Thursday, May 21, 2009

No Surprise: Government's 'HOPE for Homeowners' Program Hasn't Worked

Let's see, we turn over a big problem to the federal government to solve and they mess it up even more. Why should anyone be surprised?

If you want to see how well the Federal Government works at solving economic problems, read this article from CNN: Renewed HOPE for Homeowners

Hope for Homeowners has a 1 in 400,000 success rate.

Government's ‘Hope for Homeowners’ foreclosure rescue plan, rolled out last year, was set to target 400,000 distress families in some stage of foreclosure. The program was geared to keep those families in their homes. When the program was rolled out, many complained that it didn't go far enough, only helping 400,000 families of the millions facing foreclosure. Now we find the bar for ‘too little’ was set way too high for the government to meet. Out of the 400,000 families targeted to be saved by this program only ONE family/home was actually saved. This is a program with massive overhead, a huge staff, and there success rate was 1 out of 400,000.

As if we needed yet ANOTHER example of government's ineptness, this gives you an idea of what results we can expect if the government gets involved in health care, or further involved in the financial markets or banking industry. The Federal Government has bankrupted soc. sec., medicare, etc., and has shown they are incapable of solving hardly any problem. Why would you want to turn MORE over to them? This would be like having a basketball team and your best shooter misses one jump shot, so you turn to the worst shooter on your team and tell him to start taking MORE shots. (More examples of Government's failure to solve problems.)

Letting the worst shooter (Fed. Gov.) take more shots.

If you think the bank industry and the financial markets were inefficient before, give it some time with new regulations and government involvement, and watch the cost to borrow, and the cost to invest, sky rocket. If you think health care costs are high now, just wait 'till they're "free."



Larry said...

My [late] grandfather used to say; "The government should stick to the two things its good at. Raising a military and raising taxes. Whenever it tries to do more, it always ends up worse than before they showed up."

Much is the same here. Problems with ANY industry and business structure has ups & downs and severe ones at times. Its all part of the evolution of business.

Anonymous said...


Your grandfather had the wit of Winston!


Larry said...

Since you brought up Winston Churchill, a great quote from him is:

"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

This quote surely seems to fit the present climates of the federal, state & local governments, doesn't it?