Nancy Pelosi had this to say yesterday:
“Our country faces a serious and worsening foreclosure crisis that is affecting millions of Americans. Addressing the underlying problem of home foreclosures, and stopping the continued drop in home values, is essential to restoring confidence in our financial system, freeing up the flow of credit consumers and small businesses, and spurring renewed economic growth.”
Now, I have several issues with this statement.
- Allowing people to stay in homes they are not paying for does nothing to prevent the drop in home values. Increasing the demand for those homes is the only thing that would accomplish that.
- Allowing people to stay in homes they are not paying for guts the financial system. They will be responsible for the outlay for the home while receiving nothing in return.
- Allowing people to stay in homes they are not paying for does nothing to free up the flow of credit. Without the cash flow from the homes, the lenders will have a diminished equity to debt ratio thereby limiting their ability to make more loans.
- Allowing people to stay in homes they are not paying for does nothing to spur renewed economic growth. Most economic growth is financed by banks with loans. If the banks do not have revenues coming in on assets they have loaned out, they do not have the equity to give business loans which are traditionally riskier than home loans.
Every single aspect of what Nancy Pelosi said is wrong. It fits perfectly in a socialist Utopia where everyone has a nice home and doesn’t have to pay for it. But, that’s not the way capitalism works. In a perfect capitalist society, everyone would be making enough money to easily pay for those loans, the banks would have plenty of money to loan out for business ventures, and each person would have the pride in knowing they own their own piece of Earth.
There is no perfect example of capitalism. However, the United States is as close as it gets and the rest of the world looks at the US with envy because of how close we’ve come to it. There are however, hundreds of examples of failed socialist states. You’d think someone like Nancy Pelosi would understand the danger and errors of her rhetoric. It just stumps me that she’s gotten as far as she is given the utter cluelessness she exhibits daily in regards to almost every aspect of life.
Bottom line, legally preventing lending institutions from regaining control of their assets and allowing them to re-sell those assets to prop up their equity will only continue to stifle their ability to lend money and spur any economic growth.
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EARNEY WRIGHT on 08.13.2009
I cannot imagine how Nancy Pelosi ever got the position of speaker of the house.she is totally unfit to be even a dog catcher.
She is so far left wing socialist she borders on communist.
you can always tell when she is lying……..her lips are moving and he tounge is wagging.
she professes to be Catholic,but that is incompatible with catholisism. she does not believe in christianity, on the contrary she is doing everything she can to stamp out christianity
Moonage on 08.13.2009
You forgot about her blinking too:
http://www.youtube.com/watch?v=k0O0wl_UaU8
And to say she’s quixotic is an understatement.
EARNEY WRIGHT on 09.15.2009
IF THE DEMONCRATS ARE DEMANDING AN APOLOPGY FROM JOE WILSON (WHICH HE HAS ALREADY DONE AND BEEN ACCEPTED BY OBAMA) BEFORE THE SENATE THEN, NANCY PELOSI SHOULD ALSO BE BROUGHT BEFORE THE SENATE AND MAKE AN OFFICIAL APOLOGY TO THE PRESIDENT AND CONGRRESS FOR THE REMARKS SHE MADE ABOUT THE CIA (QUOTE, “THEY ARE LIARS”) HER ALLEGATION HAVE NO FOUNDATION WHATEVER… IF SHE HAS PROOF THEN LET HER BRING IT BFFORE CONGRESS OR ELSE FORCE HER TO BE SILENCED.
ALSO LET ALL THE OTHER DEMOCRATS BE BROUGHT FORWARD FOR TAX EVASION (MR GEITHNER) AND ALL THE OTHERS FOR THEIR ACCEPTING ILLEGAL FUNDS AND CONTRIBUTIONS.
Moonage on 09.15.2009
Good point Earney.