Monday, March 24, 2008

Clinton's Philadelphia Speech-Housing proposals will result in Higher Taxation and Nationalisation

Below is an excerpt from a speech given by Hillary Clinton on the economy-in Philadelphia today. As is usual with any Clinton proposal, the devil is in the detail. Superficially the proposals sound attractive. A careful analysis indicates that political expediency is more important to Clinton than financial reality. The measures proposed are designed to get her over the hump of the Pennsylvania Primary. Beware of Greeks bearing gifts. Clinton is angling towards a measure of nationalisation. In addition the hard-pressed taxpayer will pick up the tab for some of her bird-brained proposals.

Note the wording below: “It would be designed to be self- financing over time, so would cost taxpayers nothing in the long run.” This is code for a tax rise in the short term. Short term eventually becomes long term. Sensible measures are required. But certainly nationalisation and a higher tax burden should be ruled out emphatically.



Naturally hard pressed house owners will welcome any offer of help. The general body of tax payers may think differently as Clinton attempts to buy the electors with their hard earned dollars


Speech Excerpt:

"That's why I believe the Federal Housing Administration should also stand ready to be a temporary buyer, to purchase, restructure and resell underwater mortgages.
Just as it has in the past, this kind of temporary measure by the government could give our economy the boost it needs and families the help they certainly need. It would not require a single new federal bureaucracy. It would be designed to be self- financing over time, so would cost taxpayers nothing in the long run.
It's a sensible way for everyone -- lenders, investors, mortgage companies and borrowers -- to share responsibility, keep families in their homes, stabilize communities and the economy.


In order to determine whether the approach outlined by Representative Frank and Senator Dodd is sufficient or whether we need the government to step in as a purchaser, I'm calling on President Bush to appoint an emergency working group on foreclosures. That's the second part of my plan. We simply cannot wait until Congress passes legislation to find the best way to help millions of families."

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