Home Ownership for Everyone?

Should everyone own a home? That was apparently the thinking from approximately 2003 to 2007 when the housing market boomed and then abruptly collapsed. It's no secret today what happened during those hyped years of unbridled greed and foolishness when sub prime loans and other shady deals were the norm.

Okay, so the funny-money game is over, and we can now wait for the housing market to take its natural course of reward and punishment for the thrifty, prudent, foolish and gullible? Not quite. Instead the President and Congress are providing at taxpayer expense $8,000 first time home owner "bribes" and, more recently, $6,500 "bribes" to assist current homeowners buy another home if they've lived in their home for 5 years.

These housing inducements don't come free. They come from us, the taxpayers. The Treasury has committed up to $400 billion to keep Fannie Mae and Freddie Mac (primary lenders to homeowners) solvent and, therefore, able to keep the lending spigot wide open. Why? Because the housing industry wants it. The irony is that people don't have to be given money up front to buy what they would be buying anyhow.

Can't we be satisfied with the ability to write off part of our mortgages? Do we need more? What about the effect on the deficit? What about the precedent it sets? And even more so, what message does it send to those Americans that bought their homes without the upfront "bribes?"

I fully recognize that this country is in a real financial pickle. The Stimulus Program is not without some problems, but it has been necessary to prevent a full-blown depression. Bailing out the automobile industry probably was a prudent move even though we had to hold our nose (and our breath hoping that taxpayers won't be skinned). But plowing billions into the housing market?

The housing subsidy was not made on its merits. Instead, it was a purely political ploy. The reality, however, is that neither the President nor the Congress will be rewarded by fawning constituents. It's jobs that people want; not subsidized homes.

Coming Soon. . .

1. Diplomatic relations between Armenia and Turkey?
2. City of Fresno pensions: Who knew what and when?

Comments are welcome. Click on "Comments" below or e-mail me at abriancalhoun@gmail .com.