Obama May Make the Housing Problem Even Worse

Seriously, who the F$%K voted for this guy?

"Obama May Prohibit Home-Loan Foreclosures Without HAMP Review  The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program."  Bloomberg Link

Honestly, this will create such a backlog of non-paying mortgages and delay payment resolution that ultimately it will do nothing more than stimulate and incentivize "jingle mail,"  in which underwater, cash-strapped homeowners turn in their keys to the bank and simply walk away from the situation.  Distressed homes will pile up, creating a massive inventory problem and the decline in home values will accelerate.

Furthermore, it will create a massive delay in the disbursement/payment of ANY cash flow to banks holding the mortgages and to the investors in the mortgage trusts which helped finance the housing bubble.  Of course, this may also set up the direct subsidization of dead-beat homeowners, as banks bleeding dry from lack of cash flow from the defaulted mortgages will cry to Obama and Congress, who will then authorize the payment of Treasury/Taxpayer money directly to the banks until the defaulted mortgages are restructured.

The bottom line is that the Government should absolutely not be using Taxpayer money to subsidize the banks and distressed homeowners.  This is not a social or legal or national security issue.  This is a business problem that should be settled between the homeowners who took on more than they could pay and banks who were willing to lend to them.  Why should I be required to take money out of my pocket to help settle a bad business decision made by others?

It just gets worse by the day...