Sunday, July 27, 2008

Brian Miller says it before I could, if not better than I would...

Here's a perfect Libertarian take on the massive wealth transfer that is the Freddie Mac and Fannie Mae bailout, from Last Free Voice (with hopefully the retroactive approval of the author, right Brian?):

Yuppie Welfare Bill Passed

Did you buy a house you couldn’t afford, with a suicidal no-down-payment negative amortization loan about 10x your annual income, and then borrow tens or hundreds of thousands of additional dollars against your fake “equity” to buy luxury cars, expensive vacations, large-screen TVs, designer furniture, gold watches and other bling?

Or are you a “flipper” who committed mortgage fraud, getting several government-backed “primary residence” loans to buy houses, put $15K of Home Depot stuff in them, and sell them — only to discover the housing bubble popped and you cannot make your mortgage payments on the second, third, or fifth house you own?

If so, you’re in luck! The bipartisan bozos in Washington have signed a $300 billion bailout to make the payments on your loans and save Fannie/Freddie to keep the suicide loans flowing, positioning it as a “housing market stabilization bill.” Bush is planning to sign it “quietly.”

Are you a saver, someone who didn’t buy an overpriced house with a suicide loan and are waiting for inflated housing prices driven up by government largesse and the speculative flipper-bubble to return to the market price?

You, then, are screwed. With every tax payment you make, you’ll be paying for your insane neighbors’ Rolexes, Hummers, Danish modern furniture, pools, LG 64 inch LCD televisions, and Disney holidays. And you’ll continue to be priced out of the housing market, thanks to big government largesse.

Here's the bad part: the government was already in charge of regulating this market, and neither Republicans nor Democrats did a damn thing other than whistle occasionally and say, "You know, this bubble can't last forever."

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