Kona Kohala Blog

There is an accepted insanity found at certain levels of government where double speak is considered the language of the day and psychobabble is considered a way of doing business.

Representative Maxine Waters, in introducing FHA modifications, suggested that the average person is paying too much for loans and that the banks are taking advantage of people with their hidden costs, etc.  She then offered changing FHA's mortgage insurance rate, almost in the same breath, from 0.55% to 1.55% . . . huh?  How is that going to stop the banks?  It will divert much of the excess money people are paying for home ownership to the government rather than the banks but how does that help we the people?

An example of the impact of such a change is this: you buy a $200,000 home using FHA at 5% interest.  Your mortgage insurance is currently 0.55% so on a payment of $1,074 per month, that adds $92 for a total payment of $1,166.  If Maxine Waters gets her way that same $200,000 home at 5% interest would have a 1.55% mortgage insurance rate which equals $258 which raises the monthly payment to $1,332.  Compared to $1,166, that's not a good deal in anyone's arithmetic book. 

Just another example of your representatives at work for you, the American taxpayer, that is if you're one of the 53% actually paying federal income tax and if you're reading this, I suspect you are.

When you combine Ms. Waters work with the socialist state of Hawaii's recent rape of the Hurricane Relief Fund you end up with expensive housing.  Those who wonder why the housing industry isn't recovering any faster than it is can look at this type of leadership for possible reasons.

The Hawaii legislature decided to end Furlough Fridays, the closing of schools on Fridays because the Department of Education ran out of money, by taking the money that home buyers have been depositing into our state's Hurricane Relief Fund.  Without that fund, you can expect to see home insurance rates rise since now the entire load falls on the shoulders of the insurance industry.

Instead of pointing that out, our state legislators tout their saving one of the country's worst school systems from further erosion.  We sure wouldn't want parents to have to deal with their children, maybe even have to teach them something.  Yes, I am a little sarcastic on the subject having grown up in the 50's and 60's before we were protected from everything from riding in the car to playing in the mud.  It really is time to vote them all out and start from scratch; it couldn't be any worse than what we have going on now.  Let's not forget come November, we need a change or those knotheads are going to take us all down.  Of course they have their futures guaranteed at our expense so do they care?