Obama proposes another housing boondoggle to help 'underwater' homeowners

It's the same mindset that believes that more "stimulus" will grow the economy.

The administration has already attempted several schemes to help homeowners overcome what is largely their own bad decision (or simple bad luck) to purchase an overpriced, overvaulued home in a falling market. They have all failed miserably.

But if at first you don't succeed...make sure the failure looks good in an election year:

President Obama is pushing Congress to pass his plan to help struggling homeowners refinance their mortgages.

"I'm sending Congress a plan that will give every responsible homeowner the chance to save about $3,000 a year on their mortgages by refinancing at historically low rates. No more red tape. No more endless forms," Obama said in his weekly address. "And a small fee on the largest financial institutions will make sure it doesn't add a dime to the deficit."

Obama's plan would empower all homeowners who are up-to-date on their mortgages to refinance at today's historically low interest rates. The change would be particularly advantageous for underwater homeowners, who are often denied refinancing because their outstanding mortgage balances exceed the value of their homes.

The president said the housing crisis "has been the single biggest drag on our recovery" and admitted that his administration's previous efforts have fallen short.

"I'll be the first to admit it didn't help as many folks as we'd hoped," Obama said. "But that doesn't mean we shouldn't keep trying."

A long list of California Democrats warned Wednesday Obama's new anti-foreclosure plan isn't nearly aggressive enough to stabilize the volatile housing market. The lawmakers say the proposal is "encouraging" but falls far short of the relief needed to help the millions of struggling homeowners facing foreclosure.

First, someone who is up to date on their mortgage payments is hardly "struggling." Second, this is a gift - a windfall for some who have no business getting a refinancing loan but whose votes are being purchased by the president.

Third, the president still doesn't get it:

"It is wrong for anyone to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom," Obama said. "I don't accept that. None of us should."

Romney told the Las Vegas Review-Journal that the government should let the foreclosure crisis "run its course and hit the bottom."

Obama doesn't understand. It doesn't matter what he does, the housing market is going to bottom out anyway. He is like King Canute commanding the tide not to come in. The forces with which he is dealing are far beyond his pitiful effort to control and reverse. All he is doing by artificially attempting to prop up the market is delaying recovery.

Yes, but by appearing to "do something" about the problem, he will win votes. And that's what's most important to him.