Resisting the Song of the Sirens
2008-09-04

Resisting the Sirens’ Song

You heard it here first from ALG News – and now like a systemic infection the ruinous moratorium foreclosure movement is spreading nationwide.

Fortunately, one State governor is going against the sirens’ song with the fortitude of Odysseus by threatening to veto any attempted deferment of foreclosures.

Though the Minnesota State Legislature has not yet acted on the proposal, it appears likely that they will:

“Neither the House nor Senate has taken final action on a more controversial bill that would defer mortgage foreclosures for a year.

“The measure would allow homeowners with subprime loans to avoid the loss of their property while making partial monthly payments. Davnie said the bill is a bold and balanced approach.

"’This is a crisis for families across the state,’ he said. ‘We can, if we act decisively, prevent avoidable foreclosures in Minnesota for 15,000 families, and that's our goal.’”

Minnesota Governor Tim Pawlenty, a Republican, believes this will only make matters worse:

“Gov. Pawlenty described Davnie's deferment proposal as well intended, but said he's leaning toward a veto if it lands on his desk. Pawlenty said deferring foreclosures could have an unintended effect on credit and interest rates for all homeowners in the state.”

Not only that, the biggest beneficiaries of the deferment would be the lenders and Big Government, who stand to lose far more in revenue when homes are foreclosed upon.

ALG News will keep you apprised of the ongoing Big Bailout across the nation, and of any politicians who bravely resist this sirens’ song.