Where The Money Isn't
By Michael Reagan
February 20, 2009
Page 2 of 2
The American economy depends on the ability of buyers to obtain credit to finance their purchases. Like it or not, without a source to provide credit, the economy sinks out of sight. It's simple: no auto loans, no new car purchases.
And where do we go to get credit? To the banks, because that's where the money is. Only thanks to government meddling with the economy, we can't get our hands on the money. The banks are afraid to lend it.
Now President Obama has announced his $75 billion mortgage bailout program and he is repeating the previous error -- this time forcing banks to lend money to people who have no equity in their homes, which are now worth less than the money they owe.
According to Moody's Economy.com, about 13.8 million mortgagees -- nearly 27 percent of all homeowners -- owe more on their mortgage than their house is now worth.
"All of us are paying a price for this home mortgage crisis," Obama said.
He failed to mention that the crisis is the result of federal government meddling with the banking system, and now he's promising more of the same.
And they are going to put Ponzi-scheme crook Bernard Madoff in jail for doing essentially the same thing.
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Mike Reagan, the elder son of the late President Ronald Reagan, is heard on radio stations nationally as part of American Family Radio (www.afr.net). Look for Mike's newest book, "Twice Adopted" and other info at www.Reagan.com. E-mail comments to Reagan@caglecartoons.com.
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Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA. >> Back -- Page 1 2
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