The Rich are Hurting: USA Today Wants to Spur Congressional Action

[Hannah Bell]

USA Today gives readers the tragic story of Robert Westover, a homeowner who is desperately hoping to be able to sell his ocean view vacation home for a profit of just $265,000 (approximately $175,000 after adjusting for inflation). This intended profit is equal to more than five times the median worker's annual pay and more than 30 times the average annual TANF payment to a family.

Fortunately, there is hope for people like Mr. Westover. The National Association of Realtors is pushing to have the government provide subsidies for purchasing such high end homes by guaranteeing even very large mortgage loans. (The current limit is between $417,000 and $730,000, depending on the area.) If the guarantee lowers the interest burden by 1.5 percentage point, then the government would effectively be handing $15,000 a year to someone who takes out a $1 million mortgage.

http://prospect.org/csnc/blogs/beat_the_press_archive?month=07&year=2009&base_name=the_rich_ar_hurting_usa_today

[SPedigrees]

1. Oh cry me a river for Mr Westover. eom

[RandomThoughts]

2. So the story is about a lobbying group pushing for reform to help the rich?

What makes that a news story?

[zorahopkins]

3. NO Subsidies To Leeches!

O.M.G.

There should NOT be any subsidies for leeches and parasites like "Mr." Westover.

The government should seize this property (poor Mr. Westover would still have some place to live).

Then the government should sell the property, and use the money it gets to help the poor and those who have NO place to live.

[OHdem10]

4. They will most likely get it.

[Javaman]

6. Of course they will.

nothing spurs action like a rich bastard in trouble.

[hedgehog]

5. The original article seems to be suggesting that the banks

are requiring a 20-30% down payment. Isn't that rather standard regardless of the price of the house?