• RSS Ludwig Von Mises Institute of Austrian Economics

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Republican Liberty Caucus

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Freedom Watch

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Free Talk Live

    • Free Talk Live 2017-09-18
      Pharma Bro :: Common Law :: Digital Cash :: Mark's Boat :: Kid Tazed in His Testicles to Death :: Mental Illness :: Google Bots :: Homelessness :: Cop Shootings :: HOSTS - Mark, Melanie
    • FTL Digest 2017-09-17
      Free Talk Live's Daily Digests feature highlights from our full-length seven-day-a-week live radio show, selected and edited by Riley Blake. Enjoying the digests? Please donate $5-10 per month to Riley via this link: https://www.patreon.com/crblake86 If you want to donate via bitcoin, you can do so at the following address: 1NytDNA14UcYsvzX5DHhzowGCqNou […]
    • Free Talk Live 2017-09-17
      Broadcasting From the Free State Bitcoin Shoppe's Grand Opening in Portsmouth, NH :: Operating the Store :: Is Bitcoin the Best? :: Bitcoin and Banks :: World Famous Bitcoin Tour :: Derrick J's Favorite Customer Stories :: Joel Valenzuela from Dash Force News Joins Us :: Cryptocurrency Acceptance in Other Countries :: Bitcoin Vending Machine :: Vic […]
  • RSS Break the Matrix

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Schiff Radio

    • Fed Minutes More Show Than Substance – Ep. 285
      Market Anticipates Quantitative Tightening The market continues to rise; people are excited about the Fed meeting that start tomorrow and concludes on Wednesday.  Nobody expects a rate hike and there’s not going to be a rate hike, but what everybody is looking forward to is the Fed outlining its strategy for quantitative tightening. Shrinking the […] The pos […]
    • Tax Deal With Dems Won’t Stimulate Growth – Ep. 284
      President Trump Courts Dems on Tax Reform I think the catalyst for the rise in the stock market today is enthusiasm over President Trump’s announcement that he is working with the Democrats and is close to a deal on tax cuts. So that if he can’t get something done with the Republicans, he will get […] The post Tax Deal With Dems Won’t Stimulate Growth – Ep. […]
    • Risk On Includes U.S. Dollar – Ep. 283
      A Huge Risk-On Day The markets rallied all over the world.  Everything was up. All the foreign markets – European markets, Asian markets, rallied.  It was a huge risk-on day. Stocks went up and bonds got clobbered. Yields rose on government bonds, the 10-yr. out to the 30-yr. Insurance Rates Going Up There will be […] The post Risk On Includes U.S. Dollar – […]
    • Blowing the Roof Off the Debt Ceiling
      Trump said Government was Too Stupid When Donald Trump was originally elected President, I was out there warning, that budget deficits under the Trump Presidency are going to be huge.  Donald Trump never ran as a fiscal conservative or a Libertarian.  He didn’t say government was too big, he just said it was too stupid. […] The post Blowing the Roof Off the […]
    • Blowing Off The Roof
      The commentary below is from Peter Schiff, CEO of Euro Pacific Capital and author of the The Real Crash: America’s Coming Bankruptcy. Please feel free to excerpt what you like with proper attribution. To speak with Peter, please contact Andrew Schiff at 203-662-9700 ex. 135 or aschiff@europac.net. By: Peter Schiff, President and CEO Euro Pacific Capital Of [ […]

Santa Barbara city loans $4.4 million in home loans to public employees

A damning piece published by the Daily Sound has caused quite an uproar in the community after divulging information about the city loaning out millions of dollars in home loans to public employees (the article can be found here).  The piece evidently touched a nerve of the city’s financial director, so much in fact that he felt compelled to write an email response to the mayor and city council members (which can be found here).

The facts are that 46 loans were issued since 2001, 10 of which were issued after Dec 2007 when the housing collapse started, with the last being issued in 2009.  The total loans is now $4.4 million, of which $632,000 in interest and $188,000 in principle has been paid back.  A lot of the homes are upside-down, and one of the loans is not current.  The program was enacted by a liberal city council in an attempt to entice and retain public employees to work for the City of Santa Barbara.  Since housing prices were so high, the program would offer employees a second mortgage that could be worth up to 15% of the cost of the house to help them with their purchase.

Flash forward to our current year and the City of Santa Barbara is facing a budgetary crisis.  The $4.4 million that is being loaned out could have been used for libraries, pools, parks, recreation and other community services which are now on the cutting board to close the budgetary gap.  They say hindsight is 20/20 right?  The fact of the matter is the city was extremely short sited, and like many others it was under the illusion that the good times would keep on rolling.  Thus, it enacted this program with the best of intentions, but with little financial prudence.  The financial director admits in his article that “what’s happened to the real estate market is unprecedented and could not have been anticipated.”  Unfortunately, ignorance is no excuse when you have other people’s money at stake.  If they had done their homework and heeded the words of Austrian economists such as Peter Schiff, Ron Paul, Lew Rockwell, ect., then they would have been able to anticipate this housing crisis.

This gross financial negligence leads one to question, why was the city in the business of making home loans in the first place?  Time and time again when the government tries to act like a business it fails miserably.  Thus, this is why government should be kept small and focused on only the most specific tasks not handled by the private sector. When banks were not making home loans after 2007, the city of Santa Barbara was still offering them and this gave the public employees a special privilege not afforded by those in the private sector.  It’s a very elitist mentality and one that completely perverts the concept of a “public servant.”  Hopefully this example will outrage the public enough so that they will fight for reforms to curtail government power and cut back on financial waste (think government pensions).  We cannot afford any more short sightedness or those who act based on their heart instead of their head.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: