Dennis Cardoza, representative of California’s 18th district, has one thing right, and that’s the fact that some areas of the country have been harder hit by the housing crisis than others.  His congressional website mentions that he is pushing HUD secretary Donovan to recognize that California needs more help (translation: more bailouts for irresponsible government and mortgage borrowers)  than the rest of the country.

President Obama will go down in history as Mr. Bailout, presiding over and supporting uncountable bailout initiatives to reckless speculators of every kind.  Dennis Cardoza desperately wants Ovama to add another notch to his bailout belt, another notch that will undoubtedly be paid for by the Chineese or Saudi government.  Or perhaps the foreign bond holders have had enough, and the Fed will step in, yet again, to monetize the debt – essentially printing whatever it wants without regard to accounting for the total.

With the Home Act, Dennis Cardoza does *NOT* want affordable housing.  Instead, he calls for more reckless lending and reckless re-financing to people who gambled on insane home price appreciation.  He does not recognize that underwater and tapped out home “owners” would be better off renting much more affordable apartments.  Instead, he calls for:

  • Artificially low teaser mortgage rates of below 4% to spur a renewal of reckless lending
  • Loan guarantees by insolvent and now government (taxpayer) owned Freddie Mac and Fannie Mae
  • Unaffordable housing and artificial “floors” in home prices to keep would be responsible borrowers on the sidelines
  • Doing whatever it takes to ignite an artificial and unsustainable new bubble in home prices
  • Lengthening the average fixed mortgage term from the current 30 years (perhaps 100 years?)

Here are the exact words from his irresponsible Home Act:

This home purchase and refinance program will use the conservatorship of Freddie Mac and Fannie Mae to stabilize the housing market.  From the date of enactment until Dec. 2010, Freddie and Fannie will guarantee to lenders that they will purchase any mortgage meeting the stipulated qualifications (4% or better interest rate and a fixed term of at least 30 years)… This activity in the housing market will create a floor for home prices and trigger a stabilization and subsequent increase of home prices.