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The Obama administration, in a major shift on housing policy, is abandoning George W. Bush’s vision of creating an “ownership society’’ and instead plans to pump $4.25 billion of economic stimulus money into creating tens of thousands of federally subsidized rental units in American cities.
The idea is to pay for the construction of low-rise rental apartment buildings and town houses, as well as the purchase of foreclosed homes that can be refurbished and rented to low- and moderate-income families at affordable rates.
Analysts say the approach takes a wrecking ball to Bush’s heavy emphasis on encouraging homeownership as a way to create national wealth and provide upward mobility for low- and working-class families, especially minorities. Housing and Urban Development Secretary Shaun Donovan’s recalibration of federal housing policy, they said, shows that the Obama White House has acknowledged that not everyone can or should own a home.
In addition to an ideological shift, the move is a practical response to skyrocketing foreclosure rates, tight credit, and the economic crisis.
September 29, 2008
To Our Honorable Senators and Congressmen:
It is with great discontent that we express our thankfulness, at least at the moment, for the fact that the House of Representatives did not approve the TARP legislation, at least in its present form.
We, the hardworking middleclass Americans, are truly hurting, and some of us remember the words and stories of our grandparents who went through the Great Depression, and yes, we know that there must be something done to stabilize our economy.
The very first thing that we, the hardworking Americans want is for the Speaker of the House to leave her Democrat title in the bottom drawer of her desk, and not bring it into the chamber with her. As our next President, John McCain, said today, this is NOT the time for the blame game to be thrown about. It is NOW the moment for party politics to be set aside for the GREATER GOOD of the AMERICAN PUBLIC. Speaker Pelosi’s ignorance and arrogance came through in her speech today.
As a hard working middle class American, I am angered that the CEO’s of Wall Street are even a concern in the package. Their compensation packages SHOULD be controlled. For them to argue against that is ludicrous; if a Main Street business gets a loan from the Small Business Administration, the agreement contains compensation caps on senior management.
We are further angered over the concept that despite the fact that our property values have decreased, and we have suffered the losses of the equity in our homes, or in some cases, we owe more than the homes are worth, yet if we have met the challenges of struggling to make the ends meet, we are being called upon to carry the burden of the mortgage crisis that the Democrats created in their optimistic goal to get low income people into homes, into the American Dream of home ownership. The Secretary of the Treasury will have the power to modify the mortgages that it purchases to assist homeowners in staying in their homes. Many will have interest rates lower than the fixed rate we have based on good credit scores. Many will have principal balances lowered to make the payment affordable and to be inline with the fair market values, yet our principal balance will remain as is in order to make up for those that will be adjusted.
It is not that our mortgages should be modified; it is the principle that we, as hard working middle class Americans, are once again the ATM Machine!! We want to know that any bailout, if one is done at all, will not include anything OTHER THAN the the mortgage backed financial instruments. We want to make sure that this bailout will work based on the real economic analysis of EXPERTS–the one’s who told us that this was a bad plan!! We want written assurances that not ONE PENNY of any profit realized as this bailout matures goes to any earmark, any Democratic slush fund, any side fund other than to lower OUR NATIONAL DEBT. If the Treasury is going to modify “bad mortgages”, this bailout MUST provide similar benefits to those footing the bill for this bailout.
Do not misunderstand– we, the hard working middle class Americans— are not pleased AT ALL with ANY bailout arrangement. But if we must have this forced down our throats instead of allowing true capitalism take the market through its proper cycles, it must be to the benefit, not detriment, of ALL TAXPAYERS.
Hard working middle class
Please feel free to, once again, cut and paste this to fax and email to Congress