Today, President Obama spoke in Las Vegas where he promised to allocate $1.5 billion to unemployed homeowners in Florida, California, Michigan, Arizona, and, of course, Nevada who owe more than the home is worth.
I know President Obama is an intelligent man. He was editor of the Harvard Review, usually given to a pretty sharp person. So I am sure he isn’t proposing this because he is naive or ignorant enough to think this will solve these people’s problem. Nor, is it enough to really help. Obama’s HAMP program has spent $75 Billion to modify loans for homeowners, and it has failed miserably with less than 10% qualifying for a permanent modification. So if $75 Billion doesn’t work, how is another $1.5 going to do the trick?
It isn’t. Obama knows it. This is merely pandering for votes in swing states (and a state where Senate Majority Leader Harry Reid is fighting for his political life). It really bothers me when politicians throw around money to get votes, especially when this will be nothing but wasted money. To me, a billion and a half is still a lot of money. I also think it is unfair for citizens in North Dakota or South Carolina to send their tax dollars to folks in those states when they certainly have citizens who are unemployed and facing foreclosure as well.
I know Obama has lots of supporters who think he really is an agent for change, and he is being held down by DC culture. However, I think these folks need to realize that President Obama is nothing more than a politician. This move proves just that.