Thursday, 5 August 2010

The Lose-Lose Game

The rumor today is that the administration is on the verge of ordering government-controlled lenders Fannie Mae and Freddie Mac...to simply forgive a portion of the mortgage debt owed.

How much? The numbers jump depending on who you talk to. Over $100 billion? It's a probable bet on this deal.

The prime issue currently is that one in five borrowers are into a fairly serious situation and will be pushed to continue their current pace of payment.

Consultation of congress? Well...it's suggested that it may not happen.

The neat thing is that this really makes the administration look great for a bunch of folks heavily into loans....right before the November elections.

Who adsorbs the real loss of revenue or tax money now? Well...you and me. Smart guys who refused to pay $400k for a $250k house will pay. Smart guys who bought a $130k house ten years ago and it's still worth $130k today will pay. Guys who never bought property in their life but pay tax revenue....will pay. Dopey folks who bought a double-wide for $70k will pay.

The dopey guys in California, Florida and Arizona will be the winners of this deal primarily.

It's an interesting rumor. If it happens....we might all sit there and have a laugh for thirty minutes. A bunch of dimwitted guys got heavily into debt over housing and the government gave them a reprieve of sorts. The funny thing...is that the $100 billion or more involved...gets tossed onto the nation's debt. So as we proceed into the future with an economy still sliding...we will simply add onto the overall debt.

Oh, and the positive spin on our economy for the past two weeks? It's bogus now...and you can pretty much forget about things improving this year or next.

It's Unlimited

I sat today and read the flashing news for Californians that Prop Eight...the proposition passed in the state there to ban gay marriages...was ruled unconstitutional. It's a fascinating ruling. If you didn't catch the fact...the judge involved...is openly gay and admits it. So the shock value is virtually zero in this case.

On top of that, was the emphasis of the entire ruling....the 14th Amendment has this clause that says everyone's equal. Everyone has the same rights as everyone else. You can't out-right anyone...male or female, under this deal. It's simple in utilizing the clause...but it amazes me that the Justice could write up 136 pages on this explanation here. It's too bad we can match up the Pelosi crew and the Judges...and start having 2,700 page rulings that would be unreadable.

I'm leaning forward to watch the Supremes eventually take this case and render some 300-odd page verdict on this matter. I doubt that they really want the case...seeing it more as a state matter than a national matter.

At some point, enough interpretation will exist to allow marriage to be about as creative as you want. If you wanted three wives...you're find a state to allow it. If you wanted a marriage between yourself and a ghost...it'll happen. If you wanted a marriage a day for 365 days...it'll be possible somewhere.

I've reached this point where I'd like to go back to the 1700's version of marriage...where you just do your thing and it's not recognized or supported by the local, state, or national government. You find some person or religious figure...and just "do it". And if you owned property or wanted to share out your wealth, then you do a civil union pact to make it legal (but this would be open to cousins sharing a house, two friends buying a business, or a grandfather sharing out the farm to the granddaughter as well).