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"An appeaser is one who feeds a crocodile, hoping it will eat him last."
Sir Winston Churchill

9.26.2008

The Real Trouble with the Bailout

Who owns these homes?

The Democrats keep talking as though the people living in these homes own them, but they do not. Whomever holds the mortgage paper owns them, and will continue to own them until the mortgage is paid off.

I don't own my home---I have a mortgage. If I decide to stop paying my mortgage, the bank which holds the paper will kick me out and sell the house. As is their right---they own it until I pay it off.

Homes are no different than cars in this regard. When I had a car loan, the car's title was in the name of the bank which provided the loan. I didn't get the title until I paid the loan off.

Where will the $700 billion go? Who will be $700 billion richer at the end of this bailout?

The people who default on the loans will be.

They will be allowed to stay rent-free in homes which are not theirs. The money is intended to pay off banks to forestall foreclosure.

Who will come out behind?

Taxpayers who either do not have a mortgage or who pay their mortgage.

That is the heart of the matter.

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