That's a nice gig if you can get it. Between the government forcing someone else to pay for your mortgage and your health insurance unemployement doesn't seem so bad.
The program is supposed to last for two or three years "depending on the individual's finances and the economic situation" which means three years. After three years I guess the individual is supposed to start paying back the loan, but the the article doesn't mention any details of that. When the state of PA starts trying to make people pay back these loans you will hear wailing and whining about the poor victim having to pay back two loans at the same time.
My favorite part is where the article mentions describes the program as one "which has depleted resources". No kidding. I can't think of any forced wealth redistribution program that doesn't have "depleted resources". They ALL have that. If there is ever a forced wealth redistribution plan that doesn't have "depleted resources" then the government will expand the program to cover more people and transfer larger amounts of money until the resources are depleted.
As obvious as the whole "depleted resources" issue is, what is the federal government doing? If you said "More of the same and piled higher and deeper" then you are right.
From the article:
Using taxpayer funds to keep out-of-work homeowners in their homes until they find another job is an option being looked at by some officials in the Obama administration, according to people familiar with government financial rescue programs.
At issue is an administration program that is employing $50 billion in taxpayer funds from the $700 billion Troubled Asset Relief Program to help lenders modify mortgages for troubled homeowners.
When I was a kid I remember one of the many times I did something stupid. I don't remember what I did but I do remember my dad asking me "Why did you do that?"
I replied "My older sister did it, too."
He replied "If she went out and stepped in a pile of dog mess on purpose and tracked it on the carpet would you do that, too?"
Evidently, this administration would.
Here is another little bit that I love:
The loans would not accrue interest until their income is restored.I see a benefit of high inflation rates as far as the government is concerned. Want to bet on whether the "income is restored" part is indexed to the inflation rate?
I don't think we have to worry too much about the recipients of this program ever having to pay back these "loans" from the government.
I don't really know what the answer is to this situation, but I'm pretty sure that throwing more money at it isn't going to help.