Biden mortgage trick will raise inflation while Americans will own nothing and not be happy
The Biden administration is pulling out all the stops to make sure Americans will “own nothing and be happy.”
Its latest tactic is encouraging more consumer debt spending through second mortgages, which seems to be less about helping Americans and more about buying votes before the election.
Carol Roth, author of “You Will Own Nothing,” believes Americans need to be warned.
“It’s the arsonists who are burning down your house, and then, they bring a water bottle and say, ‘Hey, I’m going to help put out the fire and rebuild it. It is frustrating,” Roth tells Glenn Beck before explaining what the government is doing now.
“Freddy Mac had this great idea because people have so much equity in their homes. Let us go ahead and offer second mortgages,” Roth says. “But second mortgages don’t get you into housing. Those are consumer loans. Those are people taking money out of their homes and using them whatever it is. And that equity is perceived equity.”
Meanwhile, the homeowners haven’t cashed out the house or sold the house, so it’s not guaranteed.
Roth believes the second mortgage will be “people taking their wealth, their ownership, and going and blowing it on things.”
“That’s what will happen,” Glenn agrees, noting that people will use it to pay down a credit card with a 25% rate in order to use the 9% mortgage rate instead.
“Obviously, we would rather use other money if we can to pay down 25% and taking down your ownership,” Roth says. “I think we have to ask ourselves a few questions here. One, why is it that the taxpayers should all of a sudden back consumer loans? Why is it that we want to encourage more consumer debt spending, particularly during a time of inflation?”
“And why do we want people to reduce the ownership, the equity in their homes?” she adds.
Glenn and Roth both believe this has a lot to do with the 2024 election.
“All these things make him look like the economy is doing better,” Roth explains, but if these programs are implemented as Biden is planning, the economy will be even farther from actually doing better.
“Inflation next year is going to be insane,” Glenn says, and Roth agrees, noting that programs like this are what “started the whole ball rolling with the Great Recession/financial crisis.”
“I’m super excited for taxpayers to back consumer loans,” she continues. “You’re not even backing first mortgages, you’re now backing consumer loans. Way to go, really glad that the government wants to get into that.”
Want more from Glenn Beck?
To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.
