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9. You’re not thinking about the future prosperity of this Country. While this looks good on its face by saving homeowners money and allowing them to stay in their homes, you are missing the bigger picture here. There is a natural housing cycle that has been disrupted by the housing bubble and artificially inflated housing prices. Basically this program would allow the baby boomers to stay in their 5 bedroom house they no longer need because their kids are grown, yet the cost of selling the house to downsize doesn’t make financial sense given the current market conditions (which wallstreet created by bundling and selling MBS to financialize housing). This disallows the younger generation (who needs this house with a growing young family) the opportunity of home ownership. We are seeing this now in the data, younger generations are not having kids because they have no hope for the “American dream” of owning a home.

6. There is a huge risk to the financial system in that when, not if, these secondary mortgages default the Government is left with the loss of principal/interest and this flows down to the tax payers to make up this difference. This is inflationary and will keep interest rates higher for longer. This is two fold, in that as boomers taking out cash to buy more with debt, which is basically more money chasing the same amounts of goods, which is inflationary. Additionally, if they use that money to buy more homes, this inflates the housing prices more, which in turn inflates Consumer Price Index (CPI) because housing is approximately 30% of the index. It is not right or just to “pass the buck” to our younger generation, this is doing a disservice to the future generation of our Country.

This is a bad idea and I do not support this. Please start making better decisions for the prosperity of our future generations.