbing Peter to pay Paul. The other $200 billion is sort of a Son of TARP, except for mortgage lending. They'll double the original $200 billion Fannie and Freddie got in their first bailout, toward the vague goal of more mortgage debt. So I guess we can call this Mae and Mac Bailout II.

Here's Obama's goal for this, in his own words: "It'll shore up housing prices for everyone."

Right there is the fundamental depravity:

1. Housing prices are still inflated, still seeking their correct level. Obama is now openly saying and doing that he wants to reinflate the bubble.

2. What level of perversity does an economic system have to achieve where even alleged "progressives" want the price of a human necessity like housing to be as expensive as possible, where the stability of the system requires this?

3. A house is supposed to be a house, not a retirement fund, and absolutely not an investment vehicle.

4. The perception that it is a retirement fund is driven by, and in a vicious circle is then used to justify and further, the shredding of the safety net. This market feature, and Obama's attempt to aggravate it, constitute a further assault on those already priced out of this bloated market, already unable to afford decent housing. And now those very victims get the privilege of PAYING to subsidize their assailants.

This is Obama at his most regressive and reactionary yet.

As for the more general problem, it's clear. Here, as everywhere else, they have one and only one pseudo-idea:

Always, always, more lending, more debt, more bubbles.

Go into debt for $75 billion more to prop up unsustainable existing debt. Go into debt for $200 billion more to encourage more future debt. This is clinical insanity by now.

I'm convinced that the "leadership" has given up all hope of saving the situation. Their nerves have given in completely and irretrievably. Where they're still conscious they can only scream "more debt".

But more and more they're just zombie drunks, terminally binging on debt, not even thinking about it anymore. They know the end will come soon, but they have no thought of anything else. It's over.

Facing the prospect of having to unwind the fossil fuel/exponential debt civilization, they've become paralyzed, fey, and suicidal. They're like a junkie who is so terrified at the prospect of withdrawal that he'd rather keep shooting up until he ODs and dies.

I can't see any way any sane person, i.e. anyone not completely psychologically sealed within the insanity, could look at this Tower of Babel of debt, being built ever higher and ever more top-heavy by the day, and think it could reach whatever heaven the bingers are seeking. 

  

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: Obama mortgage bailout

3 cheers!  you're right on.

but this isn't just inept government (just as inept as Bush's bailout crap) binging on debt in a drunken state of stupidity.  it's a purposeful program that serves the banking/DC oligarchs.  taking money from us to pay them off. they want us to think it's just mistaken policy so we endlessly debate keynesianism vs monetarism vs neoclassical economics etc.  that's all a distraction from what's really happening...stealing from the serfs to continue propping up the oligarchy.

BrainShutdown's picture
BrainShutdown
Status: Member (Offline)
Joined: Feb 4 2009
Posts: 2
Re: Obama mortgage bailout

 First of all being this my first post, I want to sincerelly thank all the contributors of this site especially the fouder for his wonderful work. This is helping me a lot and I hope I can retribute in time. That being said...

I agree with you strabes.

And I don't think they've much of and option at this point. With all this global financial carnage going on right now in the markets, if they loose all those "bubbled" actives/guaranties, they loose leverage. But that's just me seeing this as a "last man standing thing" globally. The distraction really persists... if only the servs woke up at the same rate of debt creation...

 Best regards 

  

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: Obama mortgage bailout

yes!  let's create a bubble in serf alarm clocks to wake everybody up  Cool

welcome aboard brainshutdown 

pir8don's picture
pir8don
Status: Gold Member (Offline)
Joined: Sep 30 2008
Posts: 456
Re: Obama mortgage bailout
RussB wrote:

Facing the prospect of having to unwind the fossil fuel/exponential debt civilization, they've become paralyzed, fey, and suicidal. They're like a junkie who is so terrified at the prospect of withdrawal that he'd rather keep shooting up until he ODs and dies.

They aren't like a junkie they are junkies. We started with family and community and morals (self restraint and empathy). We let government take our morals and turn them into laws as our numbers rose. Then government abandoned the moral role and declared greed the only creed. Vacuum. Unchecked addictions.

Don   

___________________________________________

7 billion people can be wrong, very wrong

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
Re: Obama mortgage bailout

Welcome, Brainshutdown.

Either one of two things is going on with, as you call it, Fannie & Freddie II. EIther someone still thinks growth is even possible--never mind necessary--or they want to bankrput the exisiting system and replace it with something else. Call me paranoid, but crashes are no fun and despite the best of intentions I don't trust them to replace it with anything friendly.

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