• 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

    • FTL Digest 2017-07-19
      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 2017-07-20
      Toronto man in trouble after building stairs in a City Park :: Bureaucratic inefficienecy :: Public vs private land :: Elon Musk claims to have "verbal approval" for a Hyperloop from DC to NYC :: Dutch Police announced they had taken down a darknet market :: Ralph's lunacy :: Caller tries to make a libertarian case for a universal income :: Pr […]
    • FTL Digest 2017-07-18
      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 […]
  • RSS Break the Matrix

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

    • The Fed May Show Trump No Love
      By: Peter Schiff, President and CEO Euro Pacific Capital Typically, U.S. Presidents are wary of claiming stock market performance as a referendum on their success. Most have seemed to understand that taking credit also means accepting blame, and no one would want to make the tortured argument that the positive moves reflect well on their presidency […] The p […]
    • Weak Data Sinks Dollar But Floats Stocks Ep. 268
      Summary: More weak economic data today sent the U.S. stock market to record highs; at least the Dow and the S&P hit new records. NASDAQ not quite, but very close.  The dollar hit a new low for the year.  The dollar index, settling in at 95.10, right on the low for the day.  That’s down […] The post Weak Data Sinks Dollar But Floats Stocks Ep. 268 appeare […]
    • Market Ringing Lots of Bells:Ep. 267
      Summary: There are market indicators of a major top as illustrated by the Blue Apron IPO, as it represents the failure of a very weak company attempting to raise money my means of an IPO when the market may have lost its steam. The stock is trading at $7.14, down from its initial $10/share offering. […] The post Market Ringing Lots of Bells:Ep. 267 appeared […]
    • Another Weak Jobs Report Portrayed as Strong – Ep. 266
      Summary: There wasn’t much of a market reaction to this Nonfarm Payroll report; the dollar index was only up .2% on the day. It closed up flat on the week. The Canadian dollar closed at a 10-month high against the dollar. Also bond prices continue to fall; this is a bad week if you own […] The post Another Weak Jobs Report Portrayed as Strong – Ep. 266 appea […]
    • What It Means To Be An American – Ep. 265
      Summary: One of the key differences between Americans and citizens of other countries is that in most nations of the world, individuals gradually won freedoms and privileges from a monarchy. In the U.S., however, we started with all of our rights.  Then, Americans created government by surrendering some of their power, empowering government.  These rights [… […]

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.

Advertisements

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: