Stop it! Stop it stop it stop it!

http://www.nytimes.com/2010/03/26/business/26housing.html?hp=&adxnnl=1&adxnnlx=1269612039-7HXzWiYyyDHWzMauXIs63w

A couple of things that really, really bother me.

"This much was clear, however: the plan, if successful, could put taxpayers at increased risk. If many additional borrowers move into F.H.A. loans, a renewed downturn in the housing market could send that government agency into the red."

Well consider why this was such an issue in the first place! Buyers are trying to acquire houses they can't afford, goaded on by greedy real estate agents (and a lot of scammers, my family new people who actually encouraged people to find ways to appear as though they could afford houses they really couldn't). Now you're creating overly complex laws and refinancing mortgages to help these people? And on top of that, its a plan that could screw over tax payers if the housing market takes a turn for the worst?

"The F.H.A. has already expanded its mortgage-guarantee program substantially in the last three years as the housing crisis deepened. It now insures more than six million borrowers, many of whom made minimal down payments and are now underwater."

Oh, thrilling.

"Another element of the White House’s housing program will require lenders to offer unemployed borrowers a reduction in their payments for a minimum of three months."

Well, its nice to know the size of the gun we'll be using to shoot ourselves in the foot.

"An administration official declined to speak on the record about the new programs but said they would “better assist responsible homeowners who have been affected by the economic crisis through no fault of their own.” "

-This in particular has Omega written all over it. Please, Omega, edit this post and provide your own commentary. If you can't edit it, let me know and I'll figure out what buttons I have to push to give you permission.

Wait, wait wait wait..... "I can't say anything about what these programs are, but trust me. They're going to be totally awesome. It'll save all those poor people who bought a house they can't afford, and there will be cake for everyone."
I'm.... Honestly not sure where I can start here. Sorry Damios, but my mind shut down trying to understand what type of thought process these people had to be going through to consider this a good idea..... Although it probably doesn't help that I'm one of those people whose response to the housing crisis is, "Well, then you shouldn't have been spending money you don't have! That's just common sense! Unless you're in the government!"
....
My god. The recession was caused by the average citizen becoming like our government. That explains a lot more than I would have liked it to.

"The new initiatives would expand the government’s current mortgage modification plan, announced a year ago with great fanfare. It has resulted in fewer than 200,000 people getting permanent new loans. As many as seven million borrowers are seriously delinquent on their loans and at risk of foreclosure."

Ok, so its a VERY big gun.

"While fewer people are beginning default, the number of borrowers who are seriously distressed is rising. In the fourth quarter, the number of households at least 90 days past due on their mortgages swelled by 270,000, according to a report issued Thursday by the comptroller of the currency and the Office of Thrift Supervision."

It's not even a gun anymore. We have taped a brick of C4 to our foot.