“Huh?” That’s what I thought when Obama seemed to be pushing renting in Town Hall today. “What’s up with that”, I wondered?
I’ve never, ever heard a President in my lifetime promote renting. Not that there is anything wrong with renting, it’s just that the “American Dream” has always had as a major component home ownership and it has certainly become an ingrained part of the American psyche.
In case you are not aware of it, the President and the PTB seem to be on a concerted effort to kick the stool out from under the entire concept of home ownership as we have known it over the past decades. They are discussing raising down payments requirements to 20%! in order for a loan to be government backed. Google down payment requirements if you don’t believe me. They are also trying very very hard to eliminate the mortgage interest deduction. Remember that almost the only asset of any size that most Americans have is their home, which they also get to live in.
Then I tumbled onto thisarticle from Forbes. And it all begins to make sense.
Look at the title: Obama Pushes Renting, Making It Easier To Whack Fannie And Freddie (author Martin Fridson)
And if you read the article, “whacking Fannie and Freddie” seems to be a good thing. The title of this diary is a sentence in that article. It also says that we “have way too much of our national wealth tied up in housing.” Really?
You have to wonder where the PTB would people prefer we have “our” national wealth tied up? Oh that’s right –EQUITIES otherwise known as THE STOCK MARKET. Alan Greenspan also used to fret that consumers should spend their frozen equity and use ARMs even when the crash was evident. Recall how much they want to privatize Social Security so we will be forced to invest in stocks because interest rates have been frozen at such historic lows for so long that saving in traditional safe vehicles like CDs has been rendered pointless.
Oh, and who OWNS the rental stock that thousands will be forced into after Fannie and Freddie are whacked and government backed mortgages are a foggy memory? That’s right, THE WEALTHY!
This is one more front in the class warfare being fought under people’s noses. It’s just not “practical” for the little people to own their own homes any more.