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GLENN: Let me just play some of the clips from yesterday and Barack Obama's speech in Phoenix, which may I just approach the bench on an ADD moment here, your Honor, for just a second? Why did we have to sign the bill in Denver and then give this speech in Phoenix? I just, I know the solar panel, the socialist solar panel company is in Denver, but maybe they could have gotten solar panels and got into a solar plane and flown to the president. I mean, he was already out taking 747s, a private 747 so he could have Valentine's dinner, you know, with his wife. So he was already halfway across the country. You might as well go to Denver to the socialist solar plant thing and while you're in Denver, you might as well go to Phoenix to go to a high school to announce the mortgage bailout.
STU: You have to remember, Glenn, these airfield companies are struggling and this is Barack Obama's own stimulus plan for the people.
GLENN: Well, he's also helping the environment. No, wait a minute, that doesn't work. Okay, so he was there yesterday and, wow, I thought Bono walked on stage.
[ APPLAUSE ]
PRESIDENT OBAMA: Thank you so much. Thank you.
GLENN: I can't hear you!
PRESIDENT OBAMA: Thank you.
GLENN: You ready to have a good time? I can't hear you.
PRESIDENT OBAMA: Thank you. Please, everybody have a seat. Thank you.
GLENN: This is the president of the United States.
PRESIDENT OBAMA: It's good to be back in Arizona.
GLENN: Again this is the president of the United States.
PRESIDENT OBAMA: Thank you.
GLENN: Thank you.
PRESIDENT OBAMA: Are you excited?
GLENN: Wooo! I can't hear you!
PRESIDENT OBAMA: Thank you. Thank you.
GLENN: This is the president of the United States.
PRESIDENT OBAMA: And thank you for arranging for such a beautiful day.
GLENN: Yeah, arranging such a beautiful day. Yeah, they are the ones who did it. Okay. So here he goes on Clip 2. I want you to hear what he says: I'm planning on helping mortgage people out. Here they go.
Thanks to Matt for sending this in...
PRESIDENT OBAMA: Plan I'm announcing focuses on rescuing families who played by the rules and acted responsibly.
GLENN: Stop. That, I think that would be you, right? Have you played by the rules? Have you acted responsibly? If that's yes, then that would be you.
PRESIDENT OBAMA: By refinancing loans for millions of families in traditional mortgages who are underwater or close to it.
GLENN: Stop. Who are underwater or being close to it. I'm underwater in my house now. I've lost, I don't even know what percentage. I know that the house that is right down the street from me that was the same price of the house that I purchased, when I purchased it, it went for sale, they just sold that and it just went for half of what I paid for my house. So my house is underwater, yet I don't need to refinance. Why is that? Oh. I played by the rules and I didn't buy too much house that I could afford. Okay, okay, I got it, all right. So being underwater is something that's important to the president, but I don't under -- I mean, unless you're selling your house. If you're selling your house, you're screwed. If I lost my job, I'd be screwed. But if my house was underwater or close to it, I wouldn't have to need help to make my mortgage payment because I still have my job. I don't understand the problem here. I didn't buy too much house.
You know, if you're depending on the equity in your house to live your life, you know, or you're selling your house, neither of which is a particularly good idea at the moment but I mean, why else would you need it? Everyone within the sound of my voice, listen up. Your house is underwater. Your second biggest investment, your car. It's underwater. Do you need somebody to help you with your second biggest investment, your car? Why would you need it for your house? Now, if you have to sell your car, you're screwed, but don't sell your car right now. Keep driving it.
The real trouble is not who's underwater. The real problem is those people that can't make the payments, and unless you've lost your job or unless you have to move for some reason, your house being underwater means nothing. Don't sell it.
STU: It's weird because I think the car is the perfect example because every new car that you buy, you're buying at the peak of a bubble because it's the second -- everyone always says the second you walk off the lot, it goes down in value. So if you think about it that way, really that always happens. But the point is that you don't buy the car and a year later sell it.
