Housing Market Losses At $7.66 Trillion, But Still Less Than Obamacare Funding Hole at $17 Trillion

Confounded Interest ^ | -03/31/2012 | Anthony B. Sanders

[whitedog57]

Newsy had a nice summary of the principal reduction debate. It focuses on California Attorney General Kamala Harris requesting that mortgage giants Fannie Mae and Freddie Mac cease foreclosures (at least in California) and perform principal reductions. FHFA Acting Director Edward DeMarco is resistant to the idea saying the principal reductions would cost taxpayers $100 billion.

“Only” $100 billion? A recent Fed study covered in HousingWire found that negative equity in the U.S. is approaching $4 trillion. $100 billion is a big number, but pales in comparison to the cost of wiping out all negative equity.

So, the tab to homeowners and taxpayers for the bubble and its burst is $7.66 trillion. And this is a conservative estimate since it ignores HAMP et al and losses to banks and investors on housing and mortgages.

Now comes a horrific revelation from Senator Jeff Sessions (R-AL) that a $17 trillion hole was found in the “Affordable” Care Act (aka, Obamacare). This puts the unfunded gap in other obligations, including Social Security, to $99 trillion.

And this is on top of the $15 trillion in debt, including $5 trillion in funds borrowed during Obama’s term in office so far, that we and our children now owe. policies were marketed as “making housing affordable.”

Do these big government policies look affordable?

Well, it will require Justice Kagan’s “a boatload of money” to fund these staggering entitlements and housing policies. From taxpayer pockets.

[whitedog57]

I see this on Zero Hedge this morning. Wow! 1) the housing collapse cost taxpayers and homeowners trillions of dollars, but it is peanuts relative to the Obama care funding hole. 2) How did Democrats and Obama miss this $17 trillion funding hole on Obamacare? Or did they know about it and wanted to require government takeover of everything?

[ClearCase_guy]

Cloward-Piven

Break the system -- make everyone dependent on government handouts, and make the size of the obligations completely unsustainable. Everything will collapse, society will be in chaos, and then Activists can step up and say, "First thing we do is burn the Constitution and start over. Second thing we do is study Das Kapital. Next ..."

[pieceofthepuzzle]

“Cloward-Piven”

We need to take back the universities. Cloward, Piven, Ayers, Dohrn, Krugman, Obama, Kagan, Derrick Bell, Henry Gates, etc. etc.. have all used their university jobs or university backgrounds to promote their causes. The universities have become the bases of operation and the incubators of the arrogant ideologues who are putting the future of our children at risk. Further, they've lost their way and have ceased to be centers of expansive thought and freedom of expression. They use the word ‘diversity’ to describe the color and the ethnicity and gender of their faculty and students, but do not allow diversity of thought. They increasingly tolerate only one way of thinking about the world. We need the universities to be what they are supposed to be.