Foreclosure Prevention Act is Helping Everyone but the Homeowners

As I have written plenty of times in this blog, the politicians, still self-serving, are not actually going to do much for the homeowner in this foreclosure crisis as promised.

First of all, they can’t do anything. They cannot essentially bail-out America. However, they can look like they are doing something and at the same time help big business (read: campaign supporters). Politicians never cease to amaze me.

Let’s look at this latest bill entitled the Foreclosure Prevention Act (that you and I will help pay for).

Homebuilders, Ford and General Motors, airlines and manufacturers, and alternative energy producers will get billions of dollars in tax breaks if this bill becomes law.

They are basically asking tax payers to pay for the bad decisions made by corporate America all in the name of foreclosure relief. As a small business owner, I wish that I had the luxury of dialing up my friends in Washington every time I made a decision that caused me to lose money. Let these industries suffer the consequences of bad decisions like the rest of us are forced to do.

Here is my favorite part of it – the tax breaks are expected to cost 25 billion dollars through 2010. Don’t you worry one bit – economic growth (which any economic growth that we do get in the next few years will for the most part be manufactured by the Government) will cut that bill down to 6 billion. I guess that is intended to make taxpayers feel better. This is from the same set of politicians who spend 42 million to let you know that your tax rebate is coming so you can go out and buy that plasma TV in order to help produce economic growth.

Ok, so they have to be doing something for homeowners. Right? Don’t you worry – they are doing something about the foreclosure problem. They are giving $7,000 as a tax credit to anyone who buys a foreclosed home. They are also allocating $4 billion to communities to buy and fix up foreclosed homes.

I think that the foreclosure problem, past and present, is a little bigger than $4 billion. It is also great that they are giving the people who do have good credit some money in tax breaks to buy foreclosed homes. It seems to me that all this is doing is helping the banks who hold all of these foreclosed homes get this mess off of their books. They originated the bad loans and they should live with it.

What about Joe and Sue Smith who are about to lose their home? Oh I forgot – your check is in the mail so that you can buy that big screen plasma TV….oops – I forgot, you are about to lose your home.

Way to go Washington – I hope that the elections turn out OK for you. By the way, you might change the title from the Foreclosure Prevention Act to the Further Bank Bailout Bill and a little help for our friend in the name of Foreclosures Act.

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