You may have noticed the current series of news articles on the efforts of various communities to use their power of eminent domain to seize mortgages that are underwater so they can provide direct relief to the borrowers.
It's a story that is probably being ignored by most readers but it may be giving us the most revealing peek we've had at the real, true existence of the class war. This is clearly an issue that provides benefits for the middle class at the expense of the 1%, the elite, the upper class - whatever you want to call them.
And this is likely to be the only benefit it produces because the 1% has reacted with aggression, threatening lawsuits from the very banks that the middle class previously bailed out. However, the most telling aspect of the situation may be that the Obama administration has jumped in up to its neck on the side of the 1%, with the Housing Finance Agency, the regulators of Fannie and Freddie, threatening to "choke off mortgage lending in cities that use eminent domain" in that fashion.
Furthermore, this follows on the heels of Obama's recent announcement he wants to dissolve Fannie and Freddie. Without knowing the details of how this would be accomplished, it's probably fair to say that a disruption such as this in the secondary market for mortgage loans would cause havoc and at best, raise the interest rate substantially for 30-year loans while, at worst, possibly eliminating the 30-year loan altogether. This would definitely be another blow for the middle class to absorb.
Obama's announcement was a case of strange timing as well. Fannie and Feddie are currently quite healthy. Yesterday, in fact, Fannie posted its 6th straight quarterly profit and said it was handing over an additional $10.2 billion to the federal government. Last Wednesday, Freddie reported $5 billion in net profit for the 2nd quarter and said they were giving Uncle Sam $4.4 billion in partial repayment for its previous bailout.
And today we read that Obama has joined with the Republicans on the matter of prayers at town meetings. This may sound fairly unimportant, but so did every other initial foot-in-the-door. The case involved could lead to a major change in the law on religion. Obama should know better, given that he deals daily with world problems that are at least partly caused by the deadly mixture of religion and politics. Until now, this issue has generated a major difference in the opinions expressed between the political parties.
These situations should make us wonder just who did we elect in 2008 and 2012. It certainly wasn't the democratic candidate who originally pledged all sorts of change and better days for the middle class.
No, we're still waiting for that guy or gal to come along.