Inquiring minds are reading the NYTimes and learining, yet again, that big government just doesn’t get it. If for no other reason than they are rules makers, not money makers like the country’s population at large. In an article entitled, “Flawed Mortgage Papers May Pose Economic Risk, Panel Says” (sorry the link doesn’t work but you can search for it by title) three government workers are asked the same question…and get three different answers:
Phyllis Caldwell, chief of the Treasury’s Homeownership Preservation Office, articulated the Treasury’s view in her testimony before the panel, according to the report. She said false affidavits and other processing flaws weren’t problematic for the government’s modification plan, known as the Home Affordable Modification Program or HAMP.
Because loan modifications don’t require physical production of a mortgage and note, the Treasury has not been examining whether document flaws have an impact on its efforts, she said.
Ted Kaufman, the former Delaware senator who leads the panel, saw it differently on Thursday. “Financial institutions all say everything is fine, but prudence would dictate that we make sure,” he said. “Not that we don’t trust the banks, but let’s take a hard look at this thing.”
In an interview on Friday, Tim Massad, acting assistant Treasury secretary for financial stability, clarified his agency’s position. “We weren’t saying these problems aren’t serious,” he said. “They are extremely serious, they are clearly widespread, they do pose dangers and they need to be fixed. But based on the evidence today, we didn’t see a systemic risk to financial stability.”
The horror though is Ms. Caldwell. She is the head of her program and she doesn’t seem to think that facts matter to the carrying out of her mission. That explains everything about why government programs grow massively and eventually collapse under their own weight. Rules don’t matter to the people adminisitering the ‘assistence’. Only the assistence matters.
This is a definition of insanity. What next, driving an automobile until it is empty and then demanding the government meet the need of the populace by supplying gasoline to every person standing next to a car…no matter if they own the car or not?
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