One Step Closer

So now that the Obama admin has finished socializing health care (I am holding out on bashing it just yet, I will explain why in my next blog) it seems that they now feel that it is their part to step in and take over housing loans from private investors. The reason behind this is to offer home owners who are struggling, a loan which is protected from default, has lower payments and lower interest rates. Now this is great and all except for a couple things, first I am of the opinion that our Govt. can not take care of their own loans. We are currently at 12 trillion and climbing at a rate of 4.03 billion a day. Now if I remember correctly there is a debt limit that was voted into place at I believe, 9.6 trillion dollars. So instead of finding a way to stay below that limit our govt. voted to just raise it. Now I work at a bank and one of the policies that we have is, when someone is having a tough time paying their lines of credit we lower those lines of credit, then they slowly pay back what they owe till it is below their limit then they can begin borrowing again. Now that is just where I work but it sure seems like that is the right idea. So our govt. is acting as the blind leading the blind, while they are swamped in debt and not really looking for a way out, they offer others, who are drowning in debt too, a hand... That is not how it works.
My other problem with the govt. taking over loans on housing, is that is coming way to close to home (no pun intended). It is not the govt. job to own private sectors, in this bill that they are passing they are looking to help three to four million home owners. That is a whole lot of people who are essentially at the govt's. whim. Should the govt. suddenly decide that they want to house soldiers in civilians homes, I wonder who's door they would go knocking on first? These are just far fetched theories but they have happened under similar circumstances before. Say a president knows that he is going to lose the coming election, a simple brochure or television or radio ad implying that should he leave office those mortgages go down too. I have a feeling that a lot of people's votes would suddenly change in order to keep the security of housing above them. Sure the president does not have the power to do that, does he really need it? All it takes is the idea to put fear of having to find a home for one's family. This coupled with the control that is now on the health factor is too much power even for a democracy to have. Power corrupts most everyone.