GLENN: The only people that would buy the houses where they would be concerned about being underwater right now again are the people that have to move because of a job, they lost their job and can no longer make the payment, or the people that are not included in this bill which are the people that were flipping houses.
STU: Right. It's not to demean. Like there's obviously a large amount of people who have lost jobs and everything else, but they tried to use the whole huge number of X amount of millions are underwater. Well, a lot of people are underwater on things. That doesn't mean that it's a disaster. There's a small percentage of those that would benefit in theory from something like this, you know, regardless of all the government restrictions that I'm -- all the loopholes that I'm ignoring here. But I mean, there's a small percentage of those that are actually affected by it.
GLENN: Okay. So what does it mean that your house is underwater or close to it? What does it matter if your home is only worth a little more than you owe? Isn't that still an enviable position today? Your house is, or close to it. Why should you have, why should you have a bailout if your house isn't even underwater; it's just close to it?
Obama's example is somebody who could save almost $200 a month on their mortgage, and while lowering the mortgage payment by a couple of hundred dollars is great... is that what this crisis is about? See, this is never -- he is never what he says he is. He never tells you straight up. This crisis is not somebody who can't make a $200 a month payment, whose house is almost underwater. The people you should be concerned about are the people that don't have a job, that must move because of some crisis, not because our houses are -- don't sell your house. To me most people who bought a house with a $1300 mortgage can either afford a $1300 mortgage or they just lost a job and can afford zero dollars a month, not that they can only afford $1100.
Clip 3, please.
PRESIDENT OBAMA: My administration will continue to support reforming our bankruptcy rules so that we allow judges to reduce home mortgages on primary residences to their fair market value, as long as borrowers pay their debts under court-ordered plans.
GLENN: Stop, stop. Now we have judges going in. Who's going to invest in money? You know, the problem is nobody wants to buy. Why is Fannie Mae, why is Fannie Mae so important? Why did he say he's going need at least $200 billion to send to Fannie and Freddie? Why? Because they buy the mortgages that no one will buy. You're on the hook for mortgages that no one will buy. What do you mean nobody will buy those? Mortgages are investments. People buy the mortgage and they bet that that mortgage is going to be good and so they buy that and they hold onto that. They buy your debt. That's how you get the money.
Well, why would I as an investor want to buy anybody's mortgage if I think the judge can come in after we've done the deal and change all the rules? Nobody's going to do that. Nobody in their right mind. "Wait a minute, wait, wait. A judge can come in and change all the rules? We have a contract." "Yes, I know, but they didn't abide by that, but they're definitely going to abide by the court-ordered rules now."
You're creating a nightmare that no one will invest in, but that's -- because people in Washington have never run a business, this is the way they do it. As long as borrowers pay their debts under a court-ordered plan. They didn't pay their debt last time. Again I understand if you've lost your job or there's been a crisis in your family. I get it. But not because your mortgage is underwater. That's not a crisis. That's a fact of life. And almost everyone within the sound of my voice is in that position today! All right, go ahead with the clip.
PRESIDENT OBAMA: I just want everybody to understand that's the rule for investors who own two, three and four homes. So it should be the rule for folks who just own one home as an alternative to foreclosure.
GLENN: Wait, wait, I didn't even -- that's the rules for one, two or three or four homes? Really? That the judge can come in and change the rules? Is that what it is? "The administration will reward those who can't pay their debts as long as they pay their new debts. It doesn't make any sense. As long as we're talking about bankruptcy.
