Today’s John Shadegg op-ed: “Eat dog food in your old age to so I don’t have to deal with the mortgage crisis now!”

29 Apr 2008 08:06 pm
Posted by: Donna

That’s not what his piece in the AZ Republic was titled, but it might as well have been.   It had the more benign heading of “A free market approach to housing crisis”.  As every smart Diva knows, “free market” is GOP-speak for “I got mine, screw you”. This is the operating credo behind Shadegg’s helpful solution for cash-strapped Americans with ballooning mortgage payments in a troubled economy. But John wants you think he cares, so he’s willing to throw you a bone, although you don’t deserve it because you are a woefully irresponsible peon.

In a nutshell: Shadegg disagrees with Rep. Barney Frank (D-MA), who wants to create a fund to help the homeowners get new FHA loans. That damn commie Frank also wants to provide counseling to people who are about to lose their homes AND put money into improving neighborhoods!  I know. What the hell is Barney thinking? Like old President Regular Guy You Want To Have A Beer With is ever gonna sign anything that, you know, helps Regular People.

Anyway, Shadegg apparently got hip to the fact that a lot of American workers have these nifty things called 401ks and IRAs. Those are tax-deferred retirement accounts that were the Free Market’s answer to the eroding pensions and safety net that resulted from several decades of doing everything in their power to rid this country of pesky things like unions and job security. Now, over 100 million Americans are throwing their retirement security to the capricious winds of Wall Street. Some of them are currently tapping into those accounts to stay in their homes, while paying great penalties to do so.

Essentially, if you take a premature distribution on a tax-qualified (meaning you put pre-tax dollars into it) retirement account, you pay income tax on it plus a 10% penalty. So you could be losing 30%, or more, off the top of what you took out, not to mention losing the potential growth of the asset. Shadegg’s “solution” to the housing crisis is to magnanimously allow the dumb serfs to be temporarily forgiven the tax and penalties. Which…

…Okay, fair enough. I actually agree with him on the specifics of his bill. It makes sense to not kick people who are already down enough to have to liquidate their retirement accounts. That said…

IT’S NOT THE ANSWER TO THE LARGER ISSUE, SHADEGG, YOU CLUELESS PLUTOCRATIC ASSMUNCH!!

Not to mention how it’s not going to mean a hill of beans to all the other millions of Americans who aren’t even lucky enough to have a 401k or IRA. Or how it’s not going to replace the investment growth opportunity lost to the people who did take advantage of the 12-year tax and penalty forgiveness period Shadegg proposes in their retirement accounts. By the way, if those poor saps can’t pay back what they took out of their accounts in the alloted time, guess what? They have to pay back the taxes and penalties.

Be sure to read the editorial, and tell your elected representative to support Barney Frank’s proposal
www.house.gov/frank/fha0308.html. And kick a few bucks, if you have them, to Shadegg’s opponent Bob Lord: www.lord2008.com

5 Comments

  1. Comment by Roger56phx on April 30, 2008 10:32 am

    Shadegg is nuts!

    What an idiot! It’s time to get this old fart out of office once and for all!

    I consider myself an independent voter and I want Bob Lord representing ME this time around. Phoenix needs him and needs to get Shadegg out of office!

  2. Comment by Katie on April 30, 2008 3:09 pm

    Love “assmunch”!

  3. Comment by Krista on May 5, 2008 10:07 pm

    I’d like to also point out that Annie Loyd is running as an independent in CD 3.

    Her website is http://www.annieloyd.com/.

  4. Comment by Priscilla on September 9, 2009 9:54 am

    In actuality “free market” means just that. But there was no free market cause in the mortgage crisis. “De-regulation” is democratic code for continuing to impose regulations that do not work but calling it dereegulation so you can blame the free market. What free market prioncipals did Fannie Mae and Freddie Mac use? Government bureacrats does not equal free market it however does equal waste and over regulation.

  5. Comment by Donna on September 10, 2009 10:12 am

    Wow, Priscilla, what a treasure trove of uninformed talking points that was. Fannie Mae! Freddie Mac! Overregulation! Boogeda boogeda! Next time, throw in ACORN and you’ll win the bonus.

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