President Bush's plan to help out customers with subprime mortgage loans seemed like a gesture of good will and smart money. Freezing interest rate on some subprime mortgages will certainly help some people, but not everyone. Certainly there will be people who will not be able to make their payments even with the rate freeze. Then what?
Knowing government like I do, it will only be a matter of time before some government type tries to help even more by suggesting another solution, perhaps a federal program to help subprime mortgage customers make payments. And if that doesn't work, there might be another solution and then another solution. Before you know it, there's going to be a call for someone to set up an agency to address this situation.
They won't have to look too far for a model. All they need to do is look to the World Bank.
For the uninitiated, the World Bank's job is to loan or grant money to underdeveloped countries for infrastructure and other important needs. The loans are often low interest and usually don't have to be paid back within a certain timeframe. If the country needs more money, the World Bank can grant or loan more money with few strings attached.
See the pattern here? Both Bush's solution for the subprime mortgage crisis and the World Bank are joined at the hip because of the type of people being helped. Most likely, the people helped by either are not capable of meeting their financial obligations for one reason or another, which makes them prime targets for additional assistance. Each new person on this dole becomes a way for government to expand.
Now, let's say for the sake of argument that a governmental type here decides America can't handle the subprime customers' needs. It's only a slight change of stationary for the subprime mortgage crisis to come under the pervue of the World Bank. That, ladies and gentlemen, would bring us more in line with globalism. If that happens, say goodbye to American sovereignty as we know it.
But hey, at least some subprime mortgage customers get to keep their homes a bit longer, right?