Home mortgage bailout FAIL

Our dear comrade leader’s $75B home mortgage bailout program is yet another massive government FAIL according to Neil Barofsky, the Inspector General of TARP. (story here from TheHill.com) Are you surprised?

Neil Barofsky, the special inspector general over the $700 billion financial rescue package, slammed the administration’s housing program for having ill-defined metrics and for helping far fewer homeowners than originally proposed.

“The program risks helping few, and for the rest, merely spreading out the foreclosure crisis,” Barofsky said in a report. The program encourages companies to modify the terms of home loans so that borrowers can attempt to avoid foreclosure. Mounting foreclosures continue to weigh heavily on a weak housing market, which began declining more than three years ago.

“Ill-defined metrics” is government speak for “the planning and implementation of this program sucks.” With only 8% of his administration having actual working business experience, is it any wonder that their capability to solve real world problems is virtually nil? These people are “thinkers,” not doers. And because their “solutions” are based on flawed theory and economic unreality, their policies are no better than throwing wads of cash at a problem and hoping that something sticks. Apparently the administration has other “metrics” by which they measure success:

Herbert Allison, assistant Treasury secretary, defended the program in a letter, and said the program’s success, “should be measured by how many eligible homeowners are able to avoid the pain and stigma of foreclosure by reducing their mortgage payments to affordable levels while either remaining in their homes or transitioning with dignity to more suitable housing.”

The housing program has come under heavy criticism from Democrats and Republicans on Capitol Hill, who say it has done too little to reduce foreclosures.

“Transitioning with dignity?” Ugh. It was government policy that created this mess in the first place and now we’re paying for it. Perhaps our economy will “transition with dignity” into the toilet…

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One Response to “Home mortgage bailout FAIL”

  1. […] mortgage program FAIL The saga of the regime’s Home Mortgage Bailout FAIL continues. (previous post here) The $75B program, a topic of scorn from the TARP Inspector General, was intended to bail out home […]

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