House approved bailout plan - Commentary

[Riick]

Here is the LINK

The U.S. House of Representatives has approved a housing bailout plan.

Yesterday, the men and women who ostensibly represent your interests passed a proposal sponsored
by Barney Frank, D-Mass., to rescue homeowners on the verge of default.

It goes something like this: Congress would allow the Federal Housing Administration to insure $300 billion in new loans
— but only on loans for which lenders have agreed to lower the principal. ​

In reverse, homeowners in an overpriced home about to default would receive lower monthly payments.
If the borrowers still default… Congress will pick up the tab.
Rather, you and your kids will. ​

[FONT=arial,helvetica,sans-serif]This is a little like Congress trying to get into the business of selling fire insurance ​

[FONT=arial,helvetica,sans-serif]to arsonists… with bad credit… whose homes are already on fire… and using your money to do it.[/FONT]​

[FONT=arial,helvetica,sans-serif]The bill still has to make it though the Senate. And President Bush has already promised to use his dusty veto on the thing. [/FONT]
[FONT=arial,helvetica,sans-serif]But just the fact that the House has enough dimwits to pass it ought to give you pause. [/FONT]​

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[Blueprint]

Plain and simple, it's crap that is only going to shoot our economy in the foot in the long run. Anyone concerned about the long term interests of our economy would agree. All this will do is keep the prices inflated for a short period of time.
What concerns me on this forum is that there may be some short term cash flow to be made by appraisers with this bailout. I do not know this for sure, but it sure seems reasonable.

I posted this link a few days ago:

http://appraisersforum.com/showthread.php?t=138562

yet it was not worthy of any response by other AF appraisers who read it.