If you heard the splendorous speech last night, then you heard Obama throw a bone. He mentioned that he is proposing that homeowners that got caught in the financial squeeze, will be able to re-finance their home at the current low interest rates. This notion offered by Obama is just idiotic. It is plain stupid. He and his economic advisors must be living on another planet. I suspect they never asked anyone if this proposal made sense? Or did they even care? It must have sounded good at speech practice. It was probably a footnote recklessly thrown into the melange as a bone for some friendly dog.
Why was it stupid? It sounded pretty good! Because my self-inquisitive friend, he proposed a solution to a problem that does not exist. Home owners, could refinance their homes right now, without Obama, at low interest rates. Refinancing is not the problem, The problem is the home must be appraised and with home values down 20%-40%, banks will not finance or refinance because there is no home equity left. Does Obama or any of his advisors know what "Under the water" means? Twenty million American home owners do. Homeowners are squeezed in the equity value vice and low interest rate do not address the equity problem. The home equity is gone, there is no home equity left to refinance.
Woe is me, to know so much, but to get so little TV or radio time to straighten out the nation.
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