Saturday, September 17, 2011

California Ballot Initiative is NUTS!

With soccer games cancelled this morning, it suddenly feels like I actually have some time to post something. Between being busy and being a little bit burned out on politics in general, I haven't really posted much lately. I'm sure I will get back into it more as the campaign season heats up, but it's nice to take a bit of a break.

I couldn't really let this little story pass without comment. I had to shake my head at this recent blog post from Don Boudreaux at Cafe Hayek. In his typically acerbic style, he skewers a new California ballot proposal. This proposal would make home ownership a fundamental right guaranteed by the California Constitution. Essentially, it would outlaw foreclosures, so people could not be forced out of their homes if they fail to make their mortgage payments. It also would force lenders to reduce mortgage payments on a loan if the property value drops.

My favorite line from this proposal, which would become part of the Constitution, is this: “foreclosure has become a method of increasing a lending institution, loan servicer, mortgagee, trustee and beneficiary’s bottom line and profits by turning borrowers out of their homes.”

Well, duh. Or, they could just choose to not foreclose, operate at a loss and then go out of business. Seriously, what kind of delusional world do these people live in?

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