Is the Government Teaching Us to Be Responsible or Dependant Upon Them?

As the old Chinese proverb says "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime." With Obamanomics ruining our economy, its no wonder those who voted for Obama like what they see. Gone are the days of working hard for what you want. In today's world, being irresponsible pays off.

Keeping up with the Jones' and living above your means is the main reason we have seen the real estate bubble burst. This combined with lowering the standards so low income families could obtain loans with no money down and no credit history to validate their credit worthiness added to the crisis. Irresponsible borrowers and politicians should shoulder the blame. Not the American taxpayers.

We have people in office, such as Barney Frank (D-Mass), who in 2003, while he was the ranking Democrat on the Financial Services Committee, opposed the Bush administration proposal to transfer oversight of Fannie Mae and Freddie Mac from Congress and HUD. The Bush administration wanted to create a new agency withing the Treasury Department to overlook these two organizations.

The Bush administration did not believe Congress had "neither the tools, nor the stature" for oversight of Freddie Mac and Fannie Mae as reported in the New York Times newspaper. However, Barney Frank (D-Mass) stated in September 2003 about the situation with Fannie and Freddie by claiming "These two entities...are not facing any kind of financial crisis...The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of "affordable housing."

This was the problem. "Affordable housing" is what caused a downfall in every sector of America. Irresponsible individuals bought houses they could not afford. So the real estate bubble burst. This burst caused the banks and mortgage companies to lose money from foreclosures. Just imagine if banks only loaned money to those that are qualified, we could have avoided this economic crisis.

What a concept right? If you show that you are responsible by paying all your credit cards on time, build up your credit, save for a down payment on a house you can AFFORD, you should have every reason to be proud. However, those who did none of the above were awarded, not once but twice. Why do I say this?

Well, to begin, these unworthy individuals, were rewarded the first time by obtaining loans for houses they could not afford. The so-called "Ninja Loan" was where the banks would take on a high risk borrower, meaning they had No income, No job, No assets to secure a loan. No, they were special and had special circumstances which the government forced upon Freddie Mac and Fannie Mae.

Back in 1995, under the Clinton administration, Freddie and Fannie started receiving government backed tax incentives for purchasing high risk mortgage back securities, most of which included loans to low income borrow. Here is where these two organization got involved with the sub prime mortgage market.

Housing and Urban Development (HUD) set a goal in 1996 for Freddie and Fannie that at least 42% of the mortgages they purchased should be issued to high risk borrowers whose household income was below the median household income in their area. President Bush increased this target to 50% in 2000 and 52% in 2005.

Does anyone see a problem with these policies? Why would anyone take on a high-risk borrower, knowing the stats show they are bound to fail? How can individuals with no income, no job and no assets get home loans to begin with? Again, its our government pushing into our daily lives.

I know, the lenders, mortgage companies and banks are to blame for it all but the truth is these "low income, high risk" individuals do not have a right to own a home. Owning a home is a responsibility not a right. By being irresponsible our government rewards such individuals?

Now, we are in a housing crisis. These individuals were already behind with their mortgage payments and along comes "Super Obama" to save them again. However, Obama is not the savior, the hardworking, responsible American taxpayer is. The responsible ones always pay for the mistake of others.

This began the bailout syndrome we are facing in America today. Obama said during his presidential campaign that he would "spread the wealth around" and he has stuck to his words. He is taking the responsible people's money and spreading it to those irresponsible ones. Its only fair right?

So, these high risk borrowers received their benefits twice. Once when they first received the loans because are government set quotas and now after failing to be responsible, they benefit from a bailout. Those who have been responsible just get the short end of the stick...and get to spread their wealth amongst the irresponsible.

Hard work use to be rewarded in America. Today, many depend upon the U.S. Taxpayer to support their wants. What happened to working hard, doing what is right and living the simple life?

Most of those that are responsible know that you have to work hard to get anywhere in life. They also know that when you go in for a loan you should have a job, steady income and money to pay down on that house. You don't jump straight into a "McMansion" as some of the irresponsible ones did.

You start off small and purchases what you can afford. Keeping up with the Jones' and living above your means will turn you into one of those irresponsible individuals. Why should these types of people be rewarded?

Look at the auto industry bailouts, the bank bailouts, the insurance company bailouts and the wall street bailouts. Irresponsibility being rewarded by our government. Just throw it on the backs of the hardworking American Taxpayer. Just more examples of spreading the wealth. Isn't that right Mr. Obama?

Being self-reliant is not a sin, its a virtue. Hard work is what our country was founded on but in today's world, being irresponsible seems to pay with benefits. Its time to stop depending upon the government and the American Taxpayer to foot your bills. They should not have to fund your standard of living.

Depending on the U.S Government only teaches you to demand more instead of being grateful for what you have. You learn to be a dependent taker rather that a producer or contributor. Turn your back on individuals who offer you everything in an attempt to appease your every want and need.