By the way, if that is the rule for investors, is this now the two wrongs make a right act? Is that what this is? He also goes into investors later, and I would like to know: When was it wrong for people to be investing in a country? When is it wrong to make investments, especially in land and property? Why don't we demonize those who were in the stock market? Why don't we demonize 401(k)s? We're investing in the market. That's the way this system works. Why -- I mean, look, if you are flipping houses, well, you know, you're taking a risk. But I believe everybody is taking a risk. I believe everybody should pay the consequence of that risk. But if we're bailing some people out who took a risk, why are we not bailing out the investors? Are we teaching people don't invest? Are we teaching people -- were they any less risky who had three houses and were living on the edge, were they any less risky than those who came in, didn't have proof of identification, didn't have proof of employment, maybe fudged on their pay scale, the bank didn't call and verify the pay scale? Are they any different than sitting down -- and don't tell me this didn't happen because I know people that it happened to, that they sat down and the bank was like, "No, you can do this," and the wife or the husband looked at one another and went, "Honey, if things don't work out, we can't afford that." And somebody going, "No, no, no. No, it's okay. It's okay, it will be fine. Look at the way the market's going." That person deserves to lose, whether it was one house or four houses. You bet wrong. I know this sounds completely, you know, hate mongering, "Just let them starve, let them die," but charity does not come from the government.
Clip 4, please.
PRESIDENT OBAMA: Government has to take responsibility for setting rules of the road that are fair and fairly enforced.
GLENN: Stop. Is this fair? Is this fair? You played by the rules. Your house is underwater. You make over the income limit. Proportionately it's exactly the same. Percentage-wise you're just as much underwater, you're struggling just as much. You played by the rules. Is it fair that you get no help? Is that fair? Is it fair just to help some and not others? I know -- there are 15 houses on my street that are empty, 15 on my street that are for sale or empty. I know people that were wealthy a year ago. They're not today. They are looking at exactly the same kind of conditions that somebody else is looking at that lost their job or had their finances turn upside down or were too risky or whatever. These people were making good money a year ago. They were good, straight-up people. They were working hard, they work in Wall Street, they're traders, they're bankers. All of a sudden their whole world disintegrated. They did nothing wrong. They weren't the ones trying to screw everybody and now they've lost it and their family is on the verge of being evicted and on the street. They can't get help. Why? Because they were making too much money?
STU: Obama actually addressed this in, at least partially in the speech. I don't know if it's in one of these clips or not. We can find it. But his idea -- if you're playing by the rules and you're not getting anything out of this, his argument to that is, well, if your neighbor who wasn't playing by the rules falters, it's going to hurt your property value. So in essence it is a bailout of you, too. You are getting help because we're helping him, because I think they said one foreclosure cost your house 9%.
GLENN: He is doubling down on the bet. This is the problem. Let's just say somebody bought a house for $250, okay? Really crappy house, $250. This is before the bubble. $250. The house is now worth $180. They've lost all that money. Now, they're bailing out the banks. So we're getting some of that money back to the banks already. Now we're also making up the difference between 180 and 250. We're doubling down. Assuming in his speech he talked about how once we get this stabilized, then these construction companies and these paints and home goods stores, they are going to be able to chug again. No, they won't. This was a bubble! Our houses were never worth this. There are too many houses. People can't afford all of these houses. If we go back and put all of these construction companies back to work building houses and the paint store, we're going to have another bubble again! So he holds them at $180. Well, your house may end up being worth $120. So we have made up between $250 to $120 and we've done it several times with several different ways and several different people. He's doubling down on the bet. If this doesn't work, we've lost at least twice the amount of money. I mean, it's insanity. Things just don't make accepts, and I just wonder how many people within the sound of my voice are saying, "Wait a minute, I play by the rules. I didn't take out too much debt. I paid my taxes. I didn't use TurboTax where apparently I just didn't see the warnings and I didn't sign the note from the IRS, and I also didn't get the check from the IMF. I also didn't have, you know, I'm not a financial genius, but I paid my taxes!" And now the state, if you're in California or Kansas, is giving me an IOU because I overpaid and they won't give me the money back.
Where's America's frustration level at for the people who have been playing by the rules, the people who have been trying to do their best the whole time?