Bankruptcy for Everyone!!!

The King of Moronica has tried to refrain from delving into politics lately and has made every effort to keep things light hearted but your King just cannot keep his mouth shut today. The House today passed a mortgage aid bill which has me really has me wondering about the sanity of our elected officials. This bill will allow bankruptcy judges to rewrite mortgages to reduce the principal and the interest rate. Supporters of this bill say this will force banks to negotiate with mortgagors for better terms. Banks are very willing to work with mortgagors within reason and they do not need some bankruptcy judge rewriting mortgage terms for them. The reason for this is that no bankruptcy judge is the same. They march to their own beat. Some are pro debtor, others are pro creditor and the rest are just plain nuts. Should this bill become law it will create a flood of bankruptcy filings in epic proportions, especially in courts that are known to favor debtors, in order to have judges rewrite mortgages and that is a joke and should not be tolerated. What is going to happen is that mortgagors are going to find every loophole, and Congress is well known for leaving the biggest of loopholes, to take advantage of this law. What would stop mortgagors from running up a large credit card debt, refinancing their mortgage to pay it off and then filing a bankruptcy to cram down the mortgage six months later. Why, the very thought of something like that would send my wife to the mall in a heartbeat. At least the Senate is thinking about putting in a provision limiting this to existing mortgages but even this has a flaw. You can still run up a large credit debt if you knowingly have a mortgage that would qualify you for a bankruptcy rewrite and then cram down that mortgage down leaving the filer with extra money to pay off their luxuries at a reduced rate during the term of their bankrupcty. Ridiculous!. This is a bill that rewards stupidity. Since when do we need Congress writing laws to reward this??? When I purchased my Kingdom of Moronica I made sure that the property I was buying was affordable and that I could live within my means while paying off my mortgage. I did not try to purchase a property that I knew I could not afford. There is no way I would have ever accepted an adjustable rate mortgage which is a big reason for a large number of foreclosures. You have to be a moron to agree to one of those. They lure you in with a great interest rate and after a couple of years of rate adjustments you end up paying a monthly payment that could be up to twice of what you were originally paying. Ugh!
A bill like this can only happen because the House of Representatives is loaded with a bunch of fools that is led by an even bigger fool. You cannot pass a bill that is knowingly armed with opportunities for great abuse just for the sake of passing a bill. The House GOP had some decent ideas that should have been incorporated into the version passed but they were totally ignored by the Democrats. So much for bipartisanship.
Today's bankruptcy courts are overloaded with enough legitimate cases from people who really do need bankruptcy protection along with a ton of ignorant fools who spend beyond their means and then wonder why they cannot make payments. I have no pity for people who amass so much credit card debt and then sink in it. I specialize in moronica, not stupidity.
The passage of this bill will only destabilize the housing market further by driving up mortgage rates as banks will be looking to recoup money from lost interest. As Rep. Lamar Smith of Texas says "This legislation punishes the successful, it taxes the responsible, and it holds no one accountable." It is a bill that President Obama should veto if it makes it to his desk as is. No Bankruptcy judge should be allowed to rewrite a mortgage. They specialize in law, not economics. The Kingdom of Moronica Does not support this foolish legislation and supports those who strive to have it defeated. MORONICA UBER ALLES!!!