Housing Bailout/Fraud: Four states take need the lion’s share.
Posted by cann0nba11 on March 4, 2009
An interesting article presented by the University of Virginia sheds some light on the current housing market. Specifically, the study shows that “66 percent of potential housing value losses in 2008 and subsequent years may be in California, with another 21 percent in Florida, Nevada and Arizona, for a total of 87 percent of national declines.”
66% of the financial losses occurred in California. Two thirds of the failing mortgages that President Obama and others are demanding that taxpayers bail out are in California. The other three states make up another 21%. Here is another quote from this study:
“Potential losses in housing values from 2008 foreclosures in all 50 states — if values decline to 2000 levels — were less than one-third of the $350 billion provided to banks and insurance companies to cope with losses in mortgage-backed securities…”
“Damage to the balance sheets of large banks and AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments,” Lucy and Herlitz said.
In other words, the banks that are being bailed out lost billions thanks to risky investments and lack of management/oversight. The housing bailout is not nearly as expensive as we’ve been led to believe. We’ve been asked to support giving banks $700B yet they only need about $100B to cover their mortgage-backed risk?
For another perspective take a look at the following maps.
Do you see what I see? three of the four “mortgage crisis” states are blue, as in Democratic. The only reason Arizona is red is because that’s McCain’s state. He won his own state 54:45 by less than two million votes. If Romney had been the candidate I bet that AZ would have also gone blue.
My point? Democratic leadership sucks. Liberal policies focus more on making things fair, making everyone equal, instead of looking at legitimate financial issues and holding citizens accountable for their own actions, including their ability to pay for a mortgage. But, we don’t hear this in the press now, do we? Where is the hype over the fact that President Obama wants to give billions of dollars to in essence bail out four of our fifty states? ::crickets::
This is the sort of info you need to have top of mind when talking to liberals AND moderates that are less than energetic about learning the truth. We’ve got three years to educate five million voters so that conservative values have a fighting chance in 2012. Spread the word, be a loud talker.