Wednesday, May 12, 2010

States: Let taxpayers cover your mortgage

http://money.cnn.com/2010/05/12/news/economy/taxpayer_mortgages/index.htm

Check out this article. The Obama administration is using the Hardest Hit Fund to help those underwater and unemployed. Do you think the proposal will help those in trouble? Do you think the government should be supplied more money for this fund to make a proper impact? Will there be a moral hazard problem and will this dissuade people from finding work?
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5 comments:

  1. Ryan BizzisMay 12, 2010 at 3:32 PM

    I think this proposal could definitely help some people who really need it right now. The problem is, a large majority of stimulus money is not finding who or what it should actually be intended for. The article mentions that this money would only have a small impact on preventing foreclosures. In order to receive money there should be a strict application process that somehow weeds out people taking advantage of this handout. Also, once a person receives assistance it should only be temporary (3 months or so).

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  2. MattRMay 14, 2010 at 5:52 PM

    I'm sure this will help people in the short run. However, I think it is counter-productive in the long run. Remember, housing prices still need to come down. Proposals like this will just lengthen this process, and at the expense of the taxpayer.

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  3. Ben MinkoffMay 17, 2010 at 6:15 PM

    This will defintley help people out, it just won't help out a significant population. As Matt says, this will help in the short run but not in the long run.If this is still a problem lets say 10 years from now that people still haven't paid off their mortgages then I think taxes will increase and the government will just use that money to give back.

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  4. Ashlee SteudleMay 18, 2010 at 10:29 AM

    I agree with Matt. This will help people who are struggling in the short run, but not in the long run. People will be able to pay for their mortgages while they are struggling to find employment. However, this doe not change the fact that people in our society are living way beyond their means. In this does not change, our citizens and country will continue to accumulate more debt and replicate these problems at a later date.

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  5. k06rl01May 18, 2010 at 2:46 PM

    I agree with Matt as well, this will be a beneficial move in the short run, but may not be in the long-run. I also agree with Ashlee that the current spending behavior is fueling the fire.

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