23 April, 2023 by Eric Dunkelberger
The theft of the money in American’s pockets continues. This time, it’s not going to fund the war in Ukraine, nor is it paying off student loans that the students want to welch on (of course, that will come). No, it will involve the focal point of the American Dream, home ownership.
For decades, in fact centuries, Americans wanted to buy their own home. They worked to that end. They saved their money to that end. After World War II, the American Dream became easier. The veterans, who defeated the Nazis and Imperial Japan, returned, armed with VA Loans. Existing homes were being snapped up, while new homes were popping up everywhere. The economy was great and so was the lives of the people of this country, especially after considering that just 15 years earlier America was beginning to plunge into the Great Depression.
Life was good! This continued for many years. The economy ebbed and flowed as usual, as did the housing market. Loans were available for houses, although at varying rates depending on credit. Anybody that desired a home, could save their money, balance their checking account (to track how much money they had at any given time) and could figure a budget, could buy a house.
That was then and this is now. On 1 May, 2023, The Biden Abomination, in cahoots with the Federal Housing Finance Agency, have decreed that those who have good credit, dictated as over a 680 score, will be forced to subsidize those with a lesser credit score, with the intent to redistribute financing for home ownership. The rule (not a law mind you) states that anyone with more than a 680 score will be charged an “extra” $40 per month on a mortgage of $400,000. If that buyer has a good sized down payment, that will cost them more. In other words, homeowners will be fined for being responsible. All this to redistribute wealth, steal wealth in the name of equity.
Now, let me remind everyone, the economic situation is not really great right now. Inflation in 2021 was up about 8% over 2020. 2022 showed an increase of around 6% over 2021. Over the past two years, the rate of inflation rose 14%. Things are not improving. It costs more to live in the same manner now than it did last year. People are cutting back. The housing market has slipped over the last few months. Builders are filing fewer permits to start new homes. Sales of existing homes has declined 22% over the same period of time in 2022. Fear exists that this rule will only serve to further stifle home sales!
To date, the Biden Abomination has done nothing for Americans but hurt them. I believe this new edict will further that record. Will the Biden recession become the Biden depression?
marjarhead1 