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Hernando Today

LETTERS TO THE EDITOR

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The Tampa Tribune

Published: March 6, 2009

Try 'Trickle-Up'

It is surprising how little our politicians know about economics. A sound company is only possible if the people have sufficient money to purchase available consumer goods. Any "trickle-down" policy will simply fail, since money injected at the top tends to stay at the top and does not address the real problem-namely, lack of purchasing power at the bottom.

Recessions and depressions are due to insufficient funds in the hands of the masses. Consumer goods (homes, cars, etc.) are available, but the public cannot afford them. Bluntly put, any stimulus package must be given - as an outright gift - to the workers. If sufficient funds are given to the people, they will quickly pay off debts and purchase the goods - thereby enabling factories and builders to rehire employees.

By simple arithmetic, a trillion dollar bailout program is equivalent to more than $10,000 for every household in America! Would it not make far more sense to give this money to the people themselves, rather than to the rich business leaders who got us into such a financial mess?

Harold W.G. Allen

Spring Hill

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Gun Bill Must Not Pass

First, let me say this: I am not a member of the NRA, I am not a "gun nut" and at the moment I do not even own a gun.

However, I learned to shoot as a teenager, I served in the Army for 11 years, I am a graduate of the U.S. Army Ranger School and I qualified as Expert Marksman on nearly every weapon in use at the time.

I know guns. I know how to use them, what they are for, how to care for them and store them, and not having one right now is a matter of informed personal choice.

This bill is an abomination and a direct assault on my right as a free citizen in a free country to keep and bear arms as guaranteed by the 2nd Amendment to the Constitution. Even if passed with the best of intentions, it will do nothing whatsoever to prevent criminals from having firearms and nothing whatsoever to protect me and mine from harm.

I have written to U.S. Rep. Ginny Brown-Waite, R-Brooksville, asking her to prevent this bill from getting out of committee, and if by some fluke it does, using her influence to see that it does not pass into law.

I urge each and every one of you to do the same. This must not pass!

Gail Leatherwood

Spring Hill

Down On The Farm

I am writing to let you know how happy I am that Commissar Obama is finally taking steps to make us all equal. I would have preferred that he give us all access to private jets, fabulous perks, great vacations, spas and good salaries. He is not going to do that, but at least he's taking steps to take all those perks away from all others. That way we can all be equal in our deprived situation.

It won't help me or most of us at all, but doesn't it feel good to know that all those successful people will be punished for their efforts?

Retribution is much better than hate. Now we're getting even with all those people who have worked hard to provide us with ill-paying jobs. Now all the pigs will be equal.

All the pigs will be equal except some commissar politicians will be more equal than all us other pigs. As far as I know, the private jets being provided to Pelosi, Reid and other politicians are paid for with tax dollars. George Orwell's "Animal Farm" is now a reality - it's just 25 years late.

Terry A. Lyon

Brooksville

Drop The Overly Simple Rhetoric

I have been reading and hearing a good deal of criticism of the current and projected government activities to assist homeowners whose mortgagees are under water. (The current value of the owner's home is less than the outstanding balance on the mortgage.)

The primary complaint centers on an allegation that the owners and lenders generated mortgages that could not be afforded and their neighbors should not be required to bail them out. In many, but not most cases, that is obviously true.

I decided to look at Hernando County homes sales statistics to develop an informed perspective of the situation. On average, homes purchased before 2004 are currently valued higher than the selling price. For subsequent years the current values as related to the purchase price are: 2004 loss of 7 percent, 2005 loss of 29 percent, 2006 loss of 38 percent, 2007 loss of 28 percent and for 2008 the loss is 9 percent. The mean average of the current amount that Hernando county home values are below the original price by year of acquisition are: 2004 is $7,400; 2005 is $40,600; 2006 is $60,800; 2007 is $38,000; and for 2008 it is $9,800. These numbers are averages, the actual shortfall amount will be based on actual purchase price paid and equity from mortgage payments.

So what does this mean for those of us with current mortgages? If you bought a home in Hernando County before 2004, as of now your mortgage is probably above water. If you bought in 2004 or 2008 you are close to being covered by the $6,000 maximum the feds will provide for refinancing or sales. If you bought in 2005 through 2007, there are some real problems. Unless your mortgage company will accept a short sale (payoff of less than the mortgage balance) or you find a buyer willing to pay more than the current value for the home, you probably can't sell or refinance your home.

There were about 21,500 homes mortgaged in Hernando County in the period 2005 through 2007. Most of those homeowners will not be able to sell or refinance, even though about 90 percent have current mortgages.

In the event that the home must be sold (employment, death, divorce, etc.) foreclosure would appear to be the only option for most. The problem will persist until rising prices meet decreasing mortgage balances, which will probably take many years. Over that time, property values in Hernando County will be depressed by a very large number of foreclosures.

Let's drop the overly simple rhetoric and face the problem.

Loren Shellabarger

Spring Hill